Law firms are lagging behind when it comes to taking a view on the competition. Not only is management at the back of the  class, law firm leaders are not overly impressed by their firms' efforts to gather business intelligence. The findings come in a new report which says law firms have significant work to do to build competitive intelligence (CI) capabilities to keep pace with the competitive and dynamic industry law has become. The report, by Acritas, says that whilst 'competitive intelligence has come a long way since the concept was first introduced to law firms in the early 90’s, the industry’s progression, though, is slow – if not stunted. Interest in and demand for data is heightened in today’s legal environment, yet delivery of valuable data-driven insights is not.'

Effectiveness 

Leaders rate the effectiveness of their current CI resources just 6.4 out of 10. Furthermore only eight per cent consider their CI function to be highly effective in helping the firm make better, more informed decisions. Meanwhile 80 per cent of law firms’ CI departments are more reactive than proactive, and more tactical than strategic, the research has found. Whilst 82 per cent of firms interviewed have headcount dedicated to CI, only 52 per cent have a formal CI function. However, one in three firms (37 per cent) plan to increase the size of their CI group in the coming year whilst three in four firms plan to make changes to CI in the next 12 months.