Innovation in Law Department Operations: Enterprise Legal Management or the 21 st Century David Cambria, Archer Daniels Midland (ADM) Cole Morgan, Onit June 23,

Session Agenda Welcome & Introductions – Cole Morgan (Onit) Innovation in Law Department Operations: ELM for the 21 st Century Discussion Topics (David Cambria, ADM) – Why systems of record are not enough to drive operational improvements at ADM – Why e-billing and matter management technology only represent a “fraction” of the legal department’s needs – Why process, workflow and collaboration are critical for the success of his legal department – How a business automation tool solves all process needs beyond e-billing and legal spend management – Key benchmarks and metrics that drive innovation and transformation in legal operations and performance management 2

Definitions The term Enterprise Legal Management (ELM) was coined about 12 years ago to connote broad support of everything that Legal Departments are involved with, but…. It has come to be practically defined as simply Matter & Spend Management Matter Management is essentially the database that legal project information is stored in, such as parties, details, vendors, etc. Spend Managment is system that handles the electronic invoices, runs business rules against the line items providing audit and validation functions, and is where financial anayltics are run 3

Results of > $1 Billion Spend on Matter & Spend Management in the Last 20 Years Almost all ROI has resulted from Spend Management & Electronic Invoicing…likely returning 2x what was spent on both Matter & Spend Management solutions Companies have struggled to both – Get their attorneys engaged in their Matter Management systems and... – To achieve some sense of fulfilment around it’s use and ROI Since the consolidation started about 5 years ago, the ELM market has stagnated 4

Common Legal Department Issues Do not have one system of record to manage its risk and identify its outside counsel spend Do not have an ability to easily identify open matters (projects, circumstances, claims and law suits) company-wide No consistent and verifiable process to identify risk on open matters Reserve/Exposure reporting across the organization for open matters is a fragmented process and done manually No automated and auditable process to ensure settlements are strategically evaluated and properly authorized 5

After 25 years … virtually all legal work & processes are STILL executed outside of these systems This leaves other processes in the legal department fractured Work migrates to and spreadsheets Processes are encapsulated in “forms” and flowcharts Excel is used for tracking and reporting And these tools are simply breaking down at scale 6

Matter & Spend Management are foundational…but represent just a fraction of the needs of a Legal Department 7

Enterprise Legal Management Market Trends Gartner predictions from Feb Market Guide Report for ELM Solutions: – Adoption of ELM solutions will increase from 20 to 50% by 2020 – ELM adoption can “optimize GC’s day to day operational efficiency by automating and streamlining tasks and process” – ELM also “enables legal departments to keep pace with enterprise’s digital business” Increased investment & adoption of ELM because: – 1 out of 3 GCs being targeted by a regulator over the last 2 years (2016 ACC Chief Legal Officers Study) – 1/3 of in-house counsel say company experienced a data breach (ACC) – Half of all law departments budgets remain flat or reduced since 2010 (Altman Weil’s 2014 Annual Chief Officer Survey) 8

Gartner’s Perspective on ELM Law departments must provide better service to their businesses and improve operational efficiency: – “In addition to the responsibility of managing documents, e-billing, matters and outside counsel, it’s equally important for corporate legal departments to be involved in business processes and continuously optimize the organization’s processes to improve business performance against goals and objectives. In an enterprise legal management context, BPM includes the automation of manual processes through methods such as workflow and collaboration functionality.” – Gartner: Magic Quadrant for Enterprise Legal Management, 23 Oct

Hyperion Research: Where are General Counsel Investing? 10

Background ADM was using an existing “traditional system” for e-billing/ matter management. Implementation was limited to US and parts of Europe. Data was only entered when outside counsel was retained. Very little meaningful matter information was entered into Serengeti, and what is there was typically inaccurate. Data entry is fragmented and is inconstantly across business units (South America, and most of EMEA did not open matters in Serengeti). 11

AS-IS State & Landscape ADM did not have one system of record to manage its risk and identify its outside counsel spend. ADM did not have an ability to easily identify open matters (projects, circumstances, claims and law suits) company-wide. ADM had no consistent and verifiable process to identify risk on open matters. ADM Reserve/Exposure reporting across the organization for open matters was a fragmented process and done manually. ADM had no automated and auditable process to ensure settlements are strategically evaluated and properly authorized. 12

Distill Best Practices into Simple Processes We implement disruptive changes within the department, manage the disruption and ensure adoption to department processes and policies. Vision Onit Matter Management Significant Matter NDA’s Ebilling Shipping Risk Invention Disclosure Settlement Requests Legal Holds 10 q COI 13

Phase l Objectives Ensure that Leadership Team has visibility to all matters at ADM world wide. Ensure that Leadership Team has real-time access to legal spend world wide and that spend is actively controlled. Implement consistent processes to minimize low value administrative tasks while providing the leadership team visibility to legal risk across all ADM business units (e.g. reserve process). 14

Key Processes Matter Intake and Routing Early Case Assessment Liability Reserves Invoice Review and Approval Settlement Authority Requests Matter Disposition Shipping Risk Management 15

Change Management Create a user interface that conveys a natural extension of useful business processes and procedures. Ensure purpose behind every piece of information requested by the system. Implement system validations and behaviors that drive prescribed business processes and procedures. 16

Components of an Onit App Enterprise Software Information & Data Enterprise Social Software Collaboration & Communication BPM Coordination & Process Knowledge Work 17

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David Cambria Archer Daniels Midland Company Global Director of Operations – Law, Compliance and Government Relations Cole Morgan Onit Director, Implementation Operations