win in-house counsel day melbourne - dla piper win...win in-house counsel day melbourne wednesday 16...

WIN In-House Counsel Day Melbourne Wednesday 16 March 2016

DELIVERING BETTER: INNOVATION IN PRACTICE

LENNY LEERDAM (Partner, DLA Piper)

ALISON LAIRD (Legal Project Manager, Service Delivery & Quality, DLA Piper)

KATHERINE HOOPER (Special Counsel, DLA Piper)

Introduction

What we plan to cover:

1. Market Overview

2. Focussing on value

3. Delivering Better: Case Studies

4. In-house Legal Innovation

5. Key Take-Aways

2 Wednesday 16 March 2016 WIN In-House Counsel Day, Melbourne

Market Overview

External Challenges

4 WIN In-House Counsel Day, Melbourne Wednesday 16 March 2016

Reviewing relationships with

external counsel

Trusted advisor relationship

with fewer firms

Clients trends in mature

markets now impacting

Asia-Pac

Procurement more involved

in selecting legal providers

Resources becoming

increasingly scarce

(time, people, money)

CONSOLIDATION GLOBALISATION PROCUREMENT

More choice in legal delivery…

More legal options available

5 WIN In-House Counsel Day, Melbourne Wednesday 16 March 2016

Contract

lawyers

Low Cost

Centres Online

Legal

consultancy

Managed legal

services

Law Firms

Collaboration

What's your biggest

challenge as in-house

counsel?

Internal Challenge

Higher workload vs staffing numbers

Working "harder" is now not the only answer, if at all

Working "differently" and/or "smarter" - how exactly?

Providing technical legal advice is no longer "enough"

Need to be a responsible, valuable legal department ‘cost centre’

Delivering commercially savvy and strategic business advice

How in-house legal work is (and should be) organised

Efficiency and effectiveness of the overall legal service

What is external Counsel's role in this 'value' proposition?


Focussing on Value

Focusing on Value

9 9

Realise

the Value

Crystallise

the

Value

Identify

the

Value

STRATEGIC TACTICAL DELIVERY

PROCESS

EXCELLENCE Wednesday 16 March 2016 WIN In-House Counsel Day, Melbourne

Smarter Sourcing

10 10

There are, in resourcing terms, three categories of legal work:

Strategic &

Technical

Business as Usual

Bet

the

Farm

Bet the Farm

Of material impact to the balance sheet, directly or indirectly

"Unknown Unknown" - unforeseeable, unpredictable

HIGH RISK, PEAKY DEMAND

Buy hourly rate with tight budget control methodology

Strategic & Technical

"Known Unknown" - foreseeable, unpredictable

MEDIUM RISK, UNITARY DEMAND PEAKY BUT CONSTANT

AT MACRO LEVEL

Buy through matter per matter AFAs

Business as Usual

Supports, enables or protects business operations

"Known Known" - foreseeable, predictable

LOWER RISK, DEMAND CONSTANT

Buy through fixed price portfolios with unitary rebasing

Wednesday 16 March 2016 WIN In-House Counsel Day, Melbourne

Delivering Better:

Case Studies

Case Study: External Counsel Value

HIGH VOLUME LITIGATION

Identify the 'known knowns', and 'map' the

foreseeable, predictable patterns and 'flows' of

the business

Understand the critical KPI's, both for in-house

and external Counsel and ensure they are

captured in the business process

Collaborate to find the most efficient and effective

way of achieving the outcomes

Manage the overall risk, escalate when

necessary, review and refresh


GRANTS PROGRAM SUBJECT

TO EXTERNAL REVIEW

Identify the 'knowns', being the Strategic issues

from the perspective of in-house Counsel

Consider the 'unknowns', being the Technical

outcomes of those issues, so far as external

Counsel is concerned

Collaborate to find the most efficient and effective

way of achieving the outcomes



13




WHISTLE BLOWER LEGISLATION

Identify the critical operational, revenue and

reputational risks involved

Identify the stakeholders, the critical legislative or

policy path, and the support required from

external Counsel

Manage the 'unknown, unknown' (ie. the public

interest disclosure) according to the established

process




In-house Legal Innovation

How do other in-house teams add value


High Performing In-House Legal Teams

17

Business Insight

People

Organisation

Compliance & Control

Technology

Efficiency

Are you aligned to the business

in a way that enables proactive

identification of "legal risk"?

Does the balance of internal

and external resource meet the

needs of your business and

develop your people?

Lessons Learned

Strategy & Planning

Commitment Reporting

Rights Reporting

Operational Improvement

Reporting & Monitoring

Technical Queries

Case/Matter Management

Supplier Engagement &

Management

Does your governance model

enable you or inhibit you from

business partnering?

Do you use technology

internally and externally to

improve leverage?

How do you monitor and

improve efficiency of internal

processes and external

supplier engagements?

What are and how can you establish

that there are the appropriate levels of

control in place to minimise risk whilst

not straitjacketing the business?

Regulatory Compliance

Dispute Management

Rights Management

Commitment Management

Authority and Approvals

Process


How to become a high performing team

Smart resourcing

Tools and technology

Assess in-house status / "maturity"

18

Level 1 Level 2 Level 3 Level 4 Level 5

Initial Repeatable Defined Managed Optimised


Business Insight: Strategy & Planning

19

Level 1 Level 2 Level 3 Level 4 Level 5

Initial Repeatable Defined Managed Optimised

Inconsistent ad hoc.

Limited linkages.

No direct strategic

input from legal.

Legal generally not

seen as requirement

for strategy or

planning.

Legal/regulatory issues clearly identified and included in the strategy

and planning process

Business units perform

planning using different

processes by location.

Central timetable exists.

Legal consulted locally.

Limited project

management.

Legal involved in the

process but often after

key decisions have been

made by senior

management.

Comprehensive central

guidelines.

Centrally defined output &

timetable.

Corporate strategy shared

with legal function.

Efficient strategic planning

process.

Legal either actively

engaged; or lead process.

Well thought through

regulatory and legal

strategy.

Common and well

understood guidance.

Technology used

effectively.

Clearly defined processes

for all planning activities.

Centrally defined output &

timetable proactive

engagement from legal.

Legal core element to

central sign-off process.

Consistent linkage to legal

or regulatory obligations.

Some planning activities

performed in silos.


In-house Team Value

20 20

Things rarely go wrong inside legal!

"Legal Risk" becomes real either

before legal are aware of the issue

or once legal have done their bit

Pre-engagement "Legal Risk"

Breach of Statutory / Regulatory

duty

Post-engagement "Legal Risk"

Breach of contract

Failure to exploit rights

Failure to follow policy In-house Legal

Not involved

early enough

External legal

Counsel


Measuring value – How & Why?

Why

Self diagnosis

Implement strategic

improvements

Focus on reducing costs

Increase the influence of

your legal function

Develop and motivate your

team

21

How

Hard measurements

stats, $'s, numbers

Soft measurements

statement of outcomes that

legal has contributed to

"But for legal…"


Measuring value – What?

Common objectives:

Cost effectiveness

Productivity

Process efficiency

Cycle time

Quality and business

satisfaction

Legal panel efficiency

22

Metrics that can support

these objectives:

Staffing

Utilisation

Income

Costs

Compliance

Client satisfaction

Panel firm KPIs


Key Take-Aways

Key Take-Aways

More pressure on in-house teams to deliver more with less

Consider:

is your team structured in the best way to support the business?

are you partnering effectively with your external legal providers?

are you capturing your own "value-add"?

how to you track and monitor your legal matters?

how can you use your data better?

what do you need to do to move along the "maturity model" to

become a high performing in-house team?


Lenny Leerdam

Partner, Litigation & Regulatory

[email protected]

Alison Laird

Legal Project Manager

[email protected]

Katherine Hooper

Special Counsel

Litigation & Regulatory

[email protected]

win in-house counsel day melbourne - dla piper win...win in-house counsel day melbourne wednesday 16...

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