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2 Showing Department Value Using Benchmarks and Metrics December 12, 2013 Presented By: Huron Legal in cooperation with Association of Corporate Counsel and the Law Department Management Committee

3 Welcome & Introduction Benchmark Sources Assessing Your Current State Defining Your Future State Presenting Your Business Case Driving Additional Value to the Business Session Agenda 3

4 Today s Participants Javier Rodriguez Vice President & General Counsel Reckitt Benckiser Pharmaceuticals Kevin Clem Managing Director Huron Legal 4

5 Huron Legal has been a proud sponsor of: ACC s Law Department Management Committee for five years; and, ACC s Annual meeting for five years. Technology Implementation Discovery Law Department Management Delivering Value Driving Results Enhancing Organizational Effectiveness and Reducing Legal Spend Staffing Law Firm Strategy & Management Records & Information Management 5

6 Reckitt Benckiser Pharmaceuticals A member of the Reckitt Benckiser Group, a fast-moving consumer goods company founded in 1823 and headquartered in Slough, UK with operations in 60 countries A global leader in Health, Hygiene, and Home, the parent company has built some of the leading brands in the world: Lysol, Calgon, Woolite, Scholl, Clearasil, Mucinex, and French s Pharmaceutical business founded in 2001 and headquartered in Richmond, VA RBP s lead product, Suboxone is the first medication approved for the treatment of opioid dependence that can be prescribed in the privacy of a physician s office Javier was appointed General Counsel in June 2011 Law Department is currently 5 people: General Counsel, Healthcare Compliance Officer, and Paralegal in Richmond, VA Regional Counsel in the UK (EU Region) and Singapore (Developing Markets Region) Supported by a Shared Services team in the UK for IP support and Corporate Governance/ Compliance Initiated benchmarking and operational assessment in early

7 Poll Question How many people are in your Law Department? 7

8 Legal Department Challenges and Trends Defining and articulating the department s value in business terms to the CEO, CFO and other leadership. Justifying increasing legal costs compared to budget cuts for other functions and departments. Balancing corporate practices with regulatory changes. Acting as a strategic business partner offering proactive advice and business risk management. Fully leveraging knowledge capital through work product re-use, internal contribution and collaboration with outside counsel. Establishing appropriate metrics and measurements to drive the desired behavior. 8

9 The Evolving Role of In-House Legal: Why Metrics Matter Consistent Delivery Efficiency & Predictability Business Acumen Substantive Legal Knowledge 9

10 Poll Question Do you do participate in benchmarking surveys? 10

11 Poll Question How helpful do you find legal benchmarking studies? 11

12 Poll Question What is your biggest concern/challenge with benchmarking? 12

13 Benchmark Sources Traditional legal benchmarks ask questions related to: Internal and external legal spending Legal department staffing Law firm rates Use of alternative fee arrangements Many legal departments use the benchmarks as a measuring stick to see how their data stacks up. Sampling of traditional legal department surveys: General Counsel Metrics Over 1,000 participants in 2012 HBR (Hildebrandt) Law Department Survey 25+ years; 220 participants in 2013 ACC/Serengeti Managing Outside Counsel Survey 10 years; 178 participants in

14 Huron s IMPACT Benchmarking Report In it s 4 th year, the 2013 IMPACT Benchmarking Report provides insights on leading practices to improve operational efficiency and control legal spending IMPACT Benchmark Survey Published by Huron Legal & The General Counsel Forum Focuses on key spend drivers such as: People staffing, resource allocation Processes use of outside counsel management techniques (selection protocols, budgets, AFAs) Technology use of Enterprise Legal Management systems, information governance technology, discovery technology 14

15 Why Do We Care? Comprehensive law department management programs: 30% lower total legal spending as a percentage of company revenue Source: 2013 IMPACT Benchmarking Report 15

16 Benchmarking Process Assessing Your Current State Defining Your Future State Presenting Your Business Case for Change Driving Additional Value 16

17 Law Department Maturity Model 17

18 Poll Question In which area do you feel your department is most operationally mature? 18

19 Poll Question In which area do you feel your department has the biggest opportunity to become more operationally mature? 19

20 Law Department Maturity Model - RBP Huron s Assessment of RBP Current State 20

21 People RBP staffing fell below the benchmarks Number of Lawyers and Legal Staff per $B in Revenue RBP LD 2012 Data Hildebrandt 2012 Survey IMPACT Survey GC Metrics Survey

22 Process RBP had opportunities to clarify the process for engaging outside counsel, specifically in its global markets Source: 2013 IMPACT Benchmarking Report 22

23 Technology RBP had selected a tool for contract management, but did not have matter management or e- billing in place Source: 2013 IMPACT Benchmarking Report 23

24 Benchmarking Process Assessing Your Current State Defining Your Future State Presenting Your Business Case for Change Driving Additional Value 24

25 Defining the Future State - Recommendations Define specific improvement recommendations around each area of People, Process, and Technology Assess the level of effort required and the value and impact of the improvement Prioritize quick wins and then identify timelines for longer term initiatives * Based on Recommendations on Slides

26 Defining the Future State Prioritized Initiatives Q Q Q Q Recommendation O N D J F M A M J J A S 1 People Rec 1 Recruiting Hiring and Onboarding 2 People Rec 2 Develop KPIs Gather KPI Data Create KPI Dashboard 3 Process Rec 1 Rollout of Tool Policy Refinement Implement New Policies 4 Process Rec 2 Finalize Guidelines Implement Guidelines/Process Expand Use of AFAs 5 Process Rec 3 Develop Model Rollout Refined Model Develop KPIs for Program 6 Process Rec 4 Develop Client Sat. Survey Conduct Survey Analyze Results Plan to Address 2 7 Technology Rec 1 Evaluate Available Systems Select & Implement ebilling / Matter Management Platform 8 Technology Rec 2 Gather Templates SharePoint Planning SharePoint Configuration SharePoint Rollout and Ongoing Maintenance 26

27 Benchmarking Process Assessing Your Current State Defining Your Future State Presenting Your Business Case for Change Driving Additional Value 27

28 Using Benchmarks and Metrics to Develop Business Case Use Staffing Benchmarks to Support Need for Additional Headcount Use Technology Benchmarks to Support Need for Investment in Systems Supplement Benchmarks with Qualitative Input from Clients and Law Department Team Members 28

29 Benchmarking Process Assessing Your Current State Defining Your Future State Presenting Your Business Case for Change Driving Additional Value 29

30 Poll Question Does your Law Department conduct internal client satisfaction surveys? 30

31 Supporting Continuous Improvement through Benchmarks and Metrics Key Performance Indicators and Client Satisfaction Survey will define baseline and allow tracking over time After Action Reviews at matter closing will capture lessons learned and provide feedback to business clients Improved data availability and reporting will increase ability for RBP Legal Department to demonstrate value to the business Source: 2013 IMPACT Benchmarking Report 31

32 Questions? Javier Rodriguez Vice President and General Counsel Reckitt Benckiser Pharmaceuticals (804) Kevin Clem Managing Director, Huron Legal (619)

33 Thank you for attending another presentation from ACC s Webcasts Please be sure to complete the evaluation form for this program as your comments and ideas are helpful in planning future programs. If you have questions about this or future webcasts, please contact ACC at webcast@acc.com This and other ACC webcasts have been recorded and are available, for one year after the presentation date, as archived webcasts at 33