1

NETWORKS FOR COUNSEL

Online Networking in the Legal Community

Conducted by

June 2008

2

Context and Methodology

The Networks for Counsel study investigated three core sets of questions:1. How and why do lawyers network? What challenges are they finding?2. How much networking is done online vs. offline? Why? Is it for personal or professional reasons?3. What do they expect from an online professional network? What attributes are critical to active use? Does this

differ by role (Private Practice vs. Corporate Counsel?)

Study used a broad-based sample to ensure ability to segment:• A representative sample of 673 lawyers – 224 Private Practice attorneys and 449 Corporate Counsel, enabling

comparisons between these two groups• Global representation across 22 countries• Broad base of industries, with Financial Services, Manufacturing and Healthcare the top three• Range of company sizes from 100 to greater than 10,000 staff• Wide distribution of age and responsibility, with the greatest proportion in the 35-45 age range• Majority of respondents either decision makers or influencers

Blind research methodology used• Conducted by Leader Networks, an expert in social network and community building• Sponsored by LexisNexis Martindale-Hubbell

3

Key Findings

There is a clear and compelling need for ongoing networking and relationship maintenance among lawyers• To hire counsel• To find answers on key questions• To engage on topics of interest

However, in-person networking is difficult to sustain and requires high cost, effort and diligence • Hard for attorneys to maintain relationships• In-person networking is not the solution

Current online networks are limited, but attorneys look to the future• Majority of attorneys use online networks • Growing usage of online networks for professional reasons• While not first adopters, neither are lawyers lagging the general population

Lawyers see a wide range of benefits to online networks• Quicker and easier collaboration with fellow attorneys• More accurate selection of counsel • Access to exclusive content and discussions

Current online networks are delivering for lawyers • Looking for a private, exclusive network

Martindale-Hubbell seen as most likely to deliver this network• Consistent among both Corporate Counsel and Private Practice lawyers

Expect online social networks to have a significant impact on the industry in the next 5 years

4

Networking Is Critical To The Legal Industry

2

8

8

15

26

28

55

59

0 10 20 30 40 50 60 70

Blogging, listservs, social media tools

Publishing

Responding to RFPs/RFIs

Conferences and seminars

Alumni relationships

In person networking events

Peer referral or recommendation

Client referral or recommendation

Percent

Met

ho

d

What is the most effective method currently in use for finding new business?

N (PP) =224

• Top 4 out of 5 most effective means to get business use networking• Other sources trail far behind

•This question was asked of Private Practice attorneys only•Respondents could select up to two responses

5

However, Networking is Becoming Increasingly Difficult

• Vast majority agree it is harder to stay connected with my colleagues and peers• Time and resources are ongoing and increasing pressures within the legal industry

N (CC) = 449 N (PP) =224

4

9

1518

27

23

54

8

16

24 24

20

4

0

5

10

15

20

25

30

35

Strongly Disagree

6 5 Neutral 3 2 Strongly Agree

Perc

ent

Its harder to stay connected with my colleagues and peers

Corporate CounselPrivate Practice

1

5

9

2325

29

8

25

9

25

29

21

9

0

5

10

15

20

25

30

35

Strongly Disagree

6 5 Neutral 3 2 Strongly Agree

Perc

ent

I don’t have the time or resources to leverage current opportunities to network with my

peers

Corporate CounselPrivate Practice

6

In-Person Networking Is Not The Solution

• 60% of Corporate Counsel and Private Practice attorneys report difficulty connecting with colleagues onsite at conferences

• Difficulties in networking internationally of growing importance given globalization within the legal profession

N (CC) = 449 N (PP) =224

24

11

25 2524

9

3 4

10

20

2528

11

0

5

10

15

20

25

30

35

Strongly Disagree

6 5 Neutral 3 2 Strongly Agree

Perc

ent

It's hard to connect with everyone I want or need to at conferences

Corporate CounselPrivate Practice

2 36

31

15

2320

24

7

24

17

28

18

0

5

10

15

20

25

30

35

Strongly Disagree

6 5 Neutral 3 2 Strongly Agree

Perc

ent

Networking internationally is particularly difficult

Corporate CounselPrivate Practice

7

N (CC) = 449 N (PP) =224

48

59

0

10

20

30

40

50

60

70

Corporate Counsel Private PracticeRole

Are you a member of an online social network such as LinkedIn, Plaxo, Facebook or MySpace?

(by role)

Yes

67

49

36

0

10

20

30

40

50

60

70

25-35 36-45 46-55+

Perc

ent

Age

Are you a member of an online social network such as LinkedIn, Plaxo, Facebook or MySpace?

(by Age)

Yes

Online Networking Becoming A Clear Option To Connect

• As expected, use of online social networking is strongly correlated with age -- more than 65% of lawyers who are between 25-35 years of age belong to a social network

• Broadscale adoption of social media likely to occur as the more senior population retires and the younger counsel move up the ladder

8

Most Networking Is Still For Personal Reasons

N (CC)=449 N (PP)=224

24

27

30

55

87

0 20 40 60 80 100

Identify new referral sources

Personal hobby or interest

Career advancement

Making new contacts

Keeping in touch with friends

Percent

What do you use your online social network membership for?(all respondents)

• As with the broader population, lawyers tend to network for personal reasons• However, making new contacts and advancing one’s career follow closely

9

N (CC)=449 N (PP)=224

3027

43

36

8

55

0

10

20

30

40

50

60

Personal Professional Both

Perc

ent

Use

Do you use your online social network membership personally or professionally?

(by role)

Corporate CounselPrivate Practice

40

24

31

12

24

33

40

52

36

0

10

20

30

40

50

60

25-35 36-45 46-55+

Perc

ent

Age

Do you use your online social network membership personally or professionally

(by age)

PersonalProfessionalBoth

But Using Online Networks Professionally A Significant Trend

• Use of professional networking increases with age, as expected• Interestingly, Corporate Counsel are over 3x more likely to use their network for professional reasons –

although some of this is driven by the age skew, there appear to be other factors driving the difference

10

Lawyers Clearly See The Benefits of Online Networking

N (CC) = 449

13

13

16

18

18

19

21

26

29

45

46

0 10 20 30 40 50

Ability to link to other attorneys and expand my …

Improves the reliability of information

Increase speed of selection/decision-making

Lower costs of traditional networking

Ability to increase my visibility among peers

Creates a formal and exclusive forum

Accelerate speed of collaboration

Facilitates finding the “right” attorney directly

More quickly identify, evaluate and select

Easier exchange of information/experiences

Access to info I couldn’t get elsewhere

Percent

What are the top advantages of participating in an online legal professional network?

• Online networking offers myriad benefits, including exclusive content, collaboration and quicker selection of counsel

This question was asked only of Corporate Counsel

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But Current Online Networks Are Not Perceived As Very Helpful

N (CC)=449

N (PP)=224

6

18 19

31

20

5

1

8

2124

30

16

1 10

5

10

15

20

25

30

35

No Confidence At All 1

2 3 4 5 6 Extremely Confident 7

What degree of confidence do you have that the professional networks and online communities you belong to can help you do your job more efficiently and cost effectively?

Corporate CounselOutside Counsel

• Counsel have little confidence that their own networks can deliver on the benefits they seek • Less than 10% are very confident that their current networks will help them do their job better

12

N (CC)=449 N (PP)=224

49

14

37

44

14

42

34

18

48

0

10

20

30

40

50

60

Yes No Don't Know

perc

ent

Would you be interested in joining an online professional network specifically designed for

lawyers? (by age)

25-3536-4546-55+

41

14

4548

16

36

0

10

20

30

40

50

60

Yes No Don't Know

Perc

ent

Would you be interested in joining an online professional network designed specifically for

lawyers?(by role)

Corporate CounselPrivate Practice

Bottom Line, Counsel Want a Private Network Just for Lawyers

• More than 40% of all Corporate Counsel and Private Practice attorneys report an interest in joining an online professional network for lawyers

• This is comparable to the percentage of counsel who are currently subscribed to a social network• The size of the “Don’t know” category may indicate a “wait and see” approach as they await an offering

that can deliver on their needs

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The Network Cannot Be “One Size Fits All”

• Corporate Counsel and Private Practice differ significantly in what they want from a legal network• Exclusive content and collaboration are critical to Corporate Counsel• Private Practice attorneys are focused on connections to advance their business• Both seek a “one stop shop” where they can connect

N (CC)=449 N (PP)=224

Which of the following items are most important to Counsel in terms of what an online legal professional network provides?

Private Practice

Corporate Counsel

Peer surveys and quick polls on legal topics and issues 31% 17%

Online discussions with peers and colleagues 29% 24%

Exclusive content such as white papers, reviews, webinars, podcasts and interaction with legal thought leaders 51% 35%

Online CLE courses with peer reviews 33% 33%

Ability to edit one’s online profile and manage ones professional reputation online 16% 33%

Special Interest Group collaboration activities 16% 18%

A confidential peer community that is comprised only of vetted counsel 31% 21%

A one stop experience where I can connect people with the work they do 32% 38%

Information about counsel such as work style, POV, demonstrated expertise 35% 25%

Ability to link to other attorneys and expand my network 41% 54%

14

Martindale-Hubbell Seen As Best Positioned To Deliver This Network

• Martindale-Hubbell is the #1 choice to deliver this network, and is favored equally by Corporate Counsel and Private Practice attorneys

• Startups and small companies are not favored• Significant divergence between Corporate Counsel and Private Practice attorneys on a #2 choice, with the ABA

favored by Private Practice and the ACC by Corporate Counsel

N (CC) = 449 N (PP) =224

01111

36

1213

152121

2528

48

0 10 20 30 40 50 60

ACTAvvo

ESQchatLegal Onramp`

LawyersNowCorporate Legal Exchange …

ThompsonChambers

FindlawGC roundtable

LinkedINGoogle

ACCABA

Lexis Nexis Martindale Hubbell

Percent

Of the organizations listed below which do you believe can best deliver on this value proposition?

The value proposition statement was “An online global legal community where counsel can connect with peers and expand professional referral networks, share information and insights, and access compelling content essential to the business and practice of law.”

Respondents could select up to two responses

15

Online Networks Will Change The Business And Practice Of Law

• A substantial proportion of both Corporate Counsel (43%) and Private Practice attorneys (45%) believe that online networks are somewhat to extremely likely to change the business and practice of law in the next five years.

N (CC)=449 N (PP)=224

5

11

15

2527

12

6

0

5

10

15

20

25

30

No at All Likely 2 3 4 5 6 Extremely Likely

Do you think online networks (i.e., social media) will change the practice and business of law in the next five years? (all respondents)

16

Key Findings

There is a clear and compelling need for ongoing networking and relationship maintenance among lawyers• To hire counsel• To find answers on key questions• To engage on topics of interest

However, in-person networking is difficult to sustain and requires high cost, effort and diligence • Hard for attorneys to maintain relationships• In-person networking is not the solution

Current online networks are limited, but attorneys look to the future• Majority of attorneys use online networks • Growing usage of online networks for professional reasons• While not first adopters, neither are lawyers lagging the general population

Lawyers see a wide range of benefits to online networks• Quicker and easier collaboration with fellow attorneys• More accurate selection of counsel • Access to exclusive content and discussions

Current online networks are delivering for lawyers • Looking for a private, exclusive network

Martindale-Hubbell seen as most likely to deliver this network• Consistent among both Corporate Counsel and Private Practice lawyers

Expect online social networks to have a significant impact on the industry in the next 5 years

17

For more information about this study “Networks for Counsel”

Contact:

Vanessa DiMauroPresident, Leader Networksvdimauro@leadernetworks.com617-484-0778http://www.leadernetworks.com