ADDING VALUE AS IN-HOUSE COUNSEL Law Department Reporting & Metrics
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1 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
2 AGENDA OVERVIEW & INTRODUCTIONS ADDING & MEASURING VALUE ASSESSING THE LEGAL LANDSCAPE LITIGATION & MATTER MANAGEMENT MANAGING OUTSIDE COUNSEL & LAW DEPARTMENT OPERATIONS TIPS FOR COLLECTING AND USING DATA 2
3 OUR PANEL LAMB PARTNERS MARGARET O CONNOR INTELLECTUAL PROPERTY COUNSEL PAUL SEEMAN GENERAL COUNSEL LAMB PARTNERS LAURA STANGEL GENERAL COUNSEL PROJECT CONSULTANT
4 MONEYBALL FOR YOUR LAW DEPARTMENT DATA MAKES THE DIFFERENCE 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 Triage matters 4
5 WHICH METRICS DO YOU TRACK? Legal spend as percent of revenue and total expense 68.2% Total expenses by firm for particular groups of matters 59.1% Percent of legal spend for proactive work vs. dispute resolution 40.9% Total cost of outcome Average/median bill rate by firm for particular group of matters Days to resolution by firm or by particular groups of matters Percent of hours received at discount rates * Fifth Annual Legal Department Operations Survey (Inside Counsel) 22.7% 36.4% 36.4% 31.8% 60% Percent of legal departments with formalized metrics program 5
6 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 6
7 AGENDA OVERVIEW & INTRODUCTIONS ADDING & MEASURING VALUE: OVERALL LEGAL LANDSCAPE LITIGATION & MATTER MANAGEMENT MANAGING OUTSIDE COUNSEL & LAW DEPARTMENT OPERATIONS TIPS FOR COLLECTING AND USING DATA 7
8 PRESENTING THE 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 0 1 1
9 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 AGENDA OVERVIEW & INTRODUCTIONS ADDING & MEASURING VALUE: OVERALL LEGAL LANDSCAPE LITIGATION & MATTER MANAGEMENT MANAGING OUTSIDE COUNSEL & LAW DEPARTMENT OPERATIONS TIPS FOR COLLECTING AND USING DATA 10
11 PORTFOLIO MANAGEMENT: MATTERS BY AREA OF LAW 11
12 VISUALIZING THE LEGAL PORTFOLIO
13 MATTERS BY COUNTRY
14 WHERE IS LITIGATION CONCENTRATED?
15 TRACKING LITIGATION ISSUES
16 SAVINGS FROM ADDRESSING PROBLEM AREAS Show the impact of trainings provided by legal department Law department increased the number of trainings in response to rising number of HR matters COMPANY-WIDE HR TRAININGS Employment Matters Number of Trainings
17 MORE EFFICIENT ACCRUAL COLLECTION
18 EVALUATING AREAS OF SPENDING 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 - Discovery Firm B L3 Pre-Trial 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 Total Approved by Matter $44, USD $80.00 USD $44, USD $20, USD $ USD $139, USD $17, USD $12, USD $ USD $44, USD $44, USD $181, USD $181, USD $181, USD $181, USD % of Spend 54% 0% 45% 0% 77% 10% 7% 0% 18
19 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%
20 COMPARING RESULTS
21 AGENDA OVERVIEW & INTRODUCTIONS ADDING & MEASURING VALUE: OVERALL LEGAL LANDSCAPE LITIGATION & MATTER MANAGEMENT MANAGING OUTSIDE COUNSEL & LAW DEPARTMENT OPERATIONS TIPS FOR COLLECTING AND USING DATA 21
22 ALLOCATION OF MATTERS BY LAW FIRM AND AREA OF LAW 22
23 BUDGET PERFORMANCE BY LAW FIRM 23
24 SAVINGS FROM IMPROVED INVOICE MANAGEMENT 24
25 SAVINGS FROM ENFORCING 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
26 ASSESSING ANNUAL RATE INCREASES 26
27 KEEPING CURRENT WITH OPEN AND CLOSED MATTERS BY LAW FIRMS
28 CHECKING BILLS FOR APPROPRIATE STAFFING 28
29 POLICING BILL REVIEW The approval route and approvers in an individual invoice All unapproved invoices in one report 29
30 BALANCE WORK AMONG FIRMS Firm Business Unit/Focus 2011 $K % Evaluation Score # Files (Lead) 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, %
31 DRIVE WORK TO HIGHER PERFORMERS Ratings per law firm and individual attorneys: 31
32 DEMONSTRATING VALUE: SPEAKING TO THE C-SUITE 32
33 AGENDA OVERVIEW & INTRODUCTIONS ADDING & MEASURING VALUE: OVERALL LEGAL LANDSCAPE LITIGATION & MATTER MANAGEMENT MANAGING OUTSIDE COUNSEL & LAW DEPARTMENT OPERATIONS TIPS FOR COLLECTING AND USING DATA 33
34 TIPS FOR COLLECTING AND USING DATA LAMB PARTNERS MARGARET O'CONNOR INTELLECTUAL PROPERTY COUNSEL PAUL SEEMAN GENERAL COUNSEL LAMB PARTNERS LAURA STANGEL GENERAL COUNSEL PROJECT CONSULTANT
35 CONCLUSIONS Data improves performance both inhouse 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 35
36 LEARN NEW WAYS TO MAKE THE NUMBERS WORK FOR YOU!
37 QUESTIONS?
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