[PPT] - New Resources for a New Age Brad Blickstein David Cambria Recent PowerPoint Presentation

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New Resources for a New Age

Brad Blickstein David Cambria

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Recent Headlines

GC Plan Few Hires – But Still Say More Work Coming

In-House

How to Control Litigation Costs
Pressure Rising for Early Settlement; Bad Times are

Good Times for ADR

Controlling the Cost of Environmental Regulation
Alternative Billing Making a Comeback
Law Departments Look for Improved Management

Reporting

High Fees and High Pressure Spawn and Alternative
Foreign Firms Offer Quality Work at Bargain Rates

1992

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Law is a complicated thing

The number of laws have been growing every year for the past two hundred years. For example: The IRS laws were first codified in 1874 and today has more than 3.4 million words and if printed at 60 lines per page is more than 7500 pages long.

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Regulatory Activity and Complexity are Increasing

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Breaking the Duopoly

Until recently almost ALL legal work

was either done in-house or sent to law firms – we call this the “Duopoloy”

This is no longer true
Let’s brainstorm some of the new

resources for getting legal work done

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Why is this happening?

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Law Department Operations Survey

The 10th Annual Law Department Operations Survey from the Blickstein Group provides insight into many critical success factors of effectively managed corporate law departments.

www.blicksteingroup.com 7

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www.blicksteingroup.com 8

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Your Host

www.blicksteingroup.com 9

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13% 4%

Our law firm rates went up by more than 5% last year

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90% 90%

Our law firms discount their hourly rates

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31% 9%

Our law firms are innovative

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21% 21%

Our law firms do a good job at suggesting AFAs that meet our needs

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10% 75%

“Law firm unwillingness” is the biggest impediment to using AFAs

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85% 85%

Corporate law departments will be the primary driver of change in the legal sector

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How is this happening?

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25% 25%

We use data mining and analytics for selection of counsel

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50% 35%

Most law departments will be using artificial intelligence for legal-type work in the next three years

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We use alternative legal service/non-law firm vendors for:

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22% 10% 14% 22% 27% 55% 0% 10% 20% 30% 40% 50% 60% Due Diligence Compliance Internal Investigations Contract Drafting Contract Review Document Review

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ADM Case Study

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Distill Best Practices into Simple Processes

We implement disruptive changes within the department, manage the disruption and ensure adoption to department processes and policies.

Process

Matter Management Significant Matter NDA’s Reserve Setting Board Communication Ebilling Shipping Risk Invention Disclosure Settlement Requests Legal Holds 10 q COI

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Overview

Survey respondents were asked to estimate the amount of time they spent on various matter

types and sub types.

Overlaying the workload data with the Risk/Impact categorization of the matter types by the

leadership team, we (1) analyzed alignment (or lack thereof) relative to level / expertise required, and (2) identified opportunities to leverage down work where appropriate. Key Takeaways

Sub-optimal allocation coupled with self-identification of work is leading to misalignment of

resources and potential “under delivery” of legal services.

ADM L/C/GR can potentially be more effective and efficient in providing legal services by:
Leveraging more Lower Value / Lower Effort work downward, freeing up the leadership

team and senior level resources to spend more time on strategic work.

Streamlining processes, using enabling technology and alternative service providers for

certain matter sub types and tasks.

Workload Allocation

Privileged and Confidential – For Discussion Purposes Only 22

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The framework below helps the department identify what work to keep in house, outsource to experts,

r automate based on the work’s impact on competitive advantage and the level of risk involved.

A Framework for Focusing Legal Service Delivery – It’s About Resources, Not Importance

Privileged and Confidential – For Discussion Purposes Only 23

Experiential:

“Middle 60” work.
Situation-driven

approach.

Key focus area for law

department management. Un Unique / Sp Specialty ty:

Specialized work requiring

expertise or experience.

High risk, significant

bottom line impact.

Non-recurring or

unpredictable.

Requires deep bench

strength and horsepower. Commodity / Bulk:

Repeatable,

commoditized, routine, and risk is ring-fenced.

Does not require in-

market location or specialized knowledge. Experiential:

“Middle 60” work.
Situation-driven

approach.

Objective is to minimize,

to the extent possible.

OUTSOURCE

(with in-House Support/ Management)

Risk

CONTEXT (Low Impact

n Competitive Advantage) Impact

Mission Critical (High Risk) Non-Mission Critical (Low Risk)

AUTOMATE OR OUTSOURCE

CORE (High Impact

n Competitive Advantage)

MANAGE INTERNALLY AUTOMATE OR OUTSOURCE

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Employing the Framework

REQUEST INTAKE CORE?

Mission Critical? Mission Critical?

Dedicate in-house legal resources to handling request Refer client to electronic tools available or to outside resource Outsource matter with extensive management from in-house experts Point client to automated tools or OC with relevant experience YES YES NO YES NO NO

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The framework below helps the department identify what work to keep in house, outsource to experts,

r automate based on the work’s impact on competitive advantage and the level of risk involved.

A Framework for Focusing Legal Service Delivery – It’s About Resources, Not Importance

Privileged and Confidential – For Discussion Purposes Only 25

Experiential:

“Middle 60” work.
Situation-driven

approach.

Key focus area for law

department management. Un Unique / Sp Specialty ty:

Specialized work requiring

expertise or experience.

High risk, significant

bottom line impact.

Non-recurring or

unpredictable.

Requires deep bench

strength and horsepower. Commodity / Bulk:

Repeatable,

commoditized, routine, and risk is ring-fenced.

Does not require in-

market location or specialized knowledge. Experiential:

“Middle 60” work.
Situation-driven

approach.

Objective is to minimize,

to the extent possible.

OUTSOURCE

(with in-House Support/ Management)

Risk

CONTEXT (Low Impact

n Competitive Advantage) Impact

Mission Critical (High Risk) Non-Mission Critical (Low Risk)

AUTOMATE OR OUTSOURCE

CORE (High Impact

n Competitive Advantage)

MANAGE INTERNALLY AUTOMATE OR OUTSOURCE

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Workload Allocation What is ripe for alternative sourcing?

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Plot Risk vs. Impact

Asset Purchase
Breach of Contract
Clients Business/Contracts - Strategic

Advice

Commercial
Communication & Training
Communications and Public

Relations

Compliance Process Implementation
Confidentiality (NDA)
Contentious - Strategic Advice and

Counsel

Contract Facilitation/Administration
Contract/Trade
Corporate Governance
Corporate Services/Support -

Strategic Advice

Finance/Treasury
Government Relations - Legislation
Health and Safety
Intellectual Property
Intellectual Property - Patent

Prosecution

Internal Department Meetings
International Trade

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Plot Risk vs. Impact

Invoice Approvals
IP - Trademarks
Licensing
Lobbying
M&A
Marketing Agreements
Navigating Matrix Roles
Other Compliance
Outside Counsel Management
Performance and Personnel

Management

Professional Services Agreements
Real Estate - Acquisition/Disposition
Regulatory - Strategic Advice and

Counsel

Special Projects
Statutory/Regulatory Compliance
Strategy and Leadership
Training and Development
Transportation
Vendor Management

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The chart below shows the Value / Effort grid along with the attributes for the types of work in each

category. The top 40 of ADM’s matter sub types are included here. The next slide summarizes the Total

FTEs for these matter sub types.

Findings – Workload Allocation

Privileged and Confidential – For Discussion Purposes Only 29

Experiential:

“Middle 60” work.
Situation-driven

approach.

Key focus area for law

department management. Unique / Specialty:

Specialized work requiring

expertise or experience.

High risk, significant

bottom line impact.

Non-recurring or

unpredictable.

Requires deep bench

strength and horsepower. Commodity / Bulk:

Repeatable,

commoditized, routine, and risk is ring-fenced.

Does not require in-

market location or specialized knowledge. Experiential:

“Middle 60” work.
Situation-driven

approach.

Objective is to minimize,

to the extent possible.

Asset Purchase M&A Breach of Contract Client Business / Contracts - Strategic Advice and Counsel Corporate Governance Intellectual Property - Patents Outside Counsel / Vendor Management Government Relations - Lobbying Communication & Public Relations Government Relations - Legislation Intellectual Property Corporate Services / Support - Strategic Advice and Counsel Statutory/Regulatory Compliance - Federal International Trade Performance and Personnel Management Communication & Training Strategy and Leadership Contentious - Strategic Advice and Counsel Health and Safety Regulatory - Strategic Advice and Counsel Other Compliance Contract Facilitation/Administration Government Relations - Associations Commercial Confidentiality-Nondisclosure Real Estate - Acquisition/Disposition Compliance Process Implementation Contract/Trade Professional Services Agreements Intellectual Property - Trademarks Client Business/Contracts - Other Marketing Agreements Invoice Approvals Transportation Special Projects Licensing Internal Departmental Meetings Finance/Treasury Training and Development Navigating Matrix Roles and Responsibilities

Risk

Lower

Impact

Higher Higher