A N A L Y Z E | C O M P A R E | D E C I D E | A C TA N A L Y Z E | C O M P A R E | D E C I D E | A C T
LAWYERS +MARKETERS +MONEY
Webinar
Kovalan + Scalzi + Fuller14 March 2019
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A L M L E G A L
I N T E L L I G E N C E
Steve KovalanDirector of Research
ALM Intelligence
Jennifer Johnson ScalziFounder & CEOCalibrate Legal
Patrick FullerVice President, Legal
ALM Intelligence
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Methodology and Overview of Survey Respondents M E T H O D O L O G Y
Survey respondents represented every corner of marketing and business development departments
Number of respondents by function
Country of Origin
Percentage of respondents
Northeast33%
West17%
South35%
Midwest15%
United States84%
Canada15%
Other1%
US Region of Origin
Percentage of US respondents
291
233
144
97
81
60
Business Development
Marketing
Marketing & Business Development
Marketing Operations
Communications / Media Relations
Other
Number of respondents who hold a “first chair” role within their firms marketing and business development department.
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2%
67%
1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Increasing complexity is driving demand for a more structured approach to business development
Managing a law firm today is significantly more complex than it was three decades agoThe number of lawyers at the median Am Law 100 firm
The median Am Law 100 firm has more than
doubled in size
Firms are managing significantly larger revenue streamsPercentage of Am Law firms earning more than $500 million in annual revenue
1995: 55%
2018: 25%
The median firm in 2018 had 18 offices across three continents
Am Law firms earned more than $1bn in revenue last year
Firms are more geographically spreadPercentage of lawyers in home office at median firm
19952018
Am Law firms that experienced Y-o-Y revenue growth of less than 1%
High Volatility: 25%
Moderate: 19%
Some : 19%
Am Law Firms Experiencing
Revenue Volatility
Law firms must manage unpredictable revenue streams
Percentage of firms by revenue volatility
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A L M
L E G A L
I N T E L L I G E N C E
Percentage of total firm wide revenues spent on marketing &
business development0.5% 5.0%2.1%
High End(90 Percentile)
Median Firm
Low End(10 Percentile)
Ratio of lawyers to marketing & business development professionals 11 4320
High End(90 Percentile)
Median Firm
Low End(10 Percentile)
Allocation of Marketing & Business Development Budget
Share of budget
Cost and Return on Investment
Cost of marketing and business development departments
At Most Firms, Marketing and Business Development Budgets are Increasing
$16,000
$34,000
Cost Per Lawyer Cost Per Partner
The average estimated return on investment from $1 million of marketing and business development spend for an
Am Law 200 firm
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I N T E L L I G E N C EAt Most Firms, Marketing and Business Development Budgets are Increasing
Allocation of Marketing & Business Development Budget
Share of Budget
17%
17%
15%
15%
10%
6%
6%
5%
5%
External events
Staff salaries
New business development
Existing client development
Branding
Existing technology
New technology deployments
Business developmentcoaching
Retreats and internal events
dedicated to direct forms of business development
dedicated to technology investments
Marketing and business development budgets are rising
Percentage of Firms Reporting
of firms reported declining marketing and business development budgets
of firms reported increasing marketing and business development budgets
Budget increases for the past fiscal year ranged from 1% to 20%
36% of budgets stayed the same
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Chiefs tend to have more than a decade of experience in legal marketing – although much less at their own firm C H I E F R O L E S
Years of ExperienceAverage for chief roles
Number of Direct and Indirect ReportsPercent of law firms reporting
26
16
64
Years of ProfessionalExperience Regardless of
Industry
Years of Legal MarketingExperience
Years At Current Firm Years in Current Position
1 to 523%
6 to 1020%11 to 25
36%
26 to 10022%
Is the firm’s senior-most marketing / business development professional a member of the firm’s executive committee?Percent of law firms reporting
are not a member of the firm’s executive committee
are a non-voting member of the firm’s executive
committee are a voting member of the firm’s
executive committee
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A L M
L E G A L
I N T E L L I G E N C E
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
1 - 99Lawyers
100 - 249Lawyers
250 - 499Lawyers
500 - 749Lawyers
750 - 999Lawyers
1,000+Lawyers
There is a Wide Range in Compensation for Chief Roles Depending on the Size of Firm
C H I E F R O L E S
Salary and Bonus For Chief Roles
In US dollars
$194k$260k
$319k
$463k$444k
$503k
$36 $69k$105k $125k
$29k$23k
Average Salary
Average Bonus
Average Comp
Bonu
s R
ange
Sala
ry R
ange
Maximum
Minimum
Average
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1
2
3
Chief Compensation Ranges Widely on a Per Lawyer or Per Partner Basis
C H I E F R O L E S
Salary and Bonus for Chief Roles
In US dollars
Chief Total Compensation Per Million Dollars of Total Firm Revenue $525 $2,258$1,291
High End(90 Percentile)
Median Firm
Low End(10 Percentile)
$406 $1,841$867
$773 $4,121$1,780
Chief Total CompensationPer Lawyer
Chief Total Compensation Per Partner
the average cost of a chief’s total compensation per lawyer
the average cost of a chief’s total compensation per partner
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I N T E L L I G E N C EWomen Hold a Majority of the Chief Roles – This is Particularly True at Smaller FirmsC H I E F R O L E S
Percentage of Men and Women in Chief Roles
By firm size
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
Women Men
$307k
$430k
$50k $75k
Bonu
s R
ange
Sala
ry R
ange
Maximum
Minimum
Average
Percentage of chief marketing and business development roles held by women
Salary and Bonus for Chief Roles
In US dollars
Percentage of Women Chiefs
Percentage of Men Chiefs
94%
64%53% 54%
6%
36%47% 46%
1 to 249 250 to 499 500 to 999 1,000 and overLawyers Lawyers Lawyers Lawyers
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I N T E L L I G E N C E Women Hold 70% of Director Roles D I R E C T O R S
72%66%
77%69%
77% 74%
28%34%
23%31%
23% 26%
1-99Total
Lawyers
1 - 249Lawyers
250 - 500Lawyers
500 - 999Lawyers
500 - 1,000Lawyers
1,000+Lawyers
Percentage of Director roles in marketing and business development departments are held by women
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
Female Male
$170k$182k
$18k $20k
Bonu
s R
ange
Sala
ry R
ange
Maximum
Minimum
Average
Percentage of Men and Women in Director RolesBy firm size
Salary + Bonus for Director RolesIn thousands of dollars
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$0
$50
$100
$150
$200
$250
Female Male
Women Hold 85% of Manager Roles, Although They are Better Represented at Larger FirmsM A N A G E R S
Percentage of manager roles in marketing and business development
departments are held by women
$122k
$131k
$8k $11k
Bonu
s Ra
nge
Sala
ry R
ange
Maximum
Minimum
Average
Percentage of Men and Women in Manager RolesBy firm size
Salary + Bonus for Manager RolesIn thousands of dollars
95% 92%84% 89%
81% 75%
5% 8%16% 11%
19% 25%
1-99Total
Lawyers
1 - 249Lawyers
250 - 500Lawyers
500 - 999Lawyers
500 -1,000
Lawyers
1,000+Lawyers
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• Search by Region(s)• Gender(s)• Title(s)• Firm Size(s)• Years of Experience
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I N T E L L I G E N C ESalary Range & Your Benchmark
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I N T E L L I G E N C EReporting Structure & Staff Ratio Benchmarking
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Contact Information
• Rob Alston, Sr. Dir. of Business Development• [email protected]
• Kevin Fox, Account Manager• [email protected]
• Jeff Irving, Account Manager• [email protected]
Final Thoughts & Comments
• Jennifer Johnson Scalzi• CEO & Founder, Calibrate Legal• [email protected]