JLL’s Global Chief Legal Officer, Alan K. Tse, wanted to introduce a more competitive and streamlined process for engaging outside counsel in order to control and reduce external legal spend. He knew that generic procurement tools were not the answer, so he worked with his Head of Litigation and Legal Ops to find a best of breed tech solution that was tailored for engaging outside law firms, would help drive more AFAs, allow for a standardized evaluation process and would be easy for JLL’s attorneys to use. It also had to deliver a clear ROI.
The process of engaging outside counsel was not only time consuming and inefficient, it suffered from a lack of transparency and competition. Even though JLL had negotiated competitive firm hourly rates, it was always unclear what the total cost would be by the time the matter was complete. Traditional hourly billing made it difficult to tightly manage the litigation budget.
JLL implemented PERSUIT’s competitive bidding platform. By doing so, JLL was able to formally evaluate its top-tier preferred firms in a mini-RFP process, obtain fixed fee proposals within a matter of days, and leverage a one-hour auto-negotiation period on a matter-by-matter basis. During the auto-negotiation period, firms were able to see their price ranking in PERSUIT and could then revise their prices to improve the competitiveness of their proposals.
“The traditional approach of selecting a firm was based on the in-house counsel’s prior experience, or through numerous phone calls or emails. Competitive bidding was never really included, and none of the traditional approaches were efficient. The new standard is to leverage buying data, and that is what PERSUIT provides. The platform allows the competitive bidding, to establish a more reasonable budget. It’s worth its value.”
Director, Legal Operations, JLL
During a one-hour auto-negotiation period, there were 6 combined price revisions, with some firms reducing their total proposed fees by as much as $171,000 (41%). This process saved JLL $103,000, calculated as the difference between the accepted price and the initial market average price.
“Use of the platform is very straightforward. It allows us to be more efficient in firm selection and establishing a budget, and with the reverse auction, PERSUIT definitely delivers on cost savings.”
Litigation Director and Interim General Counsel, Americas, JLL