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Speakers
• Lisa Girmscheid
– Legal Project Manager, Law Department Manager, a “Generalist”
– More than 25 years experience in legal field
– 17 years managing law departments
• Julie Richer
– Legal Technology Program Manager, American Electric Power
– 12 years in IT and 4 years in the legal department with legal operations, ediscovery and litigation support experience
• Rebecca Thorkildsen
– Senior Director, HBR Consulting (formerly Hildebrandt Baker Robbins)
– More than 15 years consulting to the legal industry on topics including law department management, operations and technology
Session Assumptions
• There are a large number of matter
management best practices
• Believe the current audience to be relatively
sophisticated users of matter management
• We have focused on best practices for using
the MMS to support department objectives
• The MMS can do more than track costs – it
can demonstrate value
Polling Question
• What types of reports do you routinely run from
your matter management system?
– Financial (costs, budgets)
– Inventory (matter count, workload)
– Status
– Efficiency and Effectiveness (cycle times, outcomes)
– Trend
– Risk
– Value (recoveries, savings, value delivered)
Session Agenda
• MMS – the realm of possibilities
• Using the MMS to demonstrate more than
just costs
– Maximizing value of external spend
– Demonstrating value of internal services
Polling Question
• Have you extended reporting beyond the canned reports offered by your matter management vendor?
• Which of the following types of information do you collect about your matters?
– Matter budget
– Risk or significance rating
– Status
– Time spent working on matters (in house)
– Favorability
– Costs associated with case outcomes (judgments,
settlements, payments)
– Lessons learned
Best Practice Law Department
Technology Framework
Matter
management
functions
within the
broad context
of all
technology
supporting the
business of law
Best Practice Use of Matter
Management
Departments that evolve a wide variety of financial, operational and performance management reports maximize the return on investment of their system.
Matter Mgmt
E-Billing
Document Mgmt
Office Apps
Practice Tools
• Run Significant Matter Status Reports
• Identify new, high risk matters
• Analyze cost data
• Conduct trend analysis
• Measure cycle time, performance
• Monitor compliance with internal processes
• Customized and ad-hoc docketing and status reports
• Benchmark
Cost & OC Management
Purpose: Ensure that legal team is following cost containment policies
and monitor results of cost containment approaches
Risk & Performance
Purpose: Monitor high risk / complexity / cost matters and associated
performance
Workload & Effectiveness
Purpose: Identify spikes in number or complexity of matters for a particular
matter type and use to identify legal resource requirements
Value & Quality Service Purpose: Ascertain if outsourced legal work is delivered for comparable
cost and quality
Matters Outsourced Report From 01 December 2011 To 31 December 2011
Matter Type = Employment - HR; Matter Sub Type = Discrimination Suit
Average In-House Matter Cost For Last Year: $185,000
Matter #/Name Case Owner
Open / Close Dates
Total Matter
Cost
Amount Over In- House
Average Favorable? Vendor Reason Outsourced
HR – 2011-56 Jones, C Carol Miller
7/18/10 / 8/11/11 $210,000 $25,000 Y Firm 1 Needed Special Expertise
HR – 2011-65
Marshall, P Carol Miller 1/23/11 / 9/30/11 $300,000 $115,000 N Firm 2 Required by In House Client
HR – 2011-81
Murphy, L Ehab Shourky 1/25/11 / 3/15/11 $54,000 -$131,000 Y Firm 1 High Risk of Reputational Damage
HR – 2011-90
Allister, A Jim Heilander 3/2/11 / 11/2/11 $97,000 -$88,000 N Firm 3 Needed Special Expertise
COLOR KEY
Red Cost Exceeds Internal Average and Matter was Unfavorable
Yellow
Cost Exceeds Internal Average and Matter was Favorable Cost Below Internal Average and Matter was Unfavorable
Green Cost Below Internal Average and Matter was Favorable
Types of Data Points Required
Matter management fields required to support similar types of reports as part of an overall performance management and metric plan.
Session Agenda
• MMS – the realm of possibilities
• Using the MMS to demonstrate more than
just costs
– Maximizing value of external spend
– Demonstrating value of internal services
Polling Question
• Do you perform outside counsel evaluations
at close of a matter?
• Do you perform annual law firm reviews?
We get a bad rap
Common perception: we are a cost center, never a profit center
We have one client:
The Company
We know money doesn’t grow on trees
We use technology to help us manage costs:
Use e-billing to control outside counsel costs
Provide business managers with accurate budgets and forecasts
Use data from the past to make strategic decisions in the future
Benchmark regularly to determine the best inside:outside counsel ratio
We earn our keep
Pursue collections that are “tricky”
Constant purveyors of risk avoidance solutions
Find creative solutions to collect fees for services provided by the law
department to external parties
Demand value from our providers
• System audits
• Meet diversity and other company goals
• Handle matters appropriately and with fiscal responsibility
• Law firm reviews: measure and regularly audit value from
our firms
Law Firm Review
Examples of Reports
Partner
19%
Paralegal
13% Associate
68% L240
Motions 14%
L210
Pleadings 6%
L120
Analysis & Strategy
25%
L190 Other
Case Assess.
24%
L140
Doc/File Mgmt
31%
E124 Other
21%
E110 Out of
town travel
20%
E112 Court
fees
12%
E115 Depo
transcripts
18%
E111
Meals
14%
E114
Witness
Fees
4%
E106
Online
Research
11%
Session Agenda
• MMS – the realm of possibilities
• Using the MMS to demonstrate more than
just costs
– Maximizing value of external spend
– Demonstrating value of internal services
Polling Question
• Are you formally tracking or reporting on the
value or quality of inside legal services?
Finding measures to add value
may not be so easy to find
Internal Hours
• Legal
• HR
• IT
Shipping
Copying/Scanning
Limitations
Subpoenas
Where does the cost go for subpoena response at your
company?
Budgets How to improve forecasting
1.Who is entering
budget?
2.Benchmarks?
3.What is being
tracked?
4.What if budget
goes over?
5.Are budgets
checked upon
matter closure?
• Cycle Time
• Initial Demand
• Final
Settlement/Payment
• Total cost of matter
– Outside counsel and
vendors
– Internal time spent
• Vendor Evaluations
Closing Matters
• Make fields in your matter management
system required to ensure you will get your
data.
• Teach your legal department why it is
important to accurately fill out the fields. If it
is personal, they will support it more.
• Validate the information that is being
gathered early.
How To Get The Data
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