commonwealth bank legal market pulse report. · areas, health and education. the law firms surveyed...

Commonwealth Bank Legal Market Pulse Report.Conducted by Beaton Research + Consulting September Quarter 2014

1

COMMONWEALTH BANK LEGAL MARKET PULSE – SEPTEMBER QUARTER 2014

Contents

Confidence continues to improve as economic outlook brightens 2

Australian economic outlook 3

September quarter 2014 results summary 5

Overall business conditionsPerception of business conditions for Australian law firms from now to 2 years time 7

Perceived performance of Australian economy 7

Perception of business conditions in specific areas 8

FY14 financial performanceTotal revenue change from FY13 to FY14 9

Difference between FY14 budgeted and actual results revenue 9

Difference between FY14 budgeted and actual results expenses 10

FY15 business prioritiesMarket entry and exit 11

Revenue predictionsChanges in revenue over the next 6 months by location 12

Changes in revenue over the next 6 months by practice area 12

Changes in revenue over next 6 months by practice area cont. 13

Realised rates and fee structuresExpected changes in realised rates over the next 6 and 12 months 14

Percentage of revenue generated using alternative price structures 14

Expense and profitability predictionsChanges in expenses over the next 6 months 15

Changes in staffing over the next 6 months 15

Change in operating margins over the next 6 months 16

Business process efficienciesAre clients’ putting more pressure for law firms to use LPO? 17

Effect of growth in LPOs on operating margin over the next 12 months 17

Provision of non-legal servicesProvision of non-legal services 18

Non-legal services – percentage of revenue 18

Potential revenue from non-legal services 19

Competition from non-traditional (alternative business model) law firmsCompetition from non-traditional (alternative business model) law firms (segmented by tier) 20

Frequency of competition from non-traditional (alternative business model) law firms 20

Attitudes and behaviour toward philanthropyFirms practising in the not-for-profit sector (segmented by tier) 21

Firms practising in the not-for-profit sector by Practice area 21

Firms practising in the not-for-profit sector by Practice area cont. 22

Change in practise in not-for-profit sector in the next 12 months 22

Reasons for practising in not-for-profit sector 23

Effect of global financial crisis on the attractiveness of serving the not-for-profit sector 23

2


Marc Totaro National Manager, Professional Services Commonwealth Bank

Welcome to the first quarter edition of the Commonwealth Bank Legal Market Pulse report for the 2014/15 financial year, conducted in partnership with Beaton Research + Consulting.

It is encouraging to report that during the quarter we witnessed a continuation of an upward trend in confidence amongst law firms in Australia, Asia and the United Kingdom. This positive sentiment was echoed by the fact that law firms are increasingly positive about Australia’s economy in the next 12 months.

While sentiment has been steadily improving over the last year, a negative net confidence reading was still recorded. Despite this, the longer term outlook amongst law firms continues to remain positive.

Notwithstanding an increasingly positive outlook, firms continue to deal with ongoing challenges in key areas such as winning new business and client price negotiations.

“Our top priority is managing costs of production against fixed fees, quotes or estimates”. CEO/Managing Partner mid-tier firm.

One area that remains firmly in positive territory amongst firms is their ability to access capital and there were also encouraging improvements across key financial metrics, including collecting invoices and controlling expenses. In addition, seven in 10 firms reported that their 2013/14 financial year expenditure was below budget, driven by tighter control of costs, improving their bottom line.

“We’re focusing on maximising the benefits of our integration with the global network”. CEO/Managing Partner top-tier firm.

The survey revealed mixed results for revenue expectations amongst domestic and international locations in the next six months. UK based international law firms were the most positive, with 100% expecting revenue increases, as are firms in Brisbane, Melbourne and Perth. Conversely, firms based in Sydney, Canberra and Asia are expecting revenue declines.

In terms of staffing expectations, firms flagged an increase in partner and senior associate numbers in the next six months, albeit at a slower rate. We also saw increases expected across all junior and administrative roles.

The insolvency and restructuring practice area witnessed a significant decline in confidence this quarter, which is not surprising given the general positivity around the economic outlook. Revenue expectations among the banking & finance, trade practices and competition and consumer law practice areas recorded the most substantial gains.

Diversification continued to gain in prominence amongst firms, with 38 per cent of firms indicating revenue from non-legal services will grow over the next 12 months, with an even sharper increase expected in the longer term (62 per cent over the two years).

In this quarter’s edition, we conducted a spotlight on philanthropic activities amongst law firms, with an overwhelming majority of firms indicating that they provide pro bono services to the not-for-profit sector. While most firms indicated the primary driver was to give back to the community, the growing not-for-profit sector remains of commercial significance with one in two firms deriving revenue from the sector.

I trust you will find this edition of the Commonwealth Bank Legal Market Pulse Report informative and useful for your firm’s planning and benchmarking. We look forward to continuing to monitor the legal industry’s sentiment and performance, and sharing these insights with you.

Marc Totaro Email: [email protected] Phone: +61 2 9303 1940

Confidence continues to improve as economic outlook brightens

3


Diana Mousina Associate Director Economics Commonwealth Bank

The Australian economy expanded by 2.9% in 2013/14 as a whole. This outcome is a touch above that recorded in 2012/13 and is close to trend. This should be seen as a decent outcome for an economy in transition. The economic package remains very attractive. Australian public finances and the financial system remain in good shape, the AAA credit rating looks secure and policy makers still have some firepower if needed.

The main uncertainty that is clouding the economic outlook is ensuring that the transition from mining to non-mining led growth is successful. Solid growth in residential construction and resource exports is on track. But non-mining business capex growth needs to be stronger.

The downturn in mining capex will be significant. The non-mining economy will need to make a more significant contribution to growth if trend-like growth outcomes are to be expected.

0

2

4

6

0

2

4

6

1861 1881 1901 1921 1941 1961 1981 2001

%

Source: RBA/CBA

Mining Investment

(% of GDP) %

Previousbooms

The uncertainty of this growth transition has impacted business and consumer confidence. Consumer confidence remains quite fragile but business confidence is lifting. The latest report from the Commonwealth Bank Legal Market Pulse Report (conducted by Beaton Research + Consulting) indicated an overall 3.9% increase in business confidence from the last quarter of research. More positivity towards the longer-term outlook continues to be a key theme in the survey. Law firms are managing weakness in revenue through slowing expense growth.

Australian economic outlook

4


Sentiment remains fragile given the uncertainty of the growth transition. Business confidence is tracking higher but consumer sentiment is low.

-40

0

40

80

-40

0

40

80

Jul-01 Jul-04 Jul-07 Jul-10 Jul-13

Sentiment

(annual % change)% %

Source: WBC Melbourne Institute , NAB

Consumersentiment

Businessconfidence

Labour market indicators give a good overall read on the health of the economy. We believe the unemployment rate is around its peak at 6.4%. Jobs vacancy data (a leading indicator of labour market conditions) is consistent with a downtrend in the unemployment rate. And business surveys are pointing to jobs growth running at a pace that is sufficient to turn the unemployment rate around. We expect the unemployment rate to hover around 6.0% towards the end of the year. Jobs growth will be focussed in residential-construction associated areas, health and education.

The law firms surveyed in the Commonwealth Bank Legal Market Pulse report seem to be more cautious in estimates around expected staff numbers. The majority of law firms suggested that partner and senior associate numbers were likely to grow at a slower rate over the next six months.

-60

-25

10

45

80- 2

- 1

0

1

2

Jul 00 Jul 03 Jul 06 Jul 09 Jul 12

Unemployment rate

(annual change, lhs)

Job vacancies*(inverse, rhs)

% %pa

* Source: ANZ

Unemployment & Vacancies

Turn in vacancies typically marks turn in unemployment rate

The Reserve Bank of Australia (RBA) has had a neutral policy stance since February. The desired growth transition is underway, inflation measures are moving towards the top end of the RBA’s target band and the Australian dollar has now depreciated to below USD0.90. A lower currency will provide stimulus to growth and increase imported inflation.

The Central Bank is also becoming increasingly concerned about the elevated growth in dwelling prices, particularly given the investor interest in the market. Commonwealth Bank’s forecast for growth and inflation to come out above the RBA’s forecast forms our view that the RBA will need to start raising interest rates sooner than financial markets are currently expecting. We expect a 25bpt interest rate hike in February, taking the cash rate to a 2.75%.

5


Summary of Q1 FY2015 findingsSeptember quarter 2014 results summary

%

On balance the market expects the Australian economic outlook to improve over the next 12 months

This represents a +3.9% increase in confidence from the last quarter of research.

23.3%

Although the short-term outlook remains negative, confidence among law firms has steadily improved over the past 12 months

-43%

Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15

-28%-23%

-17%

Firms are forecasting an increase in usage of alternative price structures

Law firms are forecasting a 5% increase in the usage of alternative price structures, rising from 28% to 33% over the course of the next 12 months.

1 in 2 law firms (52%) failed to achieve their FY14 revenue targets Firms have attempted to offset shortfalls in their bottom-line through tighter control of their expense lines with 7 in 10 firms (69%) reporting FY14 expenditure below budget.

Revenue Expenses

FY14 Budget vs. Actual

17% Over budget

31% On budget

69% Under budget52% Under budget

28% On budget

3% Over budget

Perception of business conditions

Net

% (p

osi

tive

- n

egat

ive)

-23-17

10

45

63

23

Q4FY14

Q1FY15

Q4FY14

Q1FY15

Q4FY14

Q1FY15

At the moment Likely to be in12 months time

Likely to be in2 years time

2 in 5 law firms (40%) express growing pressure from their clients to use legal process outsourcing

The impact of this trend is more evident among top-tier firms.

23

37

63

36

3240

38 32

Disagree / Strongly Disagree Neutral Agree / Strongly agree

Total Top-tier Mid-tier

Majority of firms (87%) provide philanthropic services to the not-for-profit sector

However, a significant proportion of firms also use their not-for-profit relationships to derive a commercial return.

Provide pro bono advice

Provide advice at reduced fees

Provide advice on a normal

fee-paying basis

87% 67% 50%

Three main practice areas in which law firms provide advice to not-for-profit organisations

September quarter 2014 results summary

Revenue from non-legal services is expected to grow over the next 12 months, and to represent an even greater proportion of firm revenues in two years time 62%

38%

38%

62%

Proportion of revenue from non-legal services

In 12 months time In 2 years time

70% Employment, workplace and Occupational Health & Safety

67% Litigation and dispute resolution

67% Other general work

CIB0501_Infographic_DPS.indd 1 9/10/14 5:31 PM

6


September Quarter 2014 results summary cont.

%

2 in 5 law firms (40%) express growing pressure from their clients to use legal process outsourcing

The impact of this trend is more evident among top-tier firms.

23

37

63

36

3240

38 32

Disagree / Strongly Disagree Neutral Agree / Strongly agree


Majority of firms (87%) provide philanthropic services to the not-for-profit sector

However, a significant proportion of firms also use their not-for-profit relationships to derive a commercial return.

Provide pro bono advice

Provide advice at reduced fees

Provide advice on a normal

fee-paying basis

87% 67% 50%

Three main practice areas in which law firms provide advice to not-for-profit organisations

62%

38%

38%

62%

In 12 months time In 2 years time

70% Employment, workplace and Occupational Health & Safety

67% Litigation and dispute resolution

67% Other general work

CIB0501_Infographic_DPS.indd 2 9/10/14 5:31 PM

2 in 5 firms expect revenue from non-legal services to increase in 12 months time, and 3 in 5 believe it will increase in the next 2 years.

7


Overall business conditions

Perception of business conditions for Australian law firms from now to 2 years time

Although the short-term outlook remains negative, perceptions of business conditions continue on an upward trajectory over the past 12 months (-43% in Q2 FY14, -28% in Q3 FY14).

-23 -17

1023

4563

80

60

40

20

0

20

40

60

80

100

Q4 FY14 Q1 FY15 Q4 FY14 Q1 FY15 Q4 FY14 Q1 FY15At the moment Likely to be in 12 months time Likely to be in 2 years time

Net

% (

posi

tive

–-

nega

tive

)

Perceived performance of Australian economy

In balance, there is an expectation that the Australian economy will improve over the next 12 months. This is consistent across top-tier and mid-tier firms.

50

50

50

13 13 14

37 38 3623.3 25.0 22.7

100

80

60

40

20

20

40

60

80

100

100

80

60

40

20

0

20

40

60

80

100

Total Top tier Mid tier

%

Positive Very positive Negative Very negative Neutral

36

25

11

32

32

18

21

21

39

7

18

18

11

4 4 4

24

29

39

At the moment Likely to be in 12 months' time Likely to be in 2 years' time0

10

20

30

40

Mean %

More than 75%

Between 60% and74%

Between 45% and59%

Between 30% and44%

Between 15% and29%

Between 1% and14%

0%

Average percentNet % (positive – negative)

Perc

enta

ge

8


Perception of business conditions in specific areas

Competition between law firms has perceived to have softened marginally. However, business conditions remained challenging across most business areas.

35 40

3

-13-23 -17 -19 -17

-32 -27

-65-57 -61 -60

-68 -70 -74 -73

100

80

60

40

20

0

20

40

60

Q4FY14

Q1FY15

Q4FY14

Q1FY15

Q4FY14

Q1FY15

Q4FY14

Q1FY15

Q4FY14

Q1FY15

Q4FY14

Q1FY15

Q4FY14

Q1FY15

Q4FY14

Q1FY15

Q4FY14

Q1FY15

Accessing capital

Keeping qualitystaff

Keepingexpenses under

control

Finding qualitystaff

Collectinginvoices

Competing withother firms

Keeping stafffully utilised

Winning newbusiness

Negotiating pricewith clients

Net %

(po

sitiv

e -n

egat

ive)

9


FY14 financial performance

Total revenue change from FY13 to FY14

It has been a challenging year for law firms, especially among top-tier firms. Half of the mid-tier firms (48%) reported revenue growth in excess of 5% for FY14 compared to 1 in 8 (13%) for top-tier firms.

2413

29

28 50 19

3 5

725

2813

33

3 57 10

3.0

0.1

4.1

20

10

10

20

100

80

60

40

20

0

20

40

60

80

100


Ave

rag

e %

Increased 2% - 5%

Stayed about the same

Increased 11% - 15%

Increased >16%

Increased 6% - 10%

25

11

32

18

21

39

18

18

11

29

39


10

20

30

40

Mean %

More than 75%

Between 60% and74%

Between 45% and59%

Between 30% and44%

Between 15% and29%

Between 1% and14%

0%

Average percentAverage % Decreased

2% - 5% Decreased 6% - 10%

Perc

enta

ge

10


Difference between FY14 budgeted and actual results revenue

Half the law firms (52%) failed to meet their revenue budgets for FY14.

31 25 33

2113

24

28

25

29313

17 25 14

2.8 3.2 2.6

20

10

10

20

100

80

60

40

20

0

20

40

60

80

100


Aver

age

%

On budget

Under budget by 2%-5%Under budget by 6%-10%Under budget by 11%-15%

Over budget by 2%-5% Mean

Perc

enta

ge

Difference between FY14 budgeted and actual results expenses

The majority of law firms have been able to (at least partially) offset underperforming revenue growth through expense reductions.

28 25 29

48 50 48

1725

143 5

3 5

3.4 3.8 3.3

20

10

10

20

100

80

60

40

20

0

20

40

60

80

100


Aver

age

%

On budget

Under budget by 2%-5%Under budget by 6%-10%Under budget by 11%-15%

Over budget by 2%-5% Mean

Perc

enta

ge

11


Market entry and exit

The two main practice areas in which law firms are looking to increase their investments are M&A and corporate advisory and insurance. Employment, workplace and OHS and insurance are the two areas most likely to see a reduction in investment.

30 3027 27 27

2320

17 17 1713

10 10

307 7 3

10

0

10

20

30

40Planning to enter/significantly grow investment

Planning to exit/significantly reduce investment

Perc

enta

ge

FY15 business priorities

12


Revenue predictions

Changes in revenue over the next 6 months by location

Revenue expectations have improved this wave across UK/Europe, Brisbane, Melbourne and Perth. Sydney and Canberra are expected to experience a revenue decline.

75

100

71 70

35

57

76

54

38

52

29

4738

22

-13 -1320

0

20

40

60

80

100

Q4 FY14 Q1 FY15 Q4 FY14 Q1 FY15 Q4 FY14 Q1 FY15 Q4 FY14 Q1 FY15 Q4 FY14 Q1 FY15 Q4 FY14 Q1 FY15 Q4 FY14 Q1 FY15 Q4 FY14 Q1 FY15

UK / Europe Asia Brisbane Sydney Melbourne Perth Canberra Adelaide

Net

% (i

ncre

asin

g -d

ecre

asin

g)

Changes in revenue over the next 6 months by practice area

Revenue expectations have shown the strongest gains for banking and finance, competition, consumer law and trade practices and other general commercial work.

6367 67

56 52 56

43 41

25

40

2836

4133

23

33

0

20

40

60

80

100

Q4 FY14 Q1 FY15 Q4 FY14 Q1 FY15 Q4 FY14 Q1 FY15 Q4 FY14 Q1 FY15 Q4 FY14 Q1 FY15 Q4 FY14 Q1 FY15 Q4 FY14 Q1 FY15 Q4 FY14 Q1 FY15

Construction,engineering and

major infrastructure

Employment,workplace and

OH&S

M&A and corporateadvisory

Insurance Banking andfinance

Other generalcommercial work

IT, telecoms andmedia

Competition,consumer law and

trade practices

Net

% (i

ncre

asin

g -d

ecre

asin

g)

13


Changes in revenue over the next 6 months by practice area cont.

Revenue expectations in insolvency and restructuring have decreased significantly this wave, likely due to the improved perceptions of business conditions. Revenue expectations in Government and litigation and dispute resolution have also decreased this wave.

33 32 31 3143

2819 22

39

2013 9

41

-420

0

20

40

60

80

100

Q4 FY14 Q1 FY15 Q4 FY14 Q1 FY15 Q4 FY14 Q1 FY15 Q4 FY14 Q1 FY15 Q4 FY14 Q1 FY15 Q4 FY14 Q1 FY15 Q4 FY14 Q1 FY15

Intellectual property Property, environmentand planning

Government Taxation Litigation and disputeresolution

Energy and resources Insolvency andrestructuring

Net

% (i

ncre

asin

g -d

ecre

asin

g)

14


Realised rates and fee structures

Expected changes in realised rates over the next 6 and 12 months

Firms are expecting realised rates to increase by 0.8% in the next 6 months, and to increase to 1.1% in 12 months time.

0.7 0.81.4 1.1

Q4 FY14 Q1 FY15 Q4 FY14 Q1 FY15

In the next 6 months (as compared to the last 6 months) In the next 12 months (as compared to the last 6 months)

Mea

n %

5

0

Percentage of revenue generated using alternative price structures

On average 28% of firm revenues come from alternative price structures, a figure which is expected to increase to 33% over the next 12 months.

321 10

3428

28

31

1728

28.132.6

0.0

10.0

20.0

30.0

40.0

50.0

0

20

40

60

80

100

At the moment Likely to be in 12 months' time

Mea

n %

Between 45% and 59%

Between 30% and 44%

Between 15% and 29%

Between 1% and 14%

0%

Average percent

Perc

enta

ge

15


Expense and profitability predictions

Changes in expenses over the next 6 months

Staff training and development joins marketing and business development and IT hardware and software as the three primary areas of expected expense growth over the next 6 months. Firms also expect telecommunications and professional indemnity insurance expenses to decrease the most over the next 6 months.

35 37 3933

10

27

10

7 6-

--13

-26-20

-3

-20

40

20

0

20

40

60


Marketing andbusiness development

IT hardware andsoftware

Staff training anddevelopment

Occupancy Library and knowledgemanagement

Telecommunications Professional indemnityinsurance

Net

% (i

ncre

asin

g -d

ecre

asin

g)

Changes in staffing over the next 6 months

The majority of law firms indicate that partner and senior associate numbers are likely to grow at a slower rate over the next 6 months.

23

7

50

13

39

13

3950

-10 -7

-32-23

10 7

40

20

0

20

40

60


Equity partnernumbers

Fixed share / salarypartner numbers

Senior Associates /senior lawyers (4th

year+)

Junior lawyer numbers (Graduates – 3rd year)

Shared service staffnumbers

Secretarial and adminstaff numbers

Paralegals

Net

% (i

ncre

asin

g -d

ecre

asin

g)

16


Change in operating margins over the next 6 months

The proportion of firms who expect operating margins to increase for the next 6 months is lower compared to previous wave.

3327

0

20

40

Q4 FY14 Q1 FY15

Your firm's forecast for operating margins for the next 6 months

Net

% (i

ncre

asin

g -d

ecre

asin

g)

17


Business process efficiencies

Are clients’ putting more pressure for law firms to use LPO?

2 in 5 law firms believe that there is growing pressure from their clients to use LPOs. This is more evident among top-tier firms.

4063

32

37

38

36

23 32

0

20

40

60

80

100


Perc

enta

ge

Disagree/StronglyDisagree

Neutral

Agree/Strongly Agree

Effect of growth in LPOs on operating margin over the next 12 months

Majority of firms do not believe the growth in LPOs will affect their operating margins over the next 12 months.

18 14 19

82 86 81

0

20

40

60

80

100


None

Decrease

Perc

enta

ge

18


Provision of non-legal services

Provision of non-legal services

Approximately 1 in 2 law firms have diversified their offering to provide non-legal services, a trend that is more prevalent among top-tier firms.

5325

64

4775

36

0

20

40

60

80

100

120


Yes

No

Perc

enta

ge

Non-legal services - percentage of revenue

Non-legal services still only accounts for 1-2% of overall firm revenue.

1725

13

8 13

25

50

13

17

25

2525

25

8 13

2.0

1.3

2.4

0.0

1.0

2.0

3.0

4.0

5.0

0

20

40

60

80

100


Mea

n %

10% or more

7.5%-less than 10%

5%-less than 7.5%

2.5%-less than 5%

1%-less than 2.5%

0.5%-less than 1%

0.25%-less than 0.5%

Less than 0.25%

Mean

Perc

enta

ge

19


Potential revenue from non-legal services

2 in 5 firms expect revenue from non-legal services to increase in 12 months time, and 3 in 5 firms believe it will increase in the next 2 years.

6238

3854

8

38.5

61.5

100

80

60

40

20

20

40

60

80

100

80

60

40

20

0

20

40

60

80Likely to be in 12 months time Likely to be in 2 years time

Increase Increase significantly Decrease Decrease significantly Remain the same

36

25

11

32

32

18

21

21

39

7

18

18

11

4 4 4

24

29

39


10

20

30

40

50

Mean %

More than 75%

Between 60% and74%

Between 45% and59%

Between 30% and44%

Between 15% and29%

Between 1% and14%

0%

Average percent

Net % (increase – decrease)

Perc

enta

ge

Perc

enta

ge

20


Competition from non-traditional (alternative business model) law firms

Competition from non-traditional (alternative business model) law firms (segmented by tier)

The proportion of firms who have competed for work against non-traditional law firms are similar across top-tier and mid-tier firms.

77 79 77

23 20 24

0

20

40

60

80

100


Yes

NoPerc

enta

ge

Frequency of competition from non-traditional (alternative business model) law firms

Advent Balance and Bespoke Law are the two firms which compete most frequently with traditional law firms.

40

80 7550

40

2550

20 20

0

20

40

60

80

100

AdventBalance Bespoke Law Plexus Other

Somewhat frequently

Rarely

Never / Almost never

Perc

enta

ge

21


Attitudes and behaviour toward philanthropy

Firms practising in the not-for-profit sector (segmented by tier)

Mid-tier firms are more likely to operate on a normal fee-paying basis in the not-for-profit sector.

87

67

50

7 3

100

62.5

37.5

0 0

81.8

68.2

54.6

9.14.6

0

10

20

30

40

50

60

70

80

90

100

Yes, pro bono Yes, at reduced fees Yes, on a normal fee-payingbasis

No, but the firm providesmonetary donations and other

non-legal related support

No


Perc

enta

ge

Firms practising in the not-for-profit sector by practice area

The main practice areas in which law firms provide advice to not-for-profit organisations are employment, workplace and OH&S, litigation and dispute resolution and other general commercial work.

.

70 67 67 63 5948 41 37

0

10

20

30

40

50

60

70

80

Employment,workplace and

OH&S

Litigation anddispute resolution

Other generalcommercial work

Property,environment and

planning

Regulation andcompliance

Intellectualproperty

M&A andcorporate advisory

IT, telecoms andmedia

Perc

enta

ge

22


Firms practising in the not-for-profit sector by practice area cont.

The practice areas in which law firms are least likely to provide advice to not-for-profit organisations are Insolvency and restructuring and energy and resources.

3333 30 26 22 15 7 7

0

10

20

30

40

50

60

70

80

Banking andfinance

Taxation Competition,consumer law and

trade practices

Government Construction,engineering and

majorinfrastructure

Insurance Energy andresources

Insolvency andrestructuring

Perc

enta

ge

Change in practise in not-for-profit sector in the next 12 months

2 in 5 law firms expect to increase the amount of work they conduct for the not-for-profit sector in the next 12 months.

59

88

47

1926

2213

26

0

20

40

60

80

100


Increase by 5%-15%

Increase by 1%-4%

Stay the same

Perc

enta

ge

23


Reasons for practising in not-for-profit sector

Whilst philanthropy and staff motivation are the primary drivers for participation in the not-for-profit sector, half the law firms in the study expect their involvement to derive a commercial benefit.

9381

5241

150

10

20

30

40

50

60

70

80

90

100

To give back to the community To engage and motivate ourstaff

To build networks andrelationships that may

potentially lead to commercialreturns

To differentiate our firm'sbrand to prospective clients

To directly increase ourrevenue

Perc

enta

ge

Effect of global financial crisis on the attractiveness of serving the not-for-profit sector

The attractiveness of serving the not-for-profit sector has not been affected by the global financial crisis (87% of law firms were not affected).

7 9

87 100 82

7 9

0

20

40

60

80

100


Yes, the sector hasbecome more attractive

About the same

Yes, the sector hasbecome less attractive

Perc

enta

ge

24


Further information

For further insights or information, please contact:

Marc Totaro, National Manager Professional Services

Mobile: 0477 739 315 Phone: +61 2 9303 1940 Email: [email protected] Web: commbank.com.au/legalmarketpulse

For media inquiries, please contact:

Liz Lovett, Public Relations Advisor Phone: +61 2 9303 1403 Email: [email protected]

Things to know before you Can: This report is published solely for information purposes. As this report has been prepared without considering your objectives, financial situation or needs, you should before acting on the information in this report, consider its appropriateness to your circumstances and if necessary seek the appropriate professional advice. The information in this report is based on the views of large and mid-sized law firms across Australia and any opinions, conclusions or recommendations are reasonably held or made, based on the information available at the time of its compilation, but no representation or warranty, either expressed or implied, is made or provided as to the accuracy, reliability or completeness of any statement made in this report. Commonwealth Bank of Australia ABN 48 123 123 124

About Beaton Research + Consulting

Beaton Research + Consulting is a full-service research firm which offers a full range of solutions for professional services firms, financial services firms and associations. Their expertise includes benchmarking, thought leadership, brand solutions, customised solutions and client satisfaction.

From brief to delivery, they apply a strategic filter to all they do, ensuring that each engagement is on target to answer your critical questions – and sometimes to answer those you didn’t realise needed asking.

commonwealth bank legal market pulse report. · areas, health and education. the law firms surveyed...

Documents