Creating Efficiencies, Improving Results The “Virtual” Law Firm Creating Efficiencies, Improving Results

Today’s Topics What Is A VLF? Why Are Companies Forming VLFs? Benefits & Challenges Steps For Developing VLFs Keys For Success

What Is A Virtual Law Firm?

A “Virtual Law Firm” or “VLF” Is: A collaboration Between (1) in-house counsel and (2) their preferred outside counsel, irrespective of law firm boundaries To simultaneously enhance (1) the quality of legal services provided and (2) improve the bottom lines of both in-house legal departments and the law firms with whom they work.

Why Are Companies Forming VLFs?

Case Study: Toyota

Benefits & Challenges

Benefits Collaboration Consistency Subject Matter Experts Proactivity Trust Cost Savings Commitment Management of Legal Spend Value Leverage-ability Results Efficiency

Challenges Time Relationships Communication Fairness Selection Quantifying Results Feedback Management Stakeholder Involvement

Steps For Developing A VLF

Step One: Do Your Homework

Step Two: Establish Goals

Step 3: Involve Key Stakeholders (Both Inside And Outside Of Legal)

Develop And Disseminate Competition Framework Step 4: Develop And Disseminate Competition Framework

What CLOs of S&P 500 Companies Look For In A Preferred Provider CLOs report: Cost not as important as fit and past experience “[N]oted for results and stood out from others” “[G]ood personalities and who was efficient” “[F]irms with whom [we] already have relationships” “[T]he way they do business” “[T]he type of people they are” “[S]ame…work ethic” “[G]ood synergy between us” -John C. Coates, Michelle M. DeStefano, Ashish Nanda and David B. Wilkins, Hiring Teams, Firms and Lawyers: Evidence of the Evolving Relationships in the Corporate Legal Market, 36 Law & Soc. Inquiry 99 (Fall, 2011) at 1011 (2006-07 Interview and Survey Data from 166 CLOs of S&P 500 Companies)

Select Preferred Providers Step 5: Select Preferred Providers

Step 6: Team Build

Step 8: Create formal communication channels

Step 9: Measure Performance, (Including Financial And Other Important Metrics) And Immediately Address Concerns

Keys To Success

The Relationship Begin With A Manageable Section Of The Law Department’s Work Recognize The Portfolio Of Work May Be Dynamic Communication, Communication, Communication Firm /Company Culture Compatibility Support The Outside Lawyers You Have Selected

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