March6th 2018GeorgeBeatonPaulHugh-Jones

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TheworldistalkingaboutInnovation…butourresearchsaysthatclientsdon’tcaremuch

Question: (1) Which of the following are most important to you when considering a firm to provide legal services?(2) And now thinking about the time when your organisation most recently selected a firm to provide legal services in Australia, what was the most significant reason for choosing the winning firm over the next best option?Base: Total market

Attributes

%'yes' rank %'yes' rankExpertiseinyourareaofneed 73 1 52 1Understandingyourbusiness/industry 64 2 37 2Responsiveness 59 3 27 4Commercialityofadvice 57 4 31 3Reliability 51 5 19 8Easeofdoingbusinesswith 44 6 19 6Costconsciousness 42 7 15 9Accesstopartners/principals 41 8 19 7Excellentcommunication 40 9 10 11Leadingexpertise 40 10 19 5Price 35 11 11 10Qualitydocumentation 33 12 7 12Caringabouttheirclients 21 13 4 13Friendly 18 14 2 15Innovation 13 15 1 16Strongbrand 10 16 3 14

DriversofconsiderationDriversofpurchase

decision

Driversofconsiderationandfinaldecision– 2018beatonbenchmarks AULegalmarket

ClientsratefirmsloweronInnovationthanotherserviceelementsin beatonbenchmarkstracking

4

Law ConsultingEngineering(CE)

6

6.2

6.4

6.6

6.8

7

7.2

7.4

7.6

7.8

8

2011 2012 2013 2014 2015 2016 2017 2018

Overall Client Service Innovation

6

6.2

6.4

6.6

6.8

7

7.2

7.4

7.6

7.8

8

2011 2012 2013 2014 2015 2016 2017 2018

Overall Client Service Innovation

Co-developmentofInnovationresearch

5

1. beaton’shypothesis:Despiteallthetalkandpositioningaroundinnovation,thereismismatchbetweenfirms’currentinnovationactivitiesandwhatclientswantandvalue

2. GroupdiscussionwithCMOsofleadingfirmsconfirmedneedforVoiceofClientresearch

3. Researchdesignco-developedwithleadingfirms

beaton’sdefinitionofInnovation:

“Implementinganideawhichaddressesaspecificneedanddeliversvalueforboththeirclientsandthefirm”

Datatosetthescene

• Clientswhodonotconsideranyfirmtheyknow(?)tobeinnovative

• Law:27%

• Consultingengineering(CE):25%

• Ofthefirmsnominatedasinnovative…1/2to2/3werenot themain

supplier

• Over50%oflawrespondentshaveneverseenanexampleofoutstanding

innovationfromalawfirm(?)

• 50%ofCErespondentshaveneverseenanexampleofoutstanding

innovationexceptAutomation(leastinfluence)fromaCEfirms

….Thereispent-up,unmetdemand

6

Innovationresearchunpacksthetypesofinnovationclientsvalue/howtheseinfluencechoiceoffirm1. Automation

2. Applicationofanalytics

3. Betteroutcomes

4. Reducedrisk

5. Moreusefuldocumentation

6. Betterclientservice

7. Fasterclientservice

7

8. Closercollaboration

9. Moreeffectivecommunication

10. Lowerfees

11. Lessworkforyou

12. Morechoiceinhowyourworkis

done

13. Addedvalueforyourcustomers

(CEonly)

QuickPoll– gotowww.zeetings.com/beaton

WhatdidclientssaymostinfluenceschoiceoffirmforbothLawandCE

1. Moreeffectivecommunication

2. Reducedrisk

3. Lowerfees

4. Automation

InfluencevsExposurequadrantanalysisInnovation– Law

10

Faster client serviceMore choice in how your

work is done

Application of analytics

Automation

-0.2

-0.15

-0.1

-0.05

0

0.05

0.1

0.15

0.2

-0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8

Top

of m

ind

reca

ll[%

seen

out

stan

ding

exa

mpl

e -M

ean

%]

Influence of benefit[Likelihood to increase firm use - Mean likelihood]

ExtremelylikelyVerylikelyModeratelylikely

BUSINESS AS USUALLower influence, More common

COMPETEHigher influence, More common

TARGETLower influence, Less common

DIFFERENTIATEHigher influence, Less common

Faster client service

Application of analytics

Automation

-15%

-5%

5%

15%

25%

35%

45%

-0.80 -0.60 -0.40 -0.20 0.00 0.20 0.40 0.60 0.80

Top

of m

ind

reca

ll[%

seen

out

stan

ding

exa

mpl

e -M

ean

%]

Influence of benefit[Likelihood to increase firm use - Mean likelihood]

11

Business as usualLower influence, More common

CompeteHigher influence, More common

TargetLower influence, Less common

DifferentiateHigher influence, Less common

ExtremelylikelyVerylikelyModeratelylikely

InfluencevsExposurequadrantanalysisInnovation– CE

Howreceptiveareclientstoinnovativeproposals?

12

Yes17%

No83%

Have you ever received an unsolicited proposal from a consulting engineering firm

for solving problems and/or realising opportunities of which your organisation was

previously unaware?

Yes12%

No88%

Have you ever received an unsolicited proposal from a law firm for solving problems and/or realising opportunities of which your

organisation was previously unaware?

Law CE

Winrate:33% Winrate:35%

Segmentation:EarlyadoptersvsLaggards

13

EarlyAdoptershaveinnovationasaveryimportantKPITheyrelyontheirfirmsforinnovation– speciallyCE

14% 11%

7%4%

8%

6%

37% 40%

33%38%

(70%)

(79%)

-40%

-20%

0%

20%

40%

60%

80%

100%

How important innovation isto achieving the KPIs for

which you are accountable?

How important is advicefrom outside law firm/s on

new technologies andprocesses?

11% 6%

10%3%

5%

28%17%

47% 72%

(75%)

(89%)

How important innovation isto achieving the KPIs for

which you are accountable.

How important is advicefrom consulting engineeringfirm/s on new technologies

and processes.

Veryimportant(8-10)

Important(6-7)

Neitherimportantnorunimportant(5)

Unimportant(3-4)

Veryunimportant(0-2)

Law CE

beaton insights/recommendations

1. Innovationhaslimitedvalueunlessappliedtoaclient’sneeds

2. Innovation Technology

3. Don’tinnovateonyourowninthedark

4. Understandwhatinnovationclientsneedandvalue

14

Innovationreports• Law,CE– now• Accounting– April• $10,000each

george.beaton@beatonglobal.compaul.hugh-jones@beatonglobal.comdavid.goener@beatonglobal.com

ThisreportisoneofaseriesanalysingtheVoiceofYourClientsintheprofessionalservicesmarketplace.Eachreportfocusesonatopicofimmediatestrategicimportanceandcontainsinterpretedinsightsintotypicalclients’andprospects’needsandthedriversoftheirbuyingbehaviourandsatisfactionwiththevaluetheyreceivefromprofessionalservicesfirms.Asaleaderinprofessionalservicesresearchandadvice,beaton’s trustedrelationshipwithfirmsandtheirclientsensuresthesereportsarebasedonarelevantcross-sectionofthemarketandcontainrich,actionablefindings.

AlsoavailableinLaw,ConsultingengineeringandAccounting:• MarketingEffectivenessReport

15

Clientinsightsguidingyourstrategy

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