Using Technology to Achieve Competitive Excellence. June 8, 2010

Transcription

1 Using Technology to Achieve Competitive Excellence June 8, 2010

2 Presenters: Kimberly A. Townsan Senior Manager, Legal Administration United Technologies Corporation Telephone: Frank Orzo President LT Online Corporation Telephone:

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4 Electronic security and fire protection Air conditioning, heating, and refrigeration systems. Aircraft and space systems and engineered industrial products 264 Attorneys / 21 Countries / 73 Offices Supporting operations in 180+ countries Elevators, escalators, moving walkways and other horizontal transportation systems Helicopters Gas turbine aircraft and industrial engines, and space propulsion 4

5 UNITED TECHNOLOGIES CORPORATION Legal Department Structure CORPORATE HQ Counsel Management Policies Preferred Counsel Network Matter Management General & IP E-Invoicing Subs & Affiliates Legal Enterprise Reporting Carrier Hamilton Sundstrand Otis Pratt & Whitney Sikorsky UTC Fire & Security UTC Power UTRC 5

6 THE CHALLENGE TOO MANY FIRMS Phase 1 Consolidation U.S. Non-U.S. Total DATA NEEDS FROM YOUR MATTER MANAGEMENT SYSTEM What firms are being used What organization is using firm Who at the organization is using firm What type of work is being performed Where is the geographic need for the work IMPLEMENTATION & DECISION MAKING Senior management involvement Methodology for Analysis Establish thresholds Set organization goals Reporting & Monitoring 6

7 THE CHALLENGE TOO MANY FIRMS Phase 1 Consolidation Matter Management Enter Matter Information Information Analysis Matters Build Database Dispute Avoidance Financial Analysis Outside Counsel Business & Legal Categories 7

8 THE CHALLENGE TOO MANY FIRMS Phase 1 Consolidation Matter Management Information Analysis Establish Metrics Information Analysis Financial Analysis Analyze law department activity by: Area of law Line of business Collaboration 8

9 $ Millions # Firms THE CHALLENGE LEVERAGING SPEND PHASE 2 Preferred Counsel Program $150 $125 Firms accounting for 75% of total spend $ Total Spend # firms $160 $140 $120 Total Spend by Matter Type $ $100 $75 $80 $50 40 $60 $25 20 $40 $20 $ $ DATA NEEDS FROM YOUR MATTER MANAGEMENT SYSTEM Spend data by: Jurisdiction Matter Type Organization know the stakeholders! IMPLEMENTATION & DECISION MAKING Identify target areas: Significant spend Committed team RFP Process 9

10 THE CHALLENGE LEVERAGING SPEND PHASE 2 Preferred Counsel Program Matter Management Financial Analysis E-Billing Information Analysis Budgeting Establish Metrics Financial Analysis Alternative fee arrangements Prompt payment discounts Collaboration Improved settlement negotiation 10

11 THE CHALLENGE GET OFF THE CLOCK PHASE 3 Alternative Fees ($ millions) Alternative Fees Allocation % 35% 39% 23% 25% DATA NEEDS FROM YOUR MATTER MANAGEMENT SYSTEM Spend data by: Firm Type Firm Matter Type Matter Activity Other Alt Fee Arrangements IMPLEMENTATION & DECISION MAKING Senior Management Support Communicate Educate Provide Resources 11

12 THE CHALLENGE KNOWLEDGE MANAGEMENT PHASE 4 - Collaboration Waste and Rework Lean knowledge transfer and access DATA NEEDS FROM YOUR MATTER MANAGEMENT SYSTEM Firm Type Firm Name Matter Type # Matters $ Spend IMPLEMENTATION & DECISION MAKING Request Targets Communicate Educate Provide Resources

13 THE CHALLENGE KNOWLEDGE MANAGEMENT PHASE 4 - Collaboration Matter Management - Collaboration Information Analysis Establish Metrics Financial Analysis Biggest Payback Knowledge Repository Collaboration

14 Continual Improvement Program Information Management Establish Metrics Financial Management Sustainable Year after Year Collaboration 14

15 INVEST IN DESIGN DRIVES DATA Matter Categorization THINK PROCESS! SUBJECT IS A DATA ELEMENT TYPE Acquisitions & Divestitures Administration Advice & Counseling Antitrust (Deal Related) Intellectual Property Prosecution Litigation (i.e., adversarial claim, lawsuit, government investigation, government agency matter) excludes Bankruptcy (see Transaction Non-A&D) Subpoenas Third Party (UTC Not A Party) Transactional Non-A&D ACTIVITY Acquisitions & Divestitures Administration Advice & Counseling Antitrust Intellectual Property Prosecution Asbestos Employment/Labor General Product Liability UTC Plaintiff Subpoenas Bankruptcy Contracts/Agreements Real Estate AREA OF LAW Acquisitions, Mergers, Divest Administration / Training / Education Antitrust Bankruptcy Benefits/Plan Administration Business Practices/Compliance Collections Commercial Contracts Corporate/SEC Employment Environmental Non-Remediation Environmental Remediation Environmental Toxic Tort Financing Government Contracts Immigration Information Technology Insurance Intellectual Property Labor Legislation, Regulatory, Trade Real Property Tax Tort - Non-Product Tort Product Workers Comp

16 ALTERNATIVE FEES The only rule-discounted hours are not alt fees! Alternative Fee HOW TO MOVE OFF THE CLOCK 1. Find firms who operate under an Alt Fee Model! 2. Issue RFPs with alt fee requirement 3. Target areas of work that are repeatable, ongoing, high volume On the Clock 4. Measure at the organizational level 5. Measure by individual attorney 6. Measure by firm

17 LEGAL SERVICES FOCUS ON COMMON DATA ELEMENTS PROCUREMENT DEPARTMENT PERSPECTIVE LEGAL DEPARTMENT PERSPECTIVE 17

18 QUESTIONS? 18