That revolutionary idea is being forced on blue-ribbon law firms by one of their once-coziest and most lucrative corporate clients, according to the New York Law Journal.
GlaxoSmithKlein, the pharmaceutical giant, is moving to an electronic auction to select law firms to handle some of its business.
The procedures, which At GlaxoSmithKline calls “auctions,” typically, draw bids from a half dozen firms. They are given access to the low bidder, without identifying the firm. Each participant then is given 24 hours to decide whether to change their offer.
“There have been times we’ve had over 50 or 60 [different] bids,” an official said.
The company doesn’t always select the lowest offer, but looks for a quality firm with the best chance of success. The firms not chosen are given feedback on what they could improve, according to the company.
If a market giant like GlaxoSmithKline wants to make sure it’s getting its money’s worth for lawyers, why can’t consumers get the same good deal?
Although the British legal system is changing, it still, like the American system fails to encourage innovation over the internet, fails to make service to the average consumer of legal services a key goal, and has failed to foster quick response to a changing marketplace. The lawyers’ guilds still control both the profession, and as a result, the marketplace for legal services. Bar groups say they do it to protect consumers, but more and more critics – many academics and attorneys themselves — say lawyers are simply attempting to keep their business monopoly.
Glaxo is certainly not a typical consumer. The British giant recently announced it would cut 100 million Euros after taking in 13.4 billion Euros in a recent profit reporting period.
GSK is the Official Laboratory Services Provider for the London 2012 Olympic under a groundbreaking partnership with King’s College London to provide facilities and equipment to enable expert analysis for the World Anti-Doping Agency (WADA) during the Games.
The company says it is committed to making the London games “the fairest Games in history. As a great British company, we are proud to be supporting the spirit of fair play for London 2012 through science.”
Glaxo has launched a heavy media ad campaign featuring its Olympics role, built around premier sprinter Marlon Devonish.