1. The ACC Value Challenge Reconnecting Cost with Value INSERT EVENT INSERT DATE INSERT PRESENTER www.acc.com/valuechallenge Rev. 2/2009

2. Why now? Escalating legal costs without improved efficiencies Economic pressures on both sides Not a matter of blame; both sides need to make changes

3. What clients want Themes from the regional sessions Better management of the legal function Focus on outcomes and results -Counseling (not just content) -Advocacy (not just process) Costs that equate with value

4. Firms might consider Fixed fees for entire matters or stages Taking on whole portfolios Other alternative billing approaches and relationships Setting budgets, then holding to them Leaner staffing with greater continuity Better training and mentoring Don’t reinvent the wheel; pass along the savings of knowledge management

5. Clients might consider Better communication of expectations and budgets up-front Returning to longer-term, trusted relationships (versus RFPs, audits, etc.) – hire the firm and not just the lawyer Giving firms greater continuity of work

6. Actions underway Chapter and regional sessions where firms and in-house counsel can talk candidly Toolkit on the ACC web site, including economic model Publicizing success stories Better metrics (not average profits per partner, but leverage, turnover, overhead, etc.) ACC Value Index

7. Actions underway One-page “Covenant with Counsel” between the firm and client: - Based on principles used by FMC Technologies and DuPont - A starting point for discussion

8. What you can do... “Meet, Talk, and Act” Pick your three best clients or firms Schedule a brown bag lunch with each Talk candidly: “Working together, how do we improve the value of legal services?” Try out some of the ideas, even on a small scale Periodically assess efforts; expand what works Share success stories

9. In the end, it’s all about value.

10. Possible topics for discussion 1.How to re-establish trust and improve our relationship? 2.How to assure adequate work flow so outside lawyers understand the client better and can be more efficient? 3.How to get junior lawyers better trained, more reasonably priced, more on the front line, with less turnover? 4.How to better budget and manage costs and staffing? 5.How to institutionalize the relationship? 6.How to evaluate progress and performance? 7.How to create a culture of continuous improvement, on both sides? 8.Draft a Covenant between client and firm?

11. Possible goals for discussion 1.Improve the value of legal services 2.Decrease costs 3.Keep the client out of trouble 4.Maintain firm profitability / create a sustainable practice 5.Develop approaches that can be scaled up and tried in other areas 6.Improve training and career satisfaction, on both sides, and reduce attrition

12. ACC Value Challenge Contacts Questions, ideas, success stories to share? Please contact us: Susan Hackett, ACC’s General Counsel (hackett@acc.com) Renee Dankner, ACC’s Associate General Counsel (dankner@acc.com) Michael Roster, Chairman, ACC Value Challenge Steering Committee Chairman. [2001 Chairman, ACC Board; retired General Counsel, Golden West Financial and Stanford University; former Managing Partner of Morrison & Foerster, Los Angeles (mroster@earthlink.net)