1. Session 402: Innovation in Outside Counsel Management Lucy Bassli, Assistant General Counsel, Microsoft Corporation Carla Goldstein, Associate General Counsel & Director of Strategic Initiatives, BMO Financial Group Bob Harchut, VP & Associate General Counsel, Glaxo-Smith Kline

2. Agenda Carla – Tool for driving the right engagement Bob – Future of standardizing law firm services Lucy – Outsourcing best practices, even for law firms

3. Carla Goldstein New Tool for New Times

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10. Lucy Bassli Real Outsourcing to a Law Firm

12. Changing the Conversation: Operating Models and Pricing Models are Not the same thing! Hourly Rates Traditional law firm business model Time worked = timed billed Best bet is discount based on spend Alternative Fee Arrangements Flat fee based on aggregating hourly rates Risk of workload fluctuation Offers predictability Transaction or Outcome Based Need to have predictable workload Works best for high-volume work Requires operational rigor and experience 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? Partners vs Associates? Transaction volumes! SLAs! Metric-based performance?

13. Nothing New: Do More Contracting with Less Resources 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 Law Firms LPOs Non- Lawyers US Licensed Lawyers Practice of Law SKILLS COST NEW Concept*

14. Look how far we’ve come…

15. Best Practices - Before Transition Plan, plan, plan – Time to review options – Time to train the firm – Time to explain to the internal team what is changing Know your process – Map it, identify areas for improvement, clarify and simply process – Decide what can be outsourced and what needs to be kept in house (and what can you just stop doing) Define a new operating model – Manage the impact of outsourcing on FTEs – how will roles change – Prepare and communicate to support a positive transition Technical set up for the firms – Plan early and have the appropriate support – Discover options for collaboration on work

16. Best Practices – During Transition Think about how best to transfer knowledge – Create operating manual with clear black & white rules – Define escalation process – Devote time to creating good training Who will present? What is the best format? Keep the vendor engaged Develop and manage an outsourcing transition plan: – Need project management help! – Continually reassessing – Transition continues after go-live – Do a “post mortem” Establish clear objectives and KPIs – Define what vendor is accountable for – Set clear expectations – Make sure they know you are still involved and interested Feedback loop – MSFT feedback on firm, and vice versa

17. Best Practices – Post Transition Stay in close contact Make sure both partied understand the long-term vision Monitor performance Discuss improvement opportunities Expect efficiencies to grow Consider expansion of outsourced duties

18. Bob Harchut The Future of Standardizing Law Firm Services