For decades, law firms relied on reputation, relationships, and billable hours to win business. But in 2025, general counsels (GCs) are steering the wheel—and the rules have changed.
If you’re a senior lawyer looking to stay competitive or planning a lateral move, understanding how GCs now assess firms is no longer optional—it’s essential.
Legal Spend Is Flat—But Expectations Are Up
According to the 2025 Chief Legal Officer Survey by the Association of Corporate Counsel (ACC), 65% of GCs said they plan to maintain or reduce outside counsel spend this year, even as workloads continue to rise.
That’s forcing in-house teams to be more selective—and strategic—about who they hire. Gone are the days of sending work to the biggest name on the shortlist. Now, it’s about efficiency, alignment, and results.
Fixed Fees and AFA Requests Are at a 10-Year High
More than 57% of GCs now prefer fixed-fee or alternative fee arrangements (AFAs) over traditional hourly billing, per a recent Thomson Reuters Legal Department Operations Index.
And it’s not just about cost control. GCs report that AFAs:
• Improve predictability for internal finance teams
• Force law firms to be more efficient
• Encourage a collaborative—not transactional—relationship
If you’re a partner accustomed to billing hourly, being flexible with pricing models may now be a competitive edge.
Business Acumen Now Outweighs Legal Prowess
In a 2024 survey by EY Law and the Harvard Law School Center on the Legal Profession, GCs ranked “commercial understanding” as more important than legal expertise when selecting external counsel.
What does that mean in practice?
• Lawyers who understand the client’s business model and risk appetite
• Teams who tailor advice to strategic goals, not just legal theory
• Partners who speak the language of the C-suite, not just the courtroom
DEI, Tech, and Data-Readiness Now Influence Panel Selections
More legal departments are pushing firms to meet diversity benchmarks, use AI-enabled tools, and deliver clear data reporting on matter progress and spend.
According to Gartner, 74% of legal departments in large U.S. corporations now require DEI metrics in outside counsel reporting.
Translation: Your firm’s ability to showcase operational transparency, inclusiveness, and innovation matters more than ever.
So, What Can Senior Lawyers Do?
If you’re considering a lateral move—or just want to future-proof your practice—these are the new table stakes:
• Brush up on AFA structuring and how your practice can deliver measurable ROI
• Learn to pitch like a strategist, not just a litigator or dealmaker
• Build visibility with GCs by offering commercial insights, not just legal updates
Today, you’re not just selling legal services. You’re selling results, predictability, and partnership.
Sources:
Association of Corporate Counsel 2025 CLO Survey
Thomson Reuters 2025 Legal Department Operations Index
EY Law and Harvard Law School Center on the Legal Profession (2024)
Gartner Legal Department Diversity Trends (2024)
