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Technology AdvantageWebinar Series:
Legal Spend Analytics
May 17, 2012
Host: Ron Lippitt
Ron is an expert in addressing issues affecting corporate performance, and helps ensure that Lumen Legal’s relationships result in successful outcomes. He works with Lumen clients around the globe to create solutions that improve efficiencies and lower costs. Ron brings more than 20 years of experience in consulting and assisting organizations in finding the right balance between people, process and technology —using Lumen’s thought leadership and array of strategic services.
Ron graduated from the University of Michigan in Ann Arbor with a B.S. in Psychology. Before joining Lumen, he was the global sales lead for a leading international staffing firm. He also excelled as the director of sales for a major marketing consulting organization.
Ron LippittVP of Global ServicesLumen Legal
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Topic Expert: David Galbenski
Lumen Legal’s success is one of many proud achievements in Dave Galbenski’s ongoing work as a legal industry innovator, thought leader, author, community volunteer and entrepreneur. Since staring Lumen Legal in 1993, Dave has pioneered outsourcing solutions for corporate clients and law firms.
In 2005, he was an Ernst & Young Entrepreneur of the Year Award Winner (Staffing and IT Consulting Services, Central Great Lakes Region) and he’s a two-time member of the Inc. 500 – honoring the 500 fastest-growing, privately-held companies in the United States. His book, Unbound: How Entrepreneurship is Dramatically Transforming Legal Services Today, has been well received.
David GalbenskiFounder & ChairmanLumen Legal
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Guest Speaker: Doug Ventola
Doug is a well-proven financial and business executive, with over 20 years experience. Most recently, Doug was Senior Vice President for NASDAQ OMX, launching their Corporate Services Division. Doug successfully acquired and integrated multiple businesses on behalf of NASDAQ OMX and led the development of new products and services.
Prior to joining NASDAQ OMX, Doug was CFO for Shareholder.com, a leading provider and innovator in shareholder communications, institutional intelligence and executive advisory services to over 2,000 publicly traded companies worldwide. He holds a B.S. in Business Administration from Boston University.
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Doug VentolaPresidentSky Analytics
Today’s Book Giveaway
Taming the Big Data Tidal Wave: Finding Opportunities in Huge Data Streams with Advanced AnalyticsBy Bill Franks (published April 24, 2012)
With its unique focus on the effective analysis of these increasingly popular data sources, Taming the Big Data Tidal Wave shows you step-by-step how to design, incorporate, and profit from a world-class advanced analytics ecosystem in today's big data environment. Author and analytics expert Bill Franks shares his "from the trenches" perspective to show you how big data is changing the world of analytics. He maps out an easy-to-follow action plan to help your organization uncover new business opportunities, implement new business processes, and make better-informed decisions.
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Polling Question #1
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Legal Spend Analytics
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Macro Economic Trends
The Timing is Right...
Legal departments are now being forced to adopt technology to drive efficiencies.
Legal spend not closely scrutinized.BEFORE AFTER
Legal spend highly scrutinized.
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Analytical skills concentrated in too few employees
IT needs to spend more time on the “I” and less on the “T”
Reliable information exists, but it’s hard to locate
Business executives don’t manage information as well as they manage talent, capital, and brand
Source: Harvard Business Review, April 2012
Macro Economic Trends
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Conclusions:
Critical to have the right tools to create and
interpret data displays
Half of all employees find that information from corporate sources is in an unusable format
The solution is to deploy improved information filtering and better visualization
Source: Harvard Business Review, April 2012
Macro Economic Trends
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Economic principles of Joseph Shumpter (creative destruction) now govern industry
Entrepreneurial thinking required to thrive (better, faster, cheaper)
Disruptive innovation occurs from outside traditional industry
Pricing model shift
Legal Industry Trends
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Computer processing power and internet dynamics (accessibility, the cloud, speed, etc.) now allow for processing a near infinite amount of data (“Big Data”) in real time.
Led to a next generation of possibilities for legal insights via industry wide benchmarking across firms, lawyers, matters and geography.
Strategic sourcing/procurement involvement increases
Trends Applied to the Legal Services Industry
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Polling Question #2
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Sky Analytics offers the next generation in legal benchmarking and analytics to help manage legal spend,
review of bills and cost controls.
Sky Analytics
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Send us your invoices– We accept any format (paper or
electronic)
We import your invoices into our benchmarking database.
You enjoy access to on-demand analytics.– Software as a service (SaaS)
– No installation required
– Accessible from any web-enabled device
How does Sky Analytics work?
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Increase visibility into their own legal spend– Many corporations employ hundreds of law firms so getting quick insights into
spending across all matters is difficult
Manage matters more effectively– Is this matter taking too long?
– What am I spending by task or activity?
Identify & reduce inefficiencies (and costs)– Are my matters being staffed by overly expensive resources?
– Am I paying for multiple resources to perform the same task?
Increase predictability in matter cost and duration– How much does this typically cost?
– How long does this typically take?
How do clients use the data?
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Make better purchasing decisions by including analysis and objective data
Promote better collaboration with firms via transparency
Embrace data-based innovation through efficiencies and actionable intelligence
How is the use of data transformingin-house counsel?
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Macro-level summarizes:
– YTD Spend
– Firms & Timekeepers Employed
– Number of Matters and Invoices
Matter type breakdown
Timekeeper rate trending
Cost control alerting
How can you get instant transparency?
Legal Spend Dashboard
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Summary of spend and matters by matter type.
Access all matters for which timekeeper is involved.
Benchmark timekeepers:
– Avg. Experience
– Extended Hours
– Blended Rate
– Avg. Matter Duration
– Avg. Cost per Matter
Keyword Explorer allows you to quickly identify most commonly used words and phrases by timekeeper in invoices.
What can you analyze by timekeeper?
Timekeeper Profile
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Summary of spend and matters by matter type
Access all timekeepers and matters associated with the firm
Benchmark firms:
– Avg. Experience
– Extended Hours
– Blended Rate
– Avg. Matter Duration
– Avg. Cost per Matter
Keyword Explorer allows you to quickly identify most commonly used words and phrases by all of the firms’ timekeepers in invoices
What can you analyze by firm?
Firm Profile
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What can you analyze by matter?
Full transparency into matter from summary view to detailed line item view
Instant access to timekeepers and invoices associated
Benchmark matters:
– Avg. Experience
– Extended Hours
– Blended Rate
– Avg. Weeks to Close Matter Type
Activity, Staffing and Task Analyses
Keyword Explorer allows you to quickly identify most commonly used words and phrases in matter invoices
Matter Profile
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Manage Rate Requests
– Make more informed decisions when faced with an annual rate increase for a timekeeper
– Benchmark rate requests against comparables and cost of living index
How can analytics help support operations?
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Sourcing Firms
– Compare firms side-by-side to make more informed sourcing decisions.
How can analytics help support operations?
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Heat Map Analysis
– Allows you to see a graphic representation of your spending and average blended rates.
Other Features That Delight Customers...
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Diversity Analysis -Percentage Breakdown and Firm Rankings by:– Gender Diversity
– Ethnicity Diversity
Other Features That Delight Customers...
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Invoice Lag Analysis
– Average invoice lag over time
– Top performing and bottom performing firms
Other Features That Delight Customers...
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Polling Question #3
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Today’s Book Giveaway
Taming the Big Data Tidal Wave: Finding Opportunities in Huge Data Streams with Advanced AnalyticsBy Bill Franks (published April 24, 2012)
With its unique focus on the effective analysis of these increasingly popular data sources, Taming the Big Data Tidal Wave shows you step by step how to design, incorporate, and profit from a world-class advanced analytics ecosystem in today's big data environment. Author and analytics expert Bill Franks shares his "from the trenches" perspective to show you how big data is changing the world of analytics. He maps out an easy-to-follow action plan to help your organization uncover new business opportunities, implement new business processes, and make better-informed decisions.
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Next Webinar: June 13
2012 Corporate Counsel Webinar Series
Topic: Managing Legal Spend
Date/Time: June 13, 11:00 a.m. – 12:00 p.m. EDT
Guest Speaker: Debra Kuper, VP, General Counsel & Secretary, AGCO
Duration: 60 minutes
Cost: Free!
There is no uniform solution for managing your legal spend. Your solution hinges on a number of elements such as the magnitude of external spend, the way work is allocated and the geographical spread of work. Join David Galbenski, Founder & Chairman of Lumen Legal, as he interviews Debra Kuper, about how she manages the legal spend of AGCO Corporation, a $9 billion publicly traded global agricultural equipment manufacturer.
She manages a legal staff of 37 in-house lawyers and staff located in Argentina, Brazil, China, France, Germany, Russia, Switzerland, the United Kingdom and the U.S.
This is part of a webinar series presented by Lumen Legal and Eversheds Consulting to help Corporate Counsel meet the challenges of a changing legal marketplace.
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Questions from the audience?
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Contacts
Doug Ventola
President, Sky Analytics
617.830.2124 x801
Ron Lippitt
Vice President Global Services, Lumen Legal
248-597-0400
www.lumenlegal.com 31
