ADDING VALUE AS IN-HOUSE COUNSEL€¦ · adding value as in-house counsel law department reporting...

ADDING VALUE AS IN-HOUSE COUNSEL Law Department Reporting & Metrics MARGARET O’CONNOR, HOLLISTER PAUL SEEMAN, LAMB PARTNERS LAURA STANGEL, TRANSUNION ROBERT THOMAS, THOMSON REUTERS MANAGING LITIGATION FORUM, CHICAGO September 11, 2013

AGENDA

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• OVERVIEW & INTRODUCTIONS • ADDING & MEASURING VALUE

• ASSESSING THE LEGAL LANDSCAPE • LITIGATION & MATTER MANAGEMENT • MANAGING OUTSIDE COUNSEL &

LAW DEPARTMENT OPERATIONS • TIPS FOR COLLECTING AND USING DATA

OUR PANEL

MARGARET O’CONNOR

INTELLECTUAL PROPERTY

COUNSEL

PAUL SEEMAN

GENERAL COUNSEL LAMB PARTNERS

LAURA STANGEL

GENERAL COUNSEL

PROJECT CONSULTANT

LAMB PARTNERS

MONEYBALL FOR YOUR LAW DEPARTMENT – DATA MAKES THE DIFFERENCE

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Value of Legal Function

Better understand

legal landscape

Defend staff, budget,

structure

Reduce risk

Triage matters

Act/think/ speak like a

CEO/CFO

Aid “make vs. buy” decisions

Control costs

DATA

WHICH METRICS DO YOU TRACK?

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22.7%

31.8%

36.4%

36.4%

40.9%

59.1%

68.2%

Percent of hours received at discount rates

Days to resolution by firm or by particular groups of matters

Average/median bill rate by firm for particular group of matters

Total cost of outcome

Percent of legal spend for proactive work vs. dispute resolution

Total expenses by firm for particular groups of matters

Legal spend as percent of revenue and total expense

60% Percent of legal

departments with formalized metrics

program

* Fifth Annual Legal Department Operations Survey (Inside Counsel)

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E-BILLING: INSTANT ACCESS TO USEFUL FINANCIAL DATA

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

AGENDA

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• OVERVIEW & INTRODUCTIONS • ADDING & MEASURING VALUE:

• OVERALL LEGAL LANDSCAPE • LITIGATION & MATTER MANAGEMENT • MANAGING OUTSIDE COUNSEL &

LAW DEPARTMENT OPERATIONS • TIPS FOR COLLECTING AND USING DATA

PRESENTING THE LEGAL LANDSCAPE

MONTH YTD 2012

Total Matters 595 -152 747 Total Spending $672,024 $4,974,492 $9,084,047 Total$/$M Sales .19% .16% .21% Active Litigation 12 -2 14 New Litigation 1 8 17 Closed Litigation 0 8 15 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 970 +31 939 Trademarks 272 -17 289 IP Spending $176,135 $1,358,005 $1,467,726 IP$/$M Sales .05% .04% .03% Trainings 7 32 21 Ethics Complaints 0 1 1

DEEPER DIVE: LITIGATION

MONTH YTD 2012

Active Litigation 12 2 14 New Litigation 1 8 17

Closed Litigation 0 8 15 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

AGENDA

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• OVERVIEW & INTRODUCTIONS • ADDING & MEASURING VALUE:

• OVERALL LEGAL LANDSCAPE • LITIGATION & MATTER MANAGEMENT • MANAGING OUTSIDE COUNSEL &

LAW DEPARTMENT OPERATIONS • TIPS FOR COLLECTING AND USING DATA

PORTFOLIO MANAGEMENT: MATTERS BY AREA OF LAW

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VISUALIZING THE LEGAL PORTFOLIO

MATTERS BY COUNTRY

WHERE IS LITIGATION CONCENTRATED?

TRACKING LITIGATION ISSUES

SAVINGS FROM ADDRESSING PROBLEM AREAS

• Show the impact of trainings provided by legal department

0

5

10

15

20

25

30

2002 2003 2004 2005 2006 2007 2008 2009 2010

COMPANY-WIDE HR TRAININGS

Employment Matters Number of Trainings

Law department increased the number of trainings in response to rising number of HR matters

MORE EFFICIENT ACCRUAL COLLECTION

EVALUATING AREAS OF SPENDING

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Matter Short Name Substantive Law

Firm Short Name

Level Name

Alert Trigger Amount

Approved Invoices

Total Approved by Matter

% of Spend

Case I Intellectual Property - Patent

Firm B L1 - Assessment

$24,289.00 USD

$44,846.15 USD

54%

Case I Intellectual Property - Patent

Firm B L2 - Discovery

$80.00 USD $44,846.15 USD

0%

Case I Intellectual Property - Patent

Firm B L3 – Pre-Trial

$20,357.00 USD

$44,846.15 USD

45%

Case I Intellectual Property - Patent

Firm B L4 – Trial

$100.00 USD

$44,846.15 USD

0%

Case S Intellectual Property - Patent

Firm H L1 - Assessment

$139,297.00 USD

$181,828.17 USD

77%

Case S Intellectual Property - Patent

Firm H L2 – Pre-Trial

$17,994.50 USD

$181,828.17 USD

10%

Case S Intellectual Property - Patent

Firm H L3 - Discovery

$12,434.00 USD

$181,828.17 USD

7%

Case S Intellectual Property - Patent

Firm H L4 – Trial

$360.00 USD

$181,828.17 USD

0%

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%

USE OF EXTERNAL BENCHMARKS: DISCRIMINATION CLAIMS

COMPARING RESULTS

AGENDA

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• OVERVIEW & INTRODUCTIONS • ADDING & MEASURING VALUE:

• OVERALL LEGAL LANDSCAPE • LITIGATION & MATTER MANAGEMENT • MANAGING OUTSIDE COUNSEL &

LAW DEPARTMENT OPERATIONS • TIPS FOR COLLECTING AND USING DATA

ALLOCATION OF MATTERS BY LAW FIRM AND AREA OF LAW

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BUDGET PERFORMANCE BY LAW FIRM

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SAVINGS FROM IMPROVED INVOICE MANAGEMENT

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SAVINGS FROM ENFORCING RETENTION GUIDELINES

• Are our firms following our retention terms? • Are we leaving money on the table by ignoring audits?

$46,611.10 $47,514.00 $53,961.00

$41,904.00

$12,228.05 $11,541.00 $14,213.39

$9,215.00

Q1 Q2 Q3 Q4

BILLING GUIDELINE ENFORCEMENT Billing Guidelines Reduction Billing Guidline Override

ASSESSING ANNUAL RATE INCREASES

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KEEPING CURRENT WITH OPEN AND CLOSED MATTERS BY LAW FIRMS

CHECKING BILLS FOR APPROPRIATE STAFFING

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POLICING BILL REVIEW

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• All unapproved invoices in one report

• The approval route and approvers in an individual invoice

BALANCE WORK AMONG FIRMS Firm Business Unit/Focus 2011 $K %

Evaluation

Score# Files (Lead)

Firm 1

Vendors) 1,186 23.8% 3.4 31Firm 2 Processing & Production/Li 492 9.9% 3.0 12Firm 3 IP 347 7.0% 3.6 81Firm 4 International 304 6.1% 3.4 15Firm 5 International - Brazil 300 6.0% 3.0 2Firm 6 All - Annuity Payments 297 6.0% N/A N/AFirm 7 International 265 5.3% 3.2 36Firm 8 IP 202 4.1% 3.3 58Firm 9 IP 191 3.8% 3.5 98Firm 10 Customs Compliance 145 2.9% 3.6 1Firm 11 Litigation 132 2.7% 4.4 13Fimr 12 IP - DDS 131 2.6% 3.6 34Firm 13 IP 117 2.4% 3.6 15Firm 14 Corporate 115 2.3% 4.1 21Others 39 Firms 750 15.1%TOTALS 4,974 100.0%

DRIVE WORK TO HIGHER PERFORMERS

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• Ratings per law firm and individual attorneys:

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DEMONSTRATING VALUE: SPEAKING TO THE C-SUITE

AGENDA

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• OVERVIEW & INTRODUCTIONS • ADDING & MEASURING VALUE:

• OVERALL LEGAL LANDSCAPE • LITIGATION & MATTER MANAGEMENT • MANAGING OUTSIDE COUNSEL &

LAW DEPARTMENT OPERATIONS • TIPS FOR COLLECTING AND USING DATA

TIPS FOR COLLECTING AND USING DATA

MARGARET O'CONNOR

INTELLECTUAL PROPERTY

COUNSEL

PAUL

SEEMAN

GENERAL COUNSEL LAMB PARTNERS

LAURA STANGEL

GENERAL COUNSEL

PROJECT CONSULTANT

LAMB PARTNERS

CONCLUSIONS • Data improves performance – both in-

house and at law firms • More legal departments using data to:

> Identify trends within legal work > Better manage litigation > Drive work to higher performers > Demonstrate overall value of the legal department

(efficiency and productivity gains, cost savings)

• Make data-driven decisions

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LEARN NEW WAYS TO MAKE THE NUMBERS WORK FOR YOU!

QUESTIONS?