1. Metrics that Matter
April 16, 2014

2. Today Open up some new thinking about metrics
Share examples of “Metrics that Matter (MTM) in Action” from innovative in-house counsel
Get you to do some ‘on your feet’ thinking with your colleagues

3. Our Panelists
Douglas A. Batt │ Senior Vice President, General Counsel and Secretary of PAREXEL International
Scott A. Brown │ Vice President and General Counsel of Novartis Institutes of Biomedical Research
Stephanie Shores Lambert │ Managing Counsel of Staples Inc.
Jeff Levinson │ Vice President, General Counsel, and Secretary of NetScout Systems, Inc.
Kate Perrelli │ Partner and National Litigation Chair of Seyfarth Shaw, LLP

4. What You’ll Learn from Our Panel
What makes a metric a “Metric that Matters”
What MTM’s you can use to best manage costs, improve quality of non-financial results
How to get data you need from inside and outside your organization
How MTM can help you engage/ lead teams
How you can use metrics that matter to strengthen your department’s position as a strategic business partner

5. Metrics that Matter at Staples, Inc.
Stephanie Shores Lambert Managing Counsel

6. Public company founded in 1986
$23B sales annually in B2B and B2C
Products:  Core office supplies 27%; ink and toner 20%; Business Tech 15%; Paper 9%; Facilities and Breakroom 9%; Computers and Mobility 7%; Services 7%; Office Furniture 6%
25 countries
1500 stores in US/2100 worldwide
Global Legal Department (includes Ethics & Compliance)
28 lawyers globally (1 lawyer/$800M Revenue)

11. Metrics that Matter at NetScout Systems, Inc.
Jeff Levinson
Vice President, General Counsel and Secretary

12. NetScout Systems, Inc. (Nasdaq: NTCT)
Market leader in application and network performance management solutions
Core, patented technologies enabling the most powerful information capture and efficient workflows for service assurance
Fortune 1000 customer base operating complex “mission-critical” network environments
International footprint with sales, support, and services in over 30 countries
Strong financials
~ $400M revenue; ~$1.50 EPS; no debt
9 years of revenue growth & expanding margins
~ 1000 employees
Over 30 years of leadership within the industry

13. Quantitative vs. Qualitative
Consider trends, deltas
Operations review/quarterly business review
Selected examples
NDA indicators
Subsidiary/entity spend and savings, international restructuring
Patent tracking, prosecution and filing costs, pruning
Compliance certifications, training delivered, new policies developed
ERM charts
Litigation tracking

14. Key Contracts Measurements
Numbers of MPAs, reseller agreements
Quarterly revenue related to transactions legal worked on
Key deals and new logos
Qualitative view of trends observed

15. Metrics that matter: contract negotiations
April 16, 2014
Douglas A. Batt
Senior Vice President, General Counsel and Secretary

16. Parexel international (NASDAQ: PRXL)
Leading global bio-pharmaceutical services company; 16,000 employees doing business in 100 countries; offices in countries
Service Lines: Clinical Research Services, Regulatory Consulting (e.g., FDA) & Product Commercialization, PAREXEL Informatics and Clinical Logistics
PAREXEL has supported the development of 95% of the top 200 bio-pharmaceutical products on the market
Clients include: All of the top 50 bio- pharmaceutical companies as well as all of the top 30 small and emerging bio- pharmaceutical companies

17. metrics Quantitative evidence of: Demonstrating value
Efficiency
Effectiveness
Risk
Opportunity
Demonstrating value
Selective use of metrics
Metrics vs. Reporting
Example: Measuring Contract Negotiations

18. Client/PRXL Target Date
measuring The Cadence Of Contract Negotiations
ALERT
ALERT __
PAREXEL CLIENT
START
SIGNATURE
ALERT
ALERT
ALERT
Client/PRXL Target Date
DAYS
TOTAL TIME

19. Contract negotiation activity report
ACTIVITY REPORT
Last Updated:
4/16/2014
Human Voice
Template Sent?
Template Used?
XX%
NEW BUSINESS: CLIENT CONTRACTS
NEW BUSINESS DEAL TEAM
CLIENT
ESTIMATED VALUE
SBU / FUNCTIONAL AREA
DOC TYPE
PROJECT NUMBER
REGION
BUS DEV
OPS
BUS OPS
LRM
DATE IN
HUMAN VOICE
CLIENT IN ROLODEX
PRXL TEMPLATE
PRXL TEMPLATE SENT?
GOODWILL STATUS?
LOCATION
CURRENT STATUS
DATE COMPLETED
TOTAL DAYS NEGOT.
41746

20. Analysis of CONTRACT NEGOTIATION DATA
*This is hypothetical sample data only

21. Metrics That Matter: Talent Development
Scott A. Brown
VP, General Counsel
Novartis Institutes for BioMedical Research

22. Metric Stakeholders Care About
outcomes
value
results

23. Drivers of Outcomes
quality of counsel
value
results

24. counsel is as important
Drivers of Outcomes
quality of in-house
counsel is as important
demonstrating development
of legal talent is important
to stakeholders

25. A Metric That Really Matters
We need to enhance our ability to measure the potential of our people

26. Business Benefits of Getting It Right…
If we calibrate appropriately and differentiate between people who have different levels of potential we will:
Put the right development in place
Increase our confidence in people decisions
Increase the confidence of people of succeeding in those roles
Avoid the hero to zero situations
Invest our development resources in the most optimal way
Set and manage people’s expectations in a realistic way
Strengthen the foundation of our function: our people
Meet objective of positively affecting outcomes

27. Four (Five) Factors

28. Sustained Performance: Definition
Successful delivery in multiple roles
Over a sustained period
Measured by high performance against business goals and overall job execution
Periods of less successful delivery may be explained by environmental factors
Sustained Performance is different from annual performance
The annual performance rating is only one of the factors to consider
Sustained Performance is the ability to consistently deliver results over time.
The focus is on performance over the past 3−5 years, taking into consideration the context, the challenges and changes

29. Assessing Learning Agility
Gap in one or more factors of Learning Agility
Well balanced, moderate amount of agility in all 4 factors
Moderate agility in each factor and role model in two or more factors
Learning Agility is the ability to figure out something new and perform under first time conditions.
Four factors:
Results Agility
Mental Agility
Change Agility
People Agility
More 4 7 9 2 5 8 1 3 6
PERFORMANCE
SUSTAINED
Less
More
LEARNING AGILITY

30. Assessing Sustained Performance
Sustained Performance is the ability to consistently deliver results over the last 3-5 years, taking the environmental context into account
More 4 7 9 2 5 8 1 3 6
Consistently exceeds expectations
Always meets and sometimes exceeds expectations
Gaps in performance over the last years
PERFORMANCE
SUSTAINED
Sustained Performance is the ability to consistently deliver results over time. The focus is on performance over the past 3−5 years, taking into consideration the context, the challenges and changes
Periods of less successful delivery: take environmental context into account
Less
More
LEARNING AGILITY

31. Differentiated Development Planning
More 4
Deepen and leverage expertise 7
Reinforce expanding interests 9
Fast track,
high risk assignments 2
Build functional specialty 5
Build future utility 8
Increase challenging assignments 1
Performance
improvement
plan 3
Careful next assignment 6
Developmental jobs
PERFORMANCE
SUSTAINED
Less
More
LEARNING AGILITY

32. Differentiated Coaching
More
Coaching for depth 4 7 9 2 8 1 3 6
Coaching for breadth
PERFORMANCE
SUSTAINED
Coaching for high performance
Coaching for performance development
Less
More
LEARNING AGILITY

33. Use With Stakeholders How we use the metric with stakeholders:
Reported to divisional and global management
Hard wired into associate profiles
Used by management for appointment to new roles
Including outside Legal
Used by management for corporate learning assignments
Used by management for appointment of project and initiative tems
Used by Legal leadership to make matter assignments

34. Metrics that Matter at Rockwell Collins’ Law Group
Kate Perrelli
Partner and National Litigation Chair

35. Who is Rockwell Collins?
A Global Aerospace and Defense Company operating in more than 60 locations in 27 countries
$4.8 billion in sales (2012)
Operating margins about 20%
R&D investments ~ $900 million (18% of sales)
20,000 Employees
Office of General Counsel - 65 Employees
Law and Corporate Secretary (21)
Ethics and Business Compliance (12)
Export and Import Compliance (32)

36. Rockwell Collins’ Law Group
Re-engineered its processes for engaging outside counsel and achieving great results
Implemented a more consistent, cost-effective level of service through increased use of alternative fee arrangements (AFAs)

37. A Great Success Achieving excellent results while controlling costs
New processes and templates – Efficient and promotes use of AFAs
Savings of $598,000 over past 10 months
Strengthened relationships with our outside counsel

38. Metrics that Matter
Created a scorecard measuring outside counsel’s performance (in FY11, generated 46 scorecards)

39. Metrics that Matter Metrics Related to the Law Group Project
Total dollars saved using AFAs: $598,000 saved on $3.4 million– 17.4%
Percentage of total spend using AFAs: 49%; 58% including discounted hourly rates
Number of new matters using AFAs vs. standard hourly rates (by quarter)
By attorney, number of matters using different types of fee arrangements
Success Fee Matters by Subject Matter
Fixed/Flat Fee Matters by Subject Matter
Capped Fee Matters by Subject Matter

40. Metrics that Matter Legal Department Metrics
= Missed
= Met
= At Risk
(Forecast Only)
KEY:
Office Of The General Counsel FY13 Scorecard

41. Table Exercise
Identify 3 “metrics that matter” that you will use to demonstrate progress and/or challenges
In the spirit of transparency, these 3 metrics that you will share with the board must also be shared with your internal clients, law team, law firms
Factor in how you will collect data
Report out from facilitators

42. Questions?

43. Thank you!