In-House Counsel’s Role in Modernizing Legal Services Lucy Endel Bassli, Assistant General Counsel

In-House Legal Resources Stratification Work Complexity Internal Outside Counsel - SME Outside Counsel – Managed Service Legal Process Outsourcing Business Owner Self-Help NEW Concept*

Nothing New: Do More Contracting with Fewer Resources COST Nothing New: Do More Contracting with Fewer Resources Law Firms NA? Subject matter experts and highly visible negotiations on critical contracts High-volume contract review (ie., procurement, NDA negotiations) Negotiations of key legal terms with opposing side Practice of Law NEW Concept* Axiom? Legal staffing companies? LPOs Non-Lawyers US Licensed Lawyers SKILLS

Changing the Conversation: Operating Models and Pricing Models are Not the same thing! Transaction volumes! SLAs! Metric-based performance? Hourly rates? Partners vs Associates? Operating Model = How the legal services are delivered Pricing Model = How clients pay for the legal services Who delivers services should not dictate the pricing model. Hourly Rates Traditional law firm business model Time worked = timed billed Best bet is discount based on spend Alternative Fee Arrangements Fixed/capped fees based on aggregating hourly rates Risk of workload fluctuation Budget predictability Transaction or Outcome Based Need to have predictable workload Works best for high-volume work Requires operational rigor and experience

Continuous improvement What makes this unique? End to end process Continuous improvement Data driven Outcome based

Look how far we’ve come…