ACC PRIMER Legal Project Management

Transcription

1 By in-house counsel, for in-house counsel. OCTOBER 2011 ACC PRIMER Legal Project Management Association of Corporate Counsel 1025 Connecticut Avenue, NW, Suite 200 Washington, DC USA tel , fax

2 THE BUSINESS CASE The shifting realities of the corporate environment are creating a number of new challenges and pressures and forcing legal departments to change the way they conduct business. The overarching in context of the business. Demonstrating value also means establishing appropriate metrics and measurements both to drive the desired behavior and evidence successes. In short, legal departments internal business clients. counsel were expected to have business acumen as well, so that they were providing legal advice in the management. Figure 1 illustrates this concept. Consistent Delivery Efficiency & Predictability Business Acumen Substantive Legal Knowledge 2011 Huron Consulting Group. All rights reserved. Proprietary & Confidential. Fig. 1 Evolving Expectations for Legal Department Success Drives Need for Project Management Maturing expectations of clients + Cost Reduction Pressures + Internalizing work + Unbundling legal services + Multiple players involved +Outside Counsel no longer the General Contractor = Legal Departments must take on Project Management to provide direction, continuity and coordination. Legal departments have responded to these expanding expectations and predictability. Some departments are appropriate, unbundling legal services (for example, reallocating house), and increasingly using value-based counsel, outside counsel, and outside vendors. While in the past the outside counsel was the general contractor coordinating the roles of any external vendors such as court reporters and experts, that is In order to provide the necessary direction, continuity, and coordination to these matters, the legal department must embrace project management. While many legal departments may have in place some integrated these components into comprehensive project management, or are just beginning to do so 2 ACC thanks Nancy Jessen and Bret Baccus of Huron Legal for their work on this ACC Value Challenge Resource.

3 developments: the desire for value-based fee (VBF) arrangements and the proliferation of e-discovery appropriate for VBFs and whether the proposed fee arrangements are cost-effective for those matters and manage the more and different types of players and timelines involved in e-discovery. management results in improved use of resources and improved performance against budgets. Because provides the context for team members to understand expectations and outcomes. Ultimately, project management results in more effective planning, cost control, resource allocation and appropriate risk management throughout the duration of a case/project, giving project team members the structured tools to make deliberate, fact-based decisions. ACC Resources: The Business Case THE BASICS Project 1 In this context, the word temporary does not apply to the resulting product or service itself, but rather means that every project has a needed. 2 Project Management 3 It is accomplished by applying and integrating the following project management processes: initiation, planning, execution, monitoring and control, and closure. 4 In the legal department, merely having in place matter management software integration of planning, budgeting, and communication. 1 A Guide to the Project Management Body of Knowledge (PMBOK Guide) 5 (3d Ed., Project Management Institute 2004). 2 Id. 3 Id. at 8. 4 Id. ACC thanks Nancy Jessen and Bret Baccus of Huron Legal for their work on this ACC Value Challenge Resource. 3

4 Role of the Project Manager Establishing communication mechanisms Who should perform this role in legal project management will vary depending on the organization. judgment calls and balancing priorities. On the other hand, most lawyers are not trained in project PRACTICE TIP Other Corporate Resources - Other departments may have the following resources: When to Initiate a Project involve a certain level of spend. 4 ACC thanks Nancy Jessen and Bret Baccus of Huron Legal for their work on this ACC Value Challenge Resource.

5 Overview of the Project Management Process People within the bounds of several major constraints to affect at least one of the others. Traditional constraints: scope, time, and cost. 5 For Scope legal projects, an additional constraint must be considered: people Time Cost illustrates the interrelated constraints on legal projects. For example, if the scope of a legal project remains the same but the time schedule 2011 Huron Consulting Group. All rights reserved. Proprietary & Confidential. Fig. 2 Constraints on Legal Projects a reduction in available funding might mean that various components of the project that contribute to each factor - then executing the project in accordance with the plan while continuously monitoring, controlling, and adjusting as necessary. As This ACC Primer will outline step-by-step the project management process. The Primer includes illustrations, tables, and case studies to assist users in the process. which will be discussed in the sections that follow: Scope Schedule/People/Budget will be accomplished Conduct of Legal Matter Review SCOPE SCHEDULE PEOPLE BUDGET CONDUCT OF LEGAL MATTER REVIEW 5 Id. ACC thanks Nancy Jessen and Bret Baccus of Huron Legal for their work on this ACC Value Challenge Resource. 5

6 ACC Resources: The Basics Webcast: Applying Project Management to Legal Matters (May 13, 2010) Project Management How to Plan a Business Process Review Project Legal Project Management Prudential Financial Inc.: Project Management as a Disciplined Approach to Successfully Integrating Major Projects SCOPE SCOPE SCHEDULE PEOPLE BUDGET CONDUCT OF LEGAL MATTER REVIEW The scope. The scope should be and realistic, and should be divisible into discrete tasks. It serves as the basis for all further team members and clients, and assessing the desired deliverables and timetable. Issues to address ultimately be provided.. 6 ACC thanks Nancy Jessen and Bret Baccus of Huron Legal for their work on this ACC Value Challenge Resource.

7 A project charter How, to whom, and how often will you communicate the progress of the project? It is important communication will be made, whether by meeting, , report, or other. The plan should also identify outcomes of the communication and specify responsibility for following up on any action items. A sample communication plan is attached in the Appendix. PRACTICE TIP support or opposition to the project. From that analysis, a specialized communication approach can be incorporated into the overall plan. Case Study: M&A Example major issues such as: Component factors of these issues might include the following: ACC thanks Nancy Jessen and Bret Baccus of Huron Legal for their work on this ACC Value Challenge Resource. 7

8 regulations, employment laws, industry regulations, etc.) What agencies are implicated? developing the schedule and budget for the project and assigning roles and responsibilities. As with all projects, communication plans are important for M&A projects. There are a number of disparate groups involved. M&A projects typically involve most corporate business groups including and legal. Depending on the nature of the transaction, they also also may involve other service providers. The communication plan for an M&A project would need to take into consideration all these groups and specify which players should receive which communications and when. Because of the sensitive nature of the project, the plan would also need to specify who has access to what level of information. ACC Resources: Scope ACC thanks Nancy Jessen and Bret Baccus of Huron Legal for their work on this ACC Value Challenge Resource.

9 SCHEDULE, PEOPLE AND BUDGET SCOPE SCHEDULE PEOPLE BUDGET CONDUCT OF LEGAL MATTER REVIEW Begin with the major divisions project phases and milestones resources and cost, but many novice project planners fail to account for them when developing the progress or completion of a phase. For example, some milestones in a government investigation might include initial case assessment, document review, case and document preparation, interviews, court appearances, discovery, negotiation, and settlement. reviewers, and the reviewers conducting the actual review of the documents. The project plan becomes the primary tool for managing the project. A sample project plan is attached in the Appendix. Schedule: Estimated Time factors will affect the schedule. To begin developing the schedule, estimate the number and level of date such as a trial date, discovery deadline, deal closing date, or other target event, you must also use meet the deadline. The schedule developed from these estimates should include begin and end dates of the project plan. ACC thanks Nancy Jessen and Bret Baccus of Huron Legal for their work on this ACC Value Challenge Resource. 9

10 Remember, time is one of the primary constraints of project management if it changes, it can have a People: Roles and Responsibilities Developing the project plan also includes determining who will be responsible for completing the project: attorneys, paralegals, support staff, other resources within the company, outside counsel, and vendors. PRACTICE TIP Using RACI Diagrams diagram. A RACI diagram describes the roles of various teams or people involved in delivering a project. The RACI diagram provides structure and clarity to cross-functional roles on a project. 1 R sons or groups. Accountable - The resource ultimately answerable for the correct and thorough completion of Consulted - Those whose opinions are sought. Consulting implies a two-way communication. I one-way communication. A sample RACI diagram is attached in the Appendix. 1 project. ACC Resources: People The In-House Attorney as Project Manager 10 ACC thanks Nancy Jessen and Bret Baccus of Huron Legal for their work on this ACC Value Challenge Resource.

11 Budget: Estimated Costs Budget drivers include hours, rates, and expenses. If outside counsel are involved in the project, it what is the best way to spend their time, and what is the opportunity cost for other things they could be doing? Other company personnel may have actual dollars associated with their time, e.g., IT personnel or a trained project manager. Both the law department and outside counsel and should be PRACTICE TIP Value-Based Fees retainers (whether or not combined with success fees or collars). Scoping a project carefully as ACC Resources: Budget Sample Case Budget Template How to Improve Collaborative Budgeting How to Prepare a Litigation Plan and Budget ACC Resources: Project Plan Outside Counsel Management: Project Management for Successful Value-Based Relationships ACC Resources: Value-Based Fees ACC thanks Nancy Jessen and Bret Baccus of Huron Legal for their work on this ACC Value Challenge Resource. 11

12 PRACTICE TIP Tools/Applications for Project Management utilized. The table below lists some of the necessary project management tools along with existing law department systems that can be used to develop them. Component Scope Resources Time Cost Communications PM Tools Project Charter RACI Communication Plan Existing Law Department Systems Excel MS Project Excel MS Project Matter Mgmt/eBilling Law Firm Billing System Matter Mgmt/eBilling Law Firm Billing System ACC Resources: Tools Project Management Tools and Templates Avoid Litigation Surprises with Legal Project Management Software 12 ACC thanks Nancy Jessen and Bret Baccus of Huron Legal for their work on this ACC Value Challenge Resource.

13 CONDUCT OF THE LEGAL MATTER SCOPE SCHEDULE PEOPLE BUDGET CONDUCT OF LEGAL MATTER REVIEW Now that the plan is in place it is time to conduct and manage the legal matter. Project Initiation: Setting Expectations project charter should be reviewed and discussed with all team members so that they are fully aware the team who is expected to have a role in the project. The meeting may also be attended by other so that all parties understand what is to be done, by whom, and when, as well as the applicable budget. Manage the Team these meetings will depend on the length of the project and how fast it progresses. For projects with or monthly meetings. During these regular meetings, the project manager should assess, address, and of the relevant parameters. PRACTICE TIP Project Management Review vs. Substantive Review Project management review of a matter should be conducted independent of substantive review, so that the project management issues do not become overshadowed. In a litigation matter, for example, substantive review might include reports on facts developed in discovery and the result- Project management review, on the other hand, is a function of monitoring progress of the project against the plan. Project management review of the same litigation would include matters such as on successful uploads of various databases and the percent of data review that is complete. ACC thanks Nancy Jessen and Bret Baccus of Huron Legal for their work on this ACC Value Challenge Resource. 13

14 Reporting and Management The project plan and budget are the primary tools/reports that the project manager can use to manage the project. party. It may also include the budget, although the budget may be a separate document. The project. It is important to use accrual accounting methods for these reports to avoid any unnecessary surprises down the road. in the project plan and budget. A good status report is no more than a page in length and provides. A sample status report is attached in the Appendix. Evaluating. operations review of the delivery terms. Manage Communications appropriate to amend the communications plan, for example to add to the audience, change the 14 ACC thanks Nancy Jessen and Bret Baccus of Huron Legal for their work on this ACC Value Challenge Resource.

15 As the project develops, new information will become available. The new information may necessitate the issue, and the pros and cons of adjusting the plan or budget, recognizing the interrelated impact of changing any of the major plan constraints (scope, schedule, people, and budget). project. within the individual component so that the net effect on that parameter will remain the same. For must determine which adjustments are acceptable and which are not. In most projects, one or more of deal closing date, scheduling is of the highest priority. For projects that are less mission-critical, budget Careful attention to the regular project plan progress reports and budget variance reports and regular communication with project team members will eliminate surprises and hopefully limit the need for Adjustments to Scope The project scope may be adjusted for a variety of reasons. Occasionally, it may be broadened because clients (evolving terms of a deal). It may be broadened because the initial evaluation of the true scope was incorrect. Depending on the nature of the project, the scope may be narrowed if the budget or Adjustments to Schedule Schedule adjustments may be necessary for a variety of reasons. Adjustments to schedule may be the project completion, these adjustments may result in a compression of the allowed time for later shortened if the situation changed, for example, if a party to a deal threatened to withdraw if the ACC thanks Nancy Jessen and Bret Baccus of Huron Legal for their work on this ACC Value Challenge Resource. 15

16 include change in the project scope, increase or compression of the project schedule, or incorrect Budget Variances and Adjustments is based on assumptions and predictions. As the project progresses, more information will become available enabling a more precise and accurate project plan. Often the most impacted component of people may necessitate adjustments to the budget. Any noted budget variances should be discussed variances should be analyzed in concert with progress on the project plan, as they may be symptomatic of an incomplete or overly optimistic plan. Communicating Adjustments to Project Team and Clients whether a change is within the scope of the project or whether it will affect the schedule, budget, It is important to objectives. in advance. Be sure to include communications regarding adjustments in the communication plan so that when adjustments happen, the entire team will be on board. Case Study: Discovery Example In a hypothetical e-discovery project, a budget to variance report might show the following when the project had reached the document review phase. In this hypothetical, the plan is essentially on target. phase came in a little over budget, the other two completed phases were under budget and the near the budget for another phase or an adjustment to the overall budget. 16 ACC thanks Nancy Jessen and Bret Baccus of Huron Legal for their work on this ACC Value Challenge Resource.

17 Project Stage % Complete Budget Actual Variance Planning & Administration $500 $450 $50 Collections $800 $825 ($25) $600 $595 $5 Processing $2,000 $1880 $200 Early Case Assessment $5,000 $4,250 $750 Document Review $10,000 $3,000 $7,000 Production $15,000 $0 $15,000 Total $33,900 $11,000 $23,030 or new repository of potentially responsive documents with a higher than anticipated volume of data, or if the court ordered broader discovery, the scope would have changed. There might be cause for ACC thanks Nancy Jessen and Bret Baccus of Huron Legal for their work on this ACC Value Challenge Resource. 17

18 PRACTICE TIP Change Management using change management best practices as you roll out the new program to ensure it is accepted tips for success follow. CHANGE MANAGEMENT FRAMEWORK Setting the Stage coalition Deciding What to Do and strategy Making it Happen understanding and buy-in the vision term wins Making it Stick approach TIPS FOR SUCCESS Establish clear success metrics for the project and 3. Establish a project steering committee with leadership from affected areas 4. Identify an internal project leader 5. Supplement with an empowered core team 6. Raise awareness of who is part of the project team 7. feasible -- have an elevator speech message consistent throughout the project and organizational culture will be resistance 1. Communicate early and often using multiple methods them enablers of your project, not the owners 3. Encourage consistency in senior leadership behaviors to support the vision contributors be willing to discuss the good, bad, and the ugly of the change effort 3. Recalibrate success metrics once improvements have been made 18 ACC thanks Nancy Jessen and Bret Baccus of Huron Legal for their work on this ACC Value Challenge Resource.

19 REVIEW SCOPE SCHEDULE PEOPLE BUDGET CONDUCT OF LEGAL MATTER REVIEW Review Outcome with Client It is important to review the project outcome with the client. This review will (1) satisfy the client communication and expectations for future similar projects. Routinely reviewing project outcomes with clients is consistent with the expectations of in-house counsel discussed in the Business Case section of this Primer. Capture (and Communicate) Lessons Learned Every project yields information that will be useful for future project planning. The completed project or others who will be managing and performing similar projects and, where appropriate, clients and management. ACC thanks Nancy Jessen and Bret Baccus of Huron Legal for their work on this ACC Value Challenge Resource. 19

20 Conclusion: Legal Project Management Best Practices resources and improved performance against budgets. Following are some suggested best practices to being formally project managed the department culture. 20 ACC thanks Nancy Jessen and Bret Baccus of Huron Legal for their work on this ACC Value Challenge Resource.

21 APPENDIX ACC thanks Nancy Jessen and Bret Baccus of Huron Legal for their work on this ACC Value Challenge Resource. 21

22 Sample Project Charter Date: Overall Project Description: Executive Sponsor: Team Lead: Team Members: Goals: Scope: Key Assumptions: Exclusions from Scope: Risks: Key Deliverables: Key Project Dates: 22 ACC thanks Nancy Jessen and Bret Baccus of Huron Legal for their work on this ACC Value Challenge Resource.

23 Frequency/Date Communication Communication Vehicle Recurring Monthly Ad Hoc / As Needed Special Project Related TBD TBD Target Audience Sample Communication Plan Content Author Communicator Date Sent ACC thanks Nancy Jessen and Bret Baccus of Huron Legal for their work on this ACC Value Challenge Resource. 23

24 Sample Project Plan Task Name % Complete Start Date End Date Lead Resource Team Members [Phase] [Phase] [Phase] 24 ACC thanks Nancy Jessen and Bret Baccus of Huron Legal for their work on this ACC Value Challenge Resource.

25 T a s k s Sample RACI Diagram Roles and Responsibilities Task Description Person A Person B Person C Person D R A R A R R R A R R R A A C I I A I I R R A R R R A A I I I (R) Responsible (A) Accountable (C) Consulted ( I ) Informed ACC thanks Nancy Jessen and Bret Baccus of Huron Legal for their work on this ACC Value Challenge Resource. 25

26 Sample Budget Code [Phase] Internal Fees External Fees Expenses Total Assumptions Code [Phase] Internal Fees External Fees Expenses Total Assumptions PROJECT TOTAL 26 ACC thanks Nancy Jessen and Bret Baccus of Huron Legal for their work on this ACC Value Challenge Resource.

27 Sample Status Report Budget Summary Tasks Completed Since Last Update Upcoming Tasks Questions / Issues / Risks Questions / Issues / Risks Resp. Mitigation / Update Project Timeline Update Status Activity Date Completed Target Date On Schedule Caution/Issue Schedule Issue Completed 27