Today, Spend Matters welcomes back our resident legal Spend Management expert, Rees Morrison.
Educate yourself and your peers in procurement. You can get the first edition of the 60-page global benchmarking report from General Counsel Metrics, LLC, if you click here to submit your company's data. You'll need to know the number of lawyers, paralegals and all others in your legal department as well as last year's internal legal budget, external counsel spend, and your company's revenue.
The first release -- followed by new monthly releases during the summer and fall as more law departments take part -- covers 455 law departments from 35 countries and across 19 industries. At the end of 2009, these departments had an average of 27.9 lawyers and 21.5 other legal staff. In total, they had 12,700 lawyers and 9,800 other legal staff. The smallest quarter of the group, roughly 110 departments, reported from one to three lawyers. The next larger quarter reported more than three lawyers but less than eight. The next quarter had 8-25 lawyers, while the largest had from 26 lawyers to well more than 500.
The participants' total legal spend in 2009 was an astounding $11.8 billion, in support of their aggregate corporate revenue of $3 trillion.
One quarter of the participants reported revenue between nothing (nonprofits) and $200 million. One quarter reported revenue greater than $200 million but less than $1.5 billion. In the third category, companies had revenue between $1.5 billion and $6.5 billion, and the remaining 90 or so companies reported revenue above $6.5 billion.
Understand the comparative spending patterns of your company's legal function. Study data from 500 other law departments. Please take part in this benchmark study by clicking here for the confidential, online survey that asks for fundamental 2009 metrics of staff and spending.