1 Legal Team Six Integrating operations, accountability, and management of outside counsel and legal spend Adwoa Seymour Chris Emerson Christian Zust

What people don't realize is that professionals are sensational because of the fundamentals. –Barry Larkin

Pricing –Budget everything –Document assumptions –Align interests by using AFAs Process Improvement –Conduct after action reviews –Explore opportunities to standardize –Create and monitor KPIs Project Management –Monitor tasks –Institute basic alerting –Implement change management plan Practice –Initial matter assessments –Regular “touch base” meetings –Embrace technology Fundamental Best Practices

Problems with contracting: –Lack of defined processes –Unclear guidelines –No centralized storage repository –No way to reliably measure performance The Red Robin Story

Heroes who solved our client’s issues through a combination of: –Incredible foresight –Unparalleled intelligence –Superhuman operational abilities How We’d Like to View our Role

6 We turned to the basics What Really Happened

Entered into a fixed fee arrangement for work subject to the contracting process –Provided RR price certainty –Incentivized BC to streamline process –Simplicity of arrangement allowed RR and BC to focus on higher value objectives Back to the Basics - Pricing

Standardized intake processes and created approved clause library –Allowed legal to review 100% of contracts in fraction of the time –Streamlined negotiation processes and eliminated risk of inconsistent terms Created KPIs to monitor performance –Allows RR to monitor efficacy of tweaks to process –Encourages continuous incremental improvement Back to the Basics - Process Improvement

Basic Alerting & Monitoring Implemented: –Ensures key dates – renewal, termination, etc… - don’t slip through the cracks –Keeps contracts moving through the process –Warns management when tasks are at risk of falling behind Back to the Basics – Project Management

Contract Management Solution implemented to: –Automate portions of intake and approval process –Enforce new procedures “behind the scenes” Generates standardized initial assessment of proposed contract Automatically routes contract for proper level of approval Back to the Basics – Practice

Reduced Risk: 100% of high- impact contracts approved via new process Improved Timeliness: 90% of contracts now delivered on time Increased Predictability: 97% of contracts adhere to standard review process and > 80% use approved clauses Enhanced legal department reputation internally 2016 ACC Value Champion Net Result – Legal Team Six

Problems with litigation matters: –Unpredictable legal spend –Poor intake and“triage” processes –Absence of high quality historical data –Lack of communication with outside counsel The (anonymous client) story

“What gets measured does not necessarily get managed. Obtaining information is not the same as acting on it. But measurement is a good starting point.” –Doing it Better: Diversity at Bank of America, Association of Corporate Counsel. The Docket, August 27, 2015 Measurement v. Action

Budgets and related assumptions made mandatory for all matters where spend expected to exceed a nominal threshold: –Legal department knows what it can expect for its money –Outside counsel takes only steps necessary to reach intended outcome –Beginning to collect good data around budgeting process –Critical scope/scale information available for project managers Back to the Basics - Pricing

Transition from Excel spreadsheet to a case management database –E-billing system, simple database, etc… Focus on data critical to collaboration and early strategic decision making Data points to consider: –Preliminary case information –Assigned counsel –Diversity metrics –High risk issues –Approximate exposure –Settlement negotiation history –Status of matter –Upcoming deadlines –Suggested defense strategy Intake and Triage Process

Basic task monitoring implemented: –Assumptions from budgeting process used to track progression of matter and identify tasks that are “at risk” Change management plan created: –Allowed for rapid response of senior resources when high risk issues arose –Facilitated structure where senior resources not involved in lower risk and complexity matters Back to the Basics – Project Management

After action reviews conducted: –Assisted in formation of best practices to institute and pitfalls to avoid –Provided robust resolution data for use in future Pricing and Process Improvement initiatives Specialized teams formed to handle high volume activities: –Higher efficiency –Lower risk due to standardization KPIs created for use in future process improvement initiatives Back to the Basics - Process Improvement

Initial Matter Assessments instituted: –Allowed law department to leverage resources more intelligently –Informed tweaks to improve change management procedures “Touch base” meetings set up at regular intervals: –Law department and outside counsel remain on the same page –Transparency increased –Surprises eliminated Back to the Basics – Practice

Initial budgeting, assessment and triage processes make transition from hourly to AFAs much easier Fewer cases spin out of control under a formal change management plan Specialized teams control cost and seamlessly handle issues subject to oversight High quality data capture can be leveraged in future pricing/process improvement initiatives Communication lines open between legal department and outside counsel, setting the stage for deeper partnership Net Result – Training the next Legal Team 6

20 Doubting this is something you can do?

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22 Start building a strong foundation today Earlier in your operational development?

23 Narrow your focus to improving a foundational best practice or two Don’t bite off more than you can chew

Pricing –Budget everything –Document assumptions –Align interests by using AFAs Process Improvement –Conduct after action reviews –Explore opportunities to standardize –Create and monitor KPIs Project Management –Monitor tasks –Institute basic alerting –Implement change management plan Practice –Initial matter assessments –Regular “touch base” meetings –Embrace technology Foundational best practices

25 Already have some of the pieces?

26 String your best practices together and build a system where…. Recognize they are interrelated

27 The whole is greater than the sum of its parts

Pricing –Budget everything –Document assumptions –Align interests by using AFAs Process Improvement –Conduct after action reviews –Explore opportunities to standardize –Create and monitor KPIs Project Management –Monitor tasks –Institute basic alerting –Implement change management plan Practice –Initial matter assessments –Regular “touch base” meetings –Embrace technology But don’t forget the fundamentals!

Success is neither magical nor mysterious. Success is the natural consequence of consistently applying the basic fundamentals. -Jim Rohn

30 Questions?