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Getting Lean and MeanTransforming Legal Operations
Presenters
• Nancy Brooks, Vice President and Deputy General Counsel, Enterprise Contract Solutions, Discover Financial Services
• Juanita Luna, Director, Office of the General Counsel, Pacific Gas and Electric Company
• Al McNee, Executive Officer, Integreon
How do we prioritize?
Where do we to start?
Championing the change!
eDiscovery Costs
Budget
performance
Outside Counsel
Hourly Rates
Resource
Alignment
Goals
Dashboards
Spend Analytics
KPIs
LPOs
Metrics Matter
Success stories
CASE STUDY
Improving the Contracting Process
DISCOVER FINANCIAL SERVICES
Nancy BrooksVice President and Deputy General Counsel
2015 Observations on Contracting Process
• Many hand-offs between Procurement and Law, adding to contract cycle time
• “One size fits all” approach to all contracts is highly inefficient
– Very little talent-to-task alignment
– Overkill for low risk, low dollar contracts; limits time for more focused attention on highest risk contracts
– Limited opportunity to identify repeatable contracts, streamline related processes, and develop standard forms and “playbooks”
• Analysis of FY2015 numbers and types of contracts highlighted very high percentage of low-moderate risk/complexity contracts
– Exacerbated “one size fits all” approach
• Expectation of regulators and others to have consistent processes and approaches to contractual risks
Transforming the Enterprise-wide Contracting Process
Contract Solutions
Group
Vendor Contracts
Coverage Attorneys
Risk SMEs
Centralized filing in
Enterprise Repository
Payments
Contracts
Direct
Banking
Contracts
From
Other Contract Filing Locations
Enterprise
Contract Solutions
Vendor Contracts
PaymentsContracts
Direct Banking
Contracts
Risk SMEs
Centralized Filing in Enterprise Repository
To
Coverag
eAttorne
ys
What is Enterprise Contract Solutions?
Enterprise Contract Solutions Group • Fully integrated team of lawyers and contract
administrators (21 FTE, 7-8 temporary contract attorneys, administrative outsource)
• All contracts processed through this group• Interfaces with operational/regulatory attorneys,
risk SMEs, business
Driving Principles– Centralize review of transactions and contracts– Align skills and expertise with level of risk and
complexity of contract– Streamline end-to-end contract process– Decrease contract cycle time– Focus on service to clients– Consistency and standardization of terms and forms– Meet regulatory expectations for managing risks
associated with contracts– Continuous cycle of process improvement: analyze,
implement, review, refine
Mission Statement:
Provide efficient and effective transactional support in an innovative way to assist Discover in achieving its business objectives, while managing legal and regulatory risk.
Foundation of Transformation
Keys Areas of Focus:
People- Empower and Engage- Approval authority commensurate with experience
Process- Understand risk/complexity
of workload-“Right-size” legal approach- Align talent to task
Tools- Develop library of standard
forms and annotated agreements
- Explore automation in end-to-end process- Explore client self-service
Engaging entire team
in whole new approach
Abandoned assumptions
Dynamic management
Critical focus on key data
Continuous improvement
loop
Increase in Productivity & Access to DataFocus on capturing key data to better understand workload
Completely revamped reporting
Empowered and engaged team
•Dramatically decreased need for higher level approvals
•Eliminated frequent handoffs
Efficiency wins
•Increased resource productivity by ~20%
•Processed record number of contracts
•Eliminated 1800 hours of contract processing time through exemptions, and SOW-PO streamlined process
Non Vendor
Vendor
3718(2015 Negotiated)
0
1000
2000
3000
4000
5000
6000
2016 BU
1
2
34
Banking
BT/Corporate Suppor
t
Payments
Strategic
5300(2016
Negotiated)
2016 Type2016 Complexity
2015Total
S t a b l e S t a f f i n g / E x p e n s e
CASE STUDY
Overhauling Law Department Operations
PACIFIC GAS AND ELECTRIC COMPANY
Juanita LunaDirector, Office of the General Counsel
Daily Attendance
Invoice Review & Approval
Management Reports &
Dashboards
Budget
Excel
Yesterday….
Yesterday: Forecasting
Today: Data Input and Management
ELM“Where the data is entered,
managed, and stored”
• Matter Management
• Invoice & Financial Management
• Appointment & Task Management
• Time Entry Module
• Vendor & Contacts
• Searching
• Document Management
• Single-source Platform
• E-Billing
• Matter Request
• Calendaring
• Outlook Integration
• Subpoena & Reserve Database
• New Status List
Traits & Modules
Today: Legal Analytics
Data Analytics and
Visualization Platform
Traits & Modules
• Management Reports and
Dashboards
• Benchmarking
• Rate Reviews
• Financial Comparisons
• Staffing Allocation
• Budget Tracking
• Timekeeper Analysis
• Claims Analysis & Dashboards
Traits & Modules
Insightful Analysis
What Next?
Final Points
Assess
Design
Implement
Manage Change
Evaluate
People
ProcessTools
CHANGE
Change Management
Success has a big impact
