ADDING VALUE AS IN-HOUSE COUNSEL
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1 ADDING VALUE AS IN-HOUSE COUNSEL Law Department Reporting & Metrics SCOTT ANGELICI, DEERE & COMPANY KIM BYKOV, CA TECHNOLOGIES BERNADETTE BULACAN, THOMSON REUTERS MANAGING LITIGATION FORUM, NEW YORK JUNE 13, 2013
2 METRICS & REPORTING: TODAY S GOALS OVERVIEW & INTRODUCTIONS ADDING & MEASURING VALUE OVERALL LEGAL LANDSCAPE LITIGATION & MATTER MANAGEMENT MANAGING OUTSIDE COUNSEL & LAW DEPARTMENT OPERATIONS BEST PRACTICES TO COLLECT METRICS 2 2
3 OUR PANEL EXPERTS KIM BYKOV SCOTT ANGELICI BERNADETTE BULACAN VICE PRESIDENT, SENIOR COUNSEL PROJECT MANAGER, IT ANALYST DIRECTOR, MARKET DEVELOPMENT 3
4 YOU CAN T MANAGE WHAT YOU CAN T MEASURE Control costs Value of Legal Function Better understand legal landscape Aid make vs. buy decisions DATA Defend staff, budget, structure Act/think/ speak like a CEO/CFO Reduce risk 4 Triage matters 4
5 WHICH METRICS TO TRACK? Which of the following metrics do you track? Legal spend as percent of revenue and total expense Total expenses by firm for particular groups of matters 59.1% 68.2% Percent of legal spend for proactive work vs. dispute resolution 40.9% Total cost of outcome 36.4% Average/median bill rate by firm for particular group of matters Days to resolution by firm or by particular groups of matters 5 Percent of hours received at discount rates * Fifth Annual Legal Department Operations Survey (Inside Counsel) % 36.4% 31.8% 60% Percent of legal departments with formalized metrics program
6 E-BILLING: TIP OF THE DATA ICEBERG Law firms submit electronic bills online to legal department Invoice processed against billing guidelines Automated routing to approvers Approved bill is sent to AP system for payment Invoice is archived in matter mgmt. system; AVAILABLE FOR QUERY AND REPORT CREATION 6 6
7 METRICS & REPORTING: TODAY S GOALS OVERVIEW & INTRODUCTIONS ADDING & MEASURING VALUE: OVERALL LEGAL LANDSCAPE LITIGATION & MATTER MANAGEMENT MANAGING OUTSIDE COUNSEL & LAW DEPARTMENT OPERATIONS BEST PRACTICES TO COLLECT METRICS 7 7
8 OVERALL LEGAL LANDSCAPE MONTH YTD 2012 Total Matters Total Spending $672,024 $4,974,492 $9,084,047 Total$/$M Sales.19%.16%.21% Active Litigation New Litigation Closed Litigation Cycle Time N/A 199 Days 357 Days Litigation Spend $367,960 $2,960,967 $3,642,612 Litigation $/$M Sales.10%.10%.08% Settlement $ N/A $1,602,715 $278,936 Patents Trademarks IP Spending $176,135 $1,358,005 $1,467,726 IP$/$M Sales.05%.04%.03% Trainings Ethics Complaints
9 DEEPER DIVE: OVERALL TOTAL SPENDING MONTH YTD 2012 Total Matters Total Spending $672,024 $4,974,492 $9,084,047 Total$/$M Sales.19%.16%.21% 9
10 DEEPER DIVE: LITIGATION MONTH YTD 2012 Active Litigation New Litigation Closed Litigation Cycle Time N/A 199 Days 357 Days Litigation Spend $367,960 $2,960,967 $3,642,612 Litigation $/$M Sales.10%.10%.08% Settlement $ N/A $1,602,715 $278,936 10
11 DEEPER DIVE: INTELLECTUAL PROPERTY MONTH YTD 2012 Patents Trademarks IP Spending $176,135 $1,358,005 $1,467,726 IP$/$M Sales.05%.04%.03% 11
12 12 VISUALIZING THE LEGAL PORTFOLIO
13 METRICS & REPORTING: TODAY S GOALS OVERVIEW & INTRODUCTIONS ADDING & MEASURING VALUE: OVERALL LEGAL LANDSCAPE LITIGATION & MATTER MANAGEMENT MANAGING OUTSIDE COUNSEL & LAW DEPARTMENT OPERATIONS BEST PRACTICES TO COLLECT METRICS 13 13
14 LITIGATION MANAGEMENT: SAMPLE UTBMS REPORT Matter Short Name Substantive Law Case I Intellectual Property - Patent Case I Intellectual Property - Patent Case I Intellectual Property - Patent Case I Intellectual Property - Patent Case S Intellectual Property - Patent Case S Intellectual Property - Patent Case S Intellectual Property - Patent Case S Intellectual Property - Patent Firm Short Level Name Name Firm B L1 - Assessment Firm B L2 Pre-Trial Firm B L3 - Discovery Firm B L4 Trial Firm H L1 - Assessment Firm H L2 Pre-Trial Firm H L3 - Discovery Firm H L4 Trial Alert Trigger Amount Approved Invoices $24, USD $20, USD Total Approved by Matter $44, USD $44, USD $80.00 USD $44, USD $ USD $139, USD $17, USD $12, USD $ USD $44, USD $181, USD $181, USD $181, USD $181, USD % of Matter Spent 54% 45% 0% 0% 77% 10% 7% 0% 14 14
15 AFAS: RESULTS FOR GROUPS OF MATTERS
16 WHERE IS LITIGATION CONCENTRATED?
17 USE OF EXTERNAL BENCHMARKS: DISCRIMINATION CLAIMS Claim Type Company EEOC Data Race 21.6% Gender 17.5% Nat'l Origin 6.8% Religion 2.3% Retaliation 21.8% Age 14.0% Disability 15.2%
18 METRICS & REPORTING: TODAY S GOALS OVERVIEW & INTRODUCTIONS ADDING & MEASURING VALUE: OVERALL LEGAL LANDSCAPE LITIGATION & MATTER MANAGEMENT MANAGING OUTSIDE COUNSEL & LAW DEPARTMENT OPERATIONS BEST PRACTICES TO COLLECT METRICS 18 18
19 BALANCE WORK AMONG FIRMS 2011 Evaluation Score # Files (Lead) Firm Business Unit/Focus 2011 $K % Firm 1 Vendors) 1, % Firm 2 Processing & Production/Li % Firm 3 IP % Firm 4 International % Firm 5 International - Brazil % Firm 6 All - Annuity Payments % N/A N/A Firm 7 International % Firm 8 IP % Firm 9 IP % Firm 10 Customs Compliance % Firm 11 Litigation % Fimr 12 IP - DDS % Firm 13 IP % Firm 14 Corporate % Others 39 Firms % TOTALS 4, % 19
20 OUTSIDE COUNSEL SCORECARD: CRITERIA Subject Matter Expertise/Quality of Work Teaming and Collaboration with Inside Counsel Appropriate Use of Staff Appropriate Use of Technology Responsiveness Cost Effectiveness Overall Effectiveness 20 20
21 OUTSIDE COUNSEL SCORECARDS By Firm By Expertise/Subject matter By Evaluator 21 21
22 DRIVE WORK TO HIGHER PERFORMERS 22 22
23 BUDGET PERFORMANCE BY LAW FIRM
24 TIME KEEPER RATE COMPARISONS Legal departments able to aggregate and benchmark rate data to prepare for end-of-year hourly rate negotiations and review
25 REVIEW STAFFING SELECTION Was the matter appropriately staffed based on experience and value? 25
26 DEMONSTRATING VALUE: RETENTION GUIDELINES Are our firms following our retention terms? Are we leaving money on the table by ignoring audits? BILLING GUIDELINE ENFORCEMENT Billing Guidelines Reduction $46, $47, Billing Guidline Override $53, $41, $12, $11, $14, $9, Q1 Q2 Q3 Q4
27 DEMONSTRATING VALUE: IN-HOUSE COUNSEL SCORECARDS > Expert in Field > Understands my business > Is highly ethical > Replies to my s/phone calls promptly > Communicates clearly > Provides helpful alternatives > Understands and establishes priorities > Is cost conscience 27 27
28 DEMONSTRATING VALUE: SPEAKING TO THE C-SUITE 28 28
29 METRICS & REPORTING: TODAY S GOALS OVERVIEW & INTRODUCTIONS ADDING & MEASURING VALUE: OVERALL LEGAL LANDSCAPE LITIGATION & MATTER MANAGEMENT MANAGING OUTSIDE COUNSEL & LAW DEPARTMENT OPERATIONS BEST PRACTICES TO COLLECT METRICS 29 29
30 *SMART* METRICS S - Set an Objective for your Metrics M - Make it measurable A Align activities R Realize targets/goals T - Take action and monitor 30 30
31 THREE TIPS/TAKEAWAYS FOR DATA COLLECTION KIM BYKOV SCOTT ANGELICI BERNADETTE BULACAN VICE PRESIDENT, SENIOR COUNSEL PROJECT MANAGER, IT ANALYST DIRECTOR, MARKET DEVELOPMENT 31
32 CONCLUSION You can t manage what you can t measure More legal departments using data to: > Better manage litigation > Identify trends within legal work > Drive work to higher performers > Demonstrate overall value of the legal department (efficiency and productivity gains, cost savings) Make data-driven decisions 32 32
33 LEARN NEW WAYS TO MAKE THE NUMBERS WORK FOR YOU!
34 QUESTIONS?
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