1. Building the Business Case for Your ROT: Return on Technology
Steven O’Donnell, Director of Product Marketing, Mitratech
Brian Burlew, VP Operations - LCBE, Prudential
06/06/2017

2. The General counsel’s role is expanding
From the 1980’s until today, there have been three great forces pushing the General Counsel into a more strategic role
The Public, which is more apt to scrutinize corporate activities. General Counsels’ work includes protecting the organization from risk and shareholder actions
The Regulators, who are creating obligations globally through myriad regulations affecting all areas of business operation and creating material financial risk. Ability to audit creates reporting and visibility requirements that drive the need for new approaches
Crest - From the 1850's to the 1980's the wave was building out in the ocean, but the 1980's started seeing external forces start to shape the office of the general counsel as well.
Wind - The public - more apt to scrutinize corporate activities; start of the 24-hour news cycle; social media; evolved the office of the gc into shareholder negotiations than simply litigation and contracts
Rainfall - The regulators - more regulations and are asking whether you have a compliance program in place and whether you are mitigating the company's risk
Tide - The employees - increasingly willing to sue and counter-sue company policies and practices; global operations; rise of the whisteblower
(transition) Catching the Wave - Leading legal departments, many of whom are here today caught the wave of these forces by investing in people, process and technology to analyze the legal business, implement best practices, enhance collaboration to drive better results 
This next legal department is a great example of a legal department that caught the wave
The Employees, who are increasingly willing to sue and counter-sue company policies and practices, now operate across borders in a global environment
ACC Legal Operations 2017

3. Investment in legal technology continues to grow
Key issues driving corporate legal investment:
Class Action – 92% of CLOs expect class action to be the same or increase
Data Privacy & Security – 23% involved in data privacy disputes
Geopolitical – 35% changed plans to enter new markets
Intellectual Property – 17% targeted by patent troll
Regulatory Pressure – 28% targeted by regulator
Employee Health & Safety – 44% rated this as very or extremely important for 2017
Investments in technology even more pronounced in large enterprises
Source: Association of Corporate Counsel Chief Legal Officers 2017 Survey.
ACC Legal Operations 2017

4. The decision to purchase technology
As a legal operations professional, you know technology can make the team more efficient and collaborative and save the company money, but how to I measure the amount?
Return on Technology
The benefit to the buyer resulting from an investment in technology.
A high ROI means the investment gains compare favorably to investment cost.
The basic formula is: ROI = net gain/cost
Example: I spend $50 and make $75. My net gain is $25.
ROI = 25/50 = .5 or 50%
Business Case
The business case is a tool for advocating and ensuring that an investment is justified in terms of the strategic direction of the organization and the benefits it will deliver
ACC Legal Operations 2017

5. Developed internal resources to build functionality in TeamConnect
What to expect
TeamConnect implemented in January 2015 for matter management and e-billing
Developed internal resources to build functionality in TeamConnect
Able to build tools in TeamConnect to handle a variety of tasks including Operations Portal and Compliance Management
Items I learned through the experience
You have to sell the project internally
It is not easy to identify all the benefits software can bring
Presentation of an internal business case involves personal risk
ACC Legal Operations 2017

6. Where does building a business case fit in?
Plan
Research
Evaluate
Calculate ROT
Present
Create an overall legal technology roadmap based on benefit to the organization
Research the market for solutions
Industry publications, colleagues, procurement
RFP’s, demonstrations, references
Ask vendors for their tools or data for calculating ROT
Calculate the expected return over a time period (5 years)
Seek ways to validate return as much as possible
Find the best way to present your findings
Adjust your calculation based on feedback
ACC Legal Operations 2017

7. Legal technology – sources of value
Increased Efficiency
Staff Time savings
Speed to process
Inputs to collect:
Time spent on tasks currently
Average salaries, days worked
Volumes of work (matters, contracts)
Expense Reduction
Legal Spend savings
Improved sourcing
Reduce infrastructure costs
Inputs to collect:
Legal spend
Number of law firms
Current legal IT costs
Risk Mitigation
- Protection of revenue
- Improved legal outcomes
Inputs to collect
- Average cost of adverse events (settlements, claims, fines)
- Associated revenue
ACC Legal Operations 2017

8. Expense Reduction – Legal Spend Savings
E-billing
Expense Reduction – Legal Spend Savings
Enforces billing guidelines and negotiations
Improves accuracy of invoices due to greater scrutiny by law firms
Eliminates overpayments and duplicate payments
Streamlines collaboration with outside counsel to reduce costs
Allows legal department to take advantage of early pay discounts
Increased Efficiency
Reduces time spent processing invoices and responding to law firm inquiries
Saves attorneys time approving invoices
ACC Legal Operations 2017

9. Calculating the benefit – Legal spend
Legal Spend with Outside Counsel - $10M
Enforces billing guidelines
Improves accuracy of invoices
Eliminates duplicate payments
Streamlines collaboration with OC
Early pay discounts
3.0%
0.5%
1.0%
$300,000
$ 50,000
$100,000
$50,000
5.5%
$550,000 annual savings “
We’ve saved $1.5 million since go live 2 years ago due to the ability to enforce compliance with the terms of engagement.
(Director of Legal Administration, Fortune 500 Entertainment Corp) “
Our system won’t allow outside attorneys to bill at rates other than what’s in the system. This is a huge savings for us.
(Assistant VP of Legal Services, Fortune 1000 Commercial Insurer)
ACC Legal Operations 2017

10. Increased Efficiency Risk Mitigation Matter management
The effort to open new matters and budgets for legal administrator
Time to generate reports for business users
Reduce time to generate and store legal documents
Improve staff attorneys management of assigned matters
Streamline contract collaboration with non-legal groups
Improves end user productivity due to integration and navigation benefits
Risk Mitigation
Reduces fraudulent claims payouts
Improve legal outcomes
ACC Legal Operations 2017

11. Calculating the benefit – Efficiency gains
Creating a Matter
Generating a report
Attorney Research
Current time spent
Time using matter management
Time saved per matter/report/week
# matters/reports/attorneys
Total minutes saved
1 hour
15 mins
45 mins
2000
90,000 mins
2 hours
10 mins
110 mins
500
55,000 mins
120 mins/week
60 mins/week
20 attorneys
57,000 mins
Factor in Salary, Days Worked, Time:
Fully Weighted salary
Daily salary (236 working days)
Hourly salary (8 working hours)
Annual Value of Time Savings
$90,000
$381
$48
$71,500
$80,000
$339
$42
$63,500
$200,000
$845
$105
$99,750
$234,750 annual savings “
We had a person who spent a considerable amount of time updating spreadsheets to create reports and now it’s done in the click of a button.
(Director of Operations, Fortune 500 Health Products Corp)
ACC Legal Operations 2017

12. Additional e-Billing benefits with Matter management
Expense Reduction – Legal Spend Savings
Optimizing the mix of law firms used to reduce costs (sourcing)
Tendering
Increased Efficiency
Budget collaboration
Reduce the time spent switching and inputting data into disparate systems
Legal Spend with Outside Counsel - $10M
1% additional reduction through improved sourcing = $100K per year
ACC Legal Operations 2017

13. Calculating the benefit – Efficiency gains
Year 1
Year 2
Year 3
E-Billing – Legal spend savings
Matter Management – Staff Time Saved
E-Bill + MM – Additional Savings
Total Annual Benefit
Adoption Rate
Total Benefits
$550,000
$234,750
$100,000
$884,750
50%
$442,375
$550,000
$234,750
$100,000
$884,750
80%
$707,800
$550,000
$234,750
$100,000
$884,750
100%
$2,034,925 in benefits over 3 years
Annual software subscription
Project to implement software
Total Annual Cost
$100,000
$150,000
$250,000
$103,000
$103,100
$106,090 $
$459,090 total cost over 3 years
ROI = (Benefits/Cost) -1
3.4X ROI over 3 years
ACC Legal Operations 2017

14. Presenting ROT
ACC Legal Operations 2017

15. Extending legal technology @ Prudential
Worked with cross-functional compliance groups to build compliance specific functionality in TeamConnect
Inquiries and Exams Tracker - replaced old tracking system with TC to streamline process
Corporate Books & Records - integration with iManage allows for better tracking of corporate documents
Cost savings by not having to conduct RFP or pay to implement separate system
Replaced existing operations intake portal with 1 Stop Ops tab in TeamConnect
Streamline process by guiding users through wizards to collect all relevant information at intake
Ability to report on volume of requests (staffing implications)
No need to invest in new system – most users already familiar with TC
Compliance
Operations Nu
ACC Legal Operations 2017

16. Contact us: info@mitratech.com
Market-Leading
ELM and GRC Platforms
Top-Ranked by Industry Analysts
OUR MISSION
To help companies across
the globe break down
the barriers between
legal, compliance and operational risk
1,200 and Growing
World-Class Clients
96% Retention Rates
500,000+ Global Users
120% User Growth in the last 2 years
ACC Legal Operations 2017

17. Questions?
ACC Legal Operations 2017