One thing is for sure. Top legal decision makers see a surging workload. They see their backlog climbing. And they are being asked a lot of questions. BTI conducted 2 flash surveys to get a read on what they are thinking and what to expect on everything from risk, to data privacy, to M&A. Here are 7 key insights:

1. 35% to 40% of companies report business unit leaders are flooding their corporate counsel with questions about:

• How to provide a safe environment for employees

• Guidelines for closures

• Language, procedures, and process to talk about closures

• What to do with employees at work who are clearly or may be ill

2. Data privacy needs are surging daily

• Clients see unintended employee mistakes as one of the most overlooked and underappreciated risks in the data privacy and cybersecurity world – and now companies are opening the floodgates to remote workers – a good thing – but not without this under appreciate risk

• These decision makers point out there are no extensions for CCPA and GDPR

Look for our new report BTI Cybersecurity & Data Privacy 2020 tomorrow, March 19th. Learn the 109 law firms clients single out as leading the market, detailed client needs and expectations, hiring plans, and outlook for 7 key segments in this pivotal market.

3. Some courts have slowed or are closing – but clients are busy dealing with current caseloads and planning for the new. They are expecting a surge in:

a.      Increased gender equality claims as work from home combined with school closures and care giving puts new pressures on work life balance

b.      Employee claims around safeguarding health

c.      Securities claims

d.      Contract performance

e.      Supply disputes

4. 15% more clients plan to use AFAs than last year as a tool to manage the expected case load

5. M&A clients are looking at different strategies from 3 months ago:

• 30% of clients have slowed their M&A activities

• 40% put their M&A activities on temporary hold

• 20% are not engaging in mergers and acquisitions at all

• 10% of companies are hunting for deals at these valuations

6. Clients see tempered but increased risk

Clients are keeping a cool head. When asked to measure risk on a 1 to 5 scale, here is how things play out. Risk is up:

• 11% from a year ago

• 8% from 3 months ago

The increased risk is attributable to unexpected outcomes stemming from Coronavirus and volatility in the capital markets.

7. Faster decision making

Higher risk usually means slower approvals and decision making. But clients are acting with more gravitas and speed as the pandemic gains momentum. Clients don’t want to be behind this curve.

Faster decision making and minimally higher perceived risk gives you even more reason to stay in touch with your clients. Be helpful, educational, caring, and brief. We also recommend you learn to love video calls. They may be here a while – even when this finally passes us by.

Be safe and healthy.

MBR

COVID-19 is scary. The impacts and outcomes are far from certain.

We may be looking at a case of the devil you know is worse than the devil you don’t. Top legal decision makers are staring at key issues causing sleepless nights—not including coronavirus. They must be serious. And you can help. I will discuss each below:

Cybersecurity/Data Privacy Is Tops for the 2nd Year in a Row

The twin demands of GDPR and CCPA beat all. Clients are acutely aware they are subject to these requirements even if they think they have no material business in either jurisdiction. Clients without direct exposure expect either their customers or their supply chain, distributors, and customers to show proof of compliance. Everyone is worried about direct, indirect, or vicarious liability.

These same clients are equally worried about individual states passing copycat legislation based on CCPA—making compliance virtually impossible on a national and international scale. And, there is the ever-present worry of breaches and hacks.

Risk is high, cost of failure is high, and regulations are new, evolving, and growing. At the same time, clients say there just aren’t enough experienced attorneys to help them through—this is and will be a core need.

You can learn all the details—and the 109 law firms leading this market—in BTI’s about to released report, BTI Cybersecurity & Data Privacy 2020: Leading-Edge Insight & Strategy for Law Firms, detailing clients’ needs, priorities, and expectations of law firms and singling out the law firms best in 7 key areas of cybersecurity/data privacy. Click here to learn more.

Regulatory Pressure

The regulatory sky is falling.

We couldn’t find an industry where these clients didn’t see changing, new, evolving, or reinterpreted regulations in some material part of the business. The biggest concerns are rooted in workplace issues, data privacy, financial disclosure, approvals for products and infrastructure, and a host of industry-specific issues. Again, almost no industry is immune.

The regulatory-induced insomnia comes from the difficulty in defining compliance requirements with precision due to policy changes at the agencies involved—or they come from areas where compliance requirements are unclear or undeveloped.

Top legal decision makers believe the rules have changed or they are flying in the dark because there is no guidance. We recommend every law firm put their regulatory specialists in front of the relevant clients to talk things through. You will provide some peace of mind—and are likely to pick up new business.

Workload/Less Staff

All but the very largest clients have fewer in-house attorneys than last year, making this the 2nd drop in headcount in as many years. Clients have fewer resources as they face more complexity and the new burdens from COVID-19. Clients either can’t hire at all or can’t hire fast enough. They are looking to reduce bottlenecks. Some ideas include:

• Loaned staff at reduced rates

• Non partner track attorneys

• Contract attorneys through their law firms

• Using consultants instead of attorneys—especially in labor and cybersecurity/data privacy

• AFAs for taking on all the work in certain areas

Being Blindsided

Last year was the first time I have ever heard a top legal decision maker talk about being blindsided as a source of insomnia. I heard it again this year—but only about ½ as much. The cumulative impact and seemingly unpredictable nature of data privacy regulations, broader regulatory issues, and the emergence of the coronavirus set up a confluence of factors where even the smartest person in the room can be blindsided.

Coronavirus

Top legal decision makers are currently assessing the impact and full meaning of the COVID-19 situation. Few are losing sleep over it, unless they are working nights due to the extra workload the outbreak creates. This only fuels the workload issues I discuss above.

As is so often said in Mission: Impossible

Your mission should you decide to accept it: make sure your clients aren’t blindsided and sleep better at night. You have the best training in the world—you have the power to do this.

To more sleep for clients and more business.

Be safe and healthy.

MBR