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

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

3. What Is A Virtual Law Firm?

4. 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.

5. Why Are Companies Forming VLFs?

6. Case Study: Toyota

7. Benefits & Challenges

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

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

10. Steps For Developing A VLF

11. Step One:
Do Your Homework

12. Step Two:
Establish Goals

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

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

15. 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 ( Interview and Survey Data from 166 CLOs of S&P 500 Companies)

16. Select Preferred Providers
Step 5:
Select Preferred Providers

17. Step 6:
Team Build

18. Step 8:
Create formal communication channels

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

20. Keys To Success

21. 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

22. This material is provided as a general informational service to clients and friends of Loeb & Loeb LLP, Alston & Bird LLP and Toyota North America. It does not constitute, and should not be construed as, legal advice on any specific matter, nor does it create an attorney-client relationship. You should not act or refrain from acting on the basis of this information. This material may be considered Attorney Advertising in some states. Any prior results discussed in the material do not guarantee similar outcomes. Links provided from outside sources are subject to expiration or change.
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