1. Demonstrating the Value of the Legal Team:
Create a True Competitive Advantage for the Enterprise

2. Optimizing your Legal Your Law Department Mgmt
Demonstrating the Value of the Legal Team: Create a True Competitive Advantage for the Enterprise
As corporations continue their efforts to cut costs and improve profitability, traditional “cost-centers” like legal departments are now expected to re-examine their operations and come up with new ways to contribute value – providing strategic services, generating revenue and optimizing legal spend. Today, legal is tasked with controlling costs, balancing variable workloads against fixed budgets and reporting their performance to the board – just like every other department. 
How can legal be more proactive and effective, yet stay within its current budget. What are the most effective methods for budget, revenue and profit forecasting.
Which performance metrics are likely to be most compelling to clients?
This session will explore strategies for demonstrating value, including: insourcing, creating effective alternative fee agreements with vendors and outside counsel, maximizing headcount, integrating proven business principles into legal operations, establishing proactive patent enforcement strategies, and leveraging the right technologies to make litigation more efficient and cost-effective.

3. Panelists Joe Colaiano Director of Legal Operations Nancy A. Jessen
Sr. Vice President, Legal Business Solutions

4. Joseph Colaiano, Mayo Clinic
Joseph Colaiano, Director of Legal Operations
Company Overview
Law Department Overview
Revenue
Number of employees
Global footprint
Company growth
Number of lawyers
Number of total team
Geographic dispersion
Department growth
Operations team size

5. Demonstrating the Law Department’s Value
The General Counsel and legal team are expected to drive business outcomes and deliver measurable value to the company – all while balancing the complementary goals of efficient and effective operations.
Efficiency
Effectiveness
Cost
Management
High-Performing
Reactive
Strategically Engaged
Efficiency: how legal work is being performed in terms of process, technology utilization and resource optimization
Effectiveness: the degree to which the Department aligns with corporate goals and has established a clear strategy for delivering legal services

6. Translate into components Develop metrics that matter
But, … how to do it?
Define value drivers
Translate into components
Develop metrics that matter

7. 1. Define Value Drivers
Engineering creative solutions to manage risk, promote a culture of integrity, protect the company's ability to operate, and engage effectively with government/regulatory bodies
Facilitating growth, transformation, and the best possible outcomes for the company and its customers, through responsive and proactive legal and policy expertise, business acumen, judgment, and advocacy
Advancing Strategic Direction
Facilitating Risk Management and Protection
Increasing Speed of Business
Controlling Costs
Controlling costs via resource allocation, vendor management, cost transparency, operating processes and technology
Accelerating business through simplified contracts, legal services, processes and tools

8. 2. Translate into components
Advancing Strategic Direction
Facilitating growth, transformation, and the best possible outcomes for the company and its customers, through responsive and proactive legal and policy expertise, business acumen, judgment, and advocacy
Demonstrating Value Contribution
Active member of business leadership team contributing judgment and problem-solving prowess
Balanced approach to risk and reward when evaluating and pursuing new business opportunities 
Enabling business teams in growth markets and regions
Helping business leaders and teams avoid missteps and omissions
Advancing business priorities and shaping policy through government engagement and advocacy
Legal and business competencies and focus to support company strategy
Aggressive and disruptive IP strategy

9. 2. Translate into components
Controlling Costs
Controlling costs via resource allocation, vendor management, cost transparency, operating processes and technology
Demonstrating Value Contribution
Value for associated cost
Cost-effective internal staffing (skillsets appropriately aligned to tasks)
Effective management of internal costs
Appropriate use and engagement of outside counsel
Effective management of external costs (e.g., outside counsel)
Cost transparency (i.e., budgets, forecasts, op plan, internal and external spend components)

10. 3. Develop metrics that matter
Know what value drivers are most important to the business
Incorporate ‘voice of customer’ perspective through structured survey
Combination of qualitative and quantitative
Recognize data limitations and behavior obstacles
Don’t measure too much
Work with business and legal to develop initiatives to drive improvement in prioritized type of value
Track improvement from that initiative

11. Defining value for your business clients Initiatives underway
Panel Discussion
Defining value for your business clients
Initiatives underway
What worked/what didn’t
Client interest in metrics
Technology and data challenges
Change management with internal team
Next on your horizon

12. While legacy concerns such as vendor and cost management are becoming more manageable, solutions to issues related to process have been elusive
Percent of Respondents Reporting Task As More Challenging
More
Challenging
Nick’s Takeaways:
Over the last five years the major focus of law departments – based on my experience working as a consultant – has been on vendor management, cost management and implementation of new technology. The fact that these three “tasks” are listed as less challenging suggests to me suggests that a lot of the hard work that has been done over the past several years in those areas is starting to pay off. These “legacy” concerns are becoming more manageable and there is a turn from the external to the internal. Now you see departments having significantly more trouble with resource optimization, prioritizing work, and process efficiency. In my opinion these tasks will be the next hurdle for law departments.
Potential Audience participation:
ask how many were doing major projects focused on vendor management or cost management over past several years
Ask how many believe those efforts are starting to pay off
Ask how many are currently working on internal efficiency focused initiatives
Source: Business of Law Survey (2015)