Matter Management Best Practices for the Corporate Legal Department. LDPG5 August 30, 2012
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1 Matter Management Best Practices for the Corporate Legal Department LDPG5 August 30, 2012
2 Speakers Lisa Girmscheid Legal Project Manager, Law Department Manager, a Generalist More than 25 years experience in legal field 17 years managing law departments Julie Richer Legal Technology Program Manager, American Electric Power 12 years in IT and 4 years in the legal department with legal operations, ediscovery and litigation support experience Rebecca Thorkildsen Senior Director, HBR Consulting (formerly Hildebrandt Baker Robbins) More than 15 years consulting to the legal industry on topics including law department management, operations and technology
3 Session Assumptions There are a large number of matter management best practices Believe the current audience to be relatively sophisticated users of matter management We have focused on best practices for using the MMS to support department objectives The MMS can do more than track costs it can demonstrate value
4 Polling Question What types of reports do you routinely run from your matter management system? Financial (costs, budgets) Inventory (matter count, workload) Status Efficiency and Effectiveness (cycle times, outcomes) Trend Risk Value (recoveries, savings, value delivered)
5 Session Agenda MMS the realm of possibilities Using the MMS to demonstrate more than just costs Maximizing value of external spend Demonstrating value of internal services
6 Polling Question Have you extended reporting beyond the canned reports offered by your matter management vendor? Which of the following types of information do you collect about your matters? Matter budget Risk or significance rating Status Time spent working on matters (in house) Favorability Costs associated with case outcomes (judgments, settlements, payments) Lessons learned
7 Best Practice Law Department Matter management functions within the broad context of all technology supporting the business of law Technology Framework
8 Best Practice Use of Matter Management Departments that evolve a wide variety of financial, operational and performance management reports maximize the return on investment of their system. Practice Tools Document Mgmt E-Billing Matter Mgmt Office Apps Run Significant Matter Status Reports Identify new, high risk matters Analyze cost data Conduct trend analysis Measure cycle time, performance Monitor compliance with internal processes Customized and ad-hoc docketing and status reports Benchmark
9 Cost & OC Management Purpose: Ensure that legal team is following cost containment policies and monitor results of cost containment approaches
10 Risk & Performance Purpose: Monitor high risk / complexity / cost matters and associated performance
11 Workload & Effectiveness Purpose: Identify spikes in number or complexity of matters for a particular matter type and use to identify legal resource requirements
12 Value & Quality Service Purpose: Ascertain if outsourced legal work is delivered for comparable cost and quality Matters Outsourced Report From 01 December 2011 To 31 December 2011 Matter Type = Employment - HR; Matter Sub Type = Discrimination Suit Average In-House Matter Cost For Last Year: $185,000 Matter #/Name Case Owner Open / Close Dates Total Matter Cost Amount Over In- House Average Favorable? Vendor Reason Outsourced HR Jones, C HR Marshall, P HR Murphy, L HR Allister, A Carol Miller Carol Miller Ehab Shourky Jim Heilander 7/18/10 / 8/11/11 $210,000 $25,000 Y Firm 1 Needed Special Expertise 1/23/11 / 9/30/11 $300,000 $115,000 N Firm 2 Required by In House Client 1/25/11 / 3/15/11 $54,000 -$131,000 Y Firm 1 High Risk of Reputational Damage 3/2/11 / 11/2/11 $97,000 -$88,000 N Firm 3 Needed Special Expertise Red Yellow Green COLOR KEY Cost Exceeds Internal Average and Matter was Unfavorable Cost Exceeds Internal Average and Matter was Favorable Cost Below Internal Average and Matter was Unfavorable Cost Below Internal Average and Matter was Favorable
13 Types of Data Points Required Matter management fields required to support similar types of reports as part of an overall performance management and metric plan.
14 Session Agenda MMS the realm of possibilities Using the MMS to demonstrate more than just costs Maximizing value of external spend Demonstrating value of internal services
15 Polling Question Do you perform outside counsel evaluations at close of a matter? Do you perform annual law firm reviews?
16 We get a bad rap Common perception: we are a cost center, never a profit center We have one client: The Company
17 We know money doesn t grow on trees We use technology to help us manage costs: Use e-billing to control outside counsel costs Provide business managers with accurate budgets and forecasts Use data from the past to make strategic decisions in the future Benchmark regularly to determine the best inside:outside counsel ratio
18 We earn our keep Pursue collections that are tricky Constant purveyors of risk avoidance solutions Find creative solutions to collect fees for services provided by the law department to external parties
19 Demand value from our providers System audits Meet diversity and other company goals Handle matters appropriately and with fiscal responsibility Law firm reviews: measure and regularly audit value from our firms
20 Law Firm Review Examples of Reports Associate 68% Partner 19% Paralegal 13% L210 Pleadings 6% L120 Analysis & Strategy 25% L240 Motions 14% L190 Other Case Assess. 24% L140 Doc/File Mgmt 31% E112 Court fees 12% E115 Depo transcripts 18% E110 Out of town travel 20% E111 Meals 14% E124 Other 21% E114 Witness Fees 4% E106 Online Research 11%
21 Session Agenda MMS the realm of possibilities Using the MMS to demonstrate more than just costs Maximizing value of external spend Demonstrating value of internal services
22 Polling Question Are you formally tracking or reporting on the value or quality of inside legal services?
23 Finding measures to add value may not be so easy to find
24 Internal Hours Legal HR IT Shipping Copying/Scanning Limitations Subpoenas Where does the cost go for subpoena response at your company?
25 Budgets How to improve forecasting 1. Who is entering budget? 2. Benchmarks? 3. What is being tracked? 4. What if budget goes over? 5. Are budgets checked upon matter closure?
26 Cycle Time Closing Matters Initial Demand Final Settlement/Payment Total cost of matter Outside counsel and vendors Internal time spent Vendor Evaluations
27 How To Get The Data Make fields in your matter management system required to ensure you will get your data. Teach your legal department why it is important to accurately fill out the fields. If it is personal, they will support it more. Validate the information that is being gathered early.
28
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