§;Fixed fees are established for each firm at the beginning of each year – They cover a wide range of matters (including
litigation, IP, research and development, compliance, tax, business counseling, transactions and more); each firm
receives 1/12 of its annual fee each month. The PLA model fosters partnerships, collaboration and efficiencies.
§;Firms have an opportunity to be rewarded with end-of-year bonuses – For critical successes and demonstration of
Alliance values and principles.
OTHER VALUE PRACTICES IMPLEMENTED BY THE LAW DEPARTMENT
§;Within the Pfizer Legal Alliance (PLA), we have implemented processes and tools to improve the management of
individual matters and the full portfolio, with a strong focus on setting expectations at the outset when new legal
matters are initiated.
§;In-house lawyers identify goals and objectives for engagement before contacting outside counsel – We ask
in-house lawyers to clearly identify their goals and objectives for the engagement — such as staffing and
effort level — before contacting outside counsel and then to agree upon these objectives with outside counsel
before the engagement is commenced. We believe this approach helps our law firms to improve efficiency
and drive toward high-value lawyering.
§;Pfizer Alliance Leaders – Each PLA firm has an in-house Pfiizer leader on point for managing the day-to-day relationship with that firm. PALs work closely with firm relationship partners, including on overseeing
firm portfolios, troubleshooting, soliciting feedback and facilitating secondments (more on this below).
§;Pfizer Legal Alliance Steering Committee – The committee sets long-term strategy for the PLA program and
annual fees for the firms.
§;PLA Website – PLA firms have access to a website dedicated to communications and information for
§;Collaborative Workshops – Workshops are among lawyers within the Pfizer Legal Division and PLA firms.
§;Secondments – We also offer secondment opportunities for PLA firm lawyers to come in-house and work
for up to one year with a Pfizer practice group. This helps ensure continuity of critical matters and gives
development opportunities to firm lawyers.
§;Centralized legal ediscovery services – Our legal ediscovery services are centralized within a single external law firm/
§;Other outsourcing options – We are considering other outsourcing options for routine contracting processes,
document management and discovery.
ESTIMATED COST SAVINGS
A very rough estimate of the aggregate overall cost savings to the legal division is 15 percent of the total annual division budget.
MOST VALUABLE PRACTICES; PROVIDED GREATEST RESULTS
The use of fixed annual fees set in the beginning of the year helps enormously in our ability to forecast and control our budget for
the year. This approach enhances the ability of our lawyers to focus on value and priorities throughout the year, as they discuss the
core tasks to be performed with their counsel rather than hours billed.