§;Contingency/success fees – in the litigation context
§;Capped fees with savings sharing – for some matters, an overall fee cap may be set; however, if costs come in below
the capped amount, the law firm and law department may “share” in the savings
§;Retainers – flat fee arrangements that generally include monthly payments for access to subject matter expertise.
Have implemented this arrangement in a variety of contexts, including corporate and securities, environmental and
§;“Rates for gates” – different rates or arrangements for different segments of work (e.g., discovery phase may be a
capped fee structure, and trial may be on a fixed fee arrangement plus success bonus)
OTHER VALUE PRACTICES IMPLEMENTED BY THE LAW DEPARTMENT
§;Leverage company programs – The law department leverages good practices implemented elsewhere in the company.
Examples are managed print services and travel — the law department leverages enterprise-wide arrangements.
§;Increase in efficiency of internal operations – Eliminate low value work, and increase efficiencies to do work more
cheaply; scale work.
§;Training and development – The law department has developed two “Legal College” programs for personnel at
different levels: (1) one is for administrative personnel and paralegals; ( 2) the other is for attorneys. The Legal
Colleges” are specifically designed to help personnel better understand the company’s operations and how the law
department relates to those operations. Trainers are in-house staff and clients. Each “Legal College” is approximately
2. 5 days; the course is designed to be a primer and includes training on certain business and counseling skills, training
on how to build effective client partnerships, and on the purpose, values and principles of the company as well as key
legal areas. The law department also recently conducted a “Legal Renewal” effort—an exercise to look at what the
company needs legal to be in 2020.
§;Low cost vendors for document review – Rather than have outside law firms perform document review at law firm
rates, the law department uses (and asks its firms to use) lower cost legal service providers for document review
§;Preferred outside counsel program – The law department has a preferred outside counsel program that includes
collaborative training and education for law firm and in-house lawyers and discounted rates as well as value-based fee
§;Enhanced training from law firms – Law firms offer training for in-house counsel at no additional cost.
§;Insourced and centralized e-discovery – The company created a centralized department staffed by business personnel
and supervised by the litigation group; the core ediscovery team consists of around five people.
§;Shared extranets – In-house counsel and outside law firms work collaboratively using shared extranets for litigation
and transaction documents; extranets provide central document repository.
§;Secondments – Usually implemented for there to six months at a time, secondments include having law firm
personnel perform services on site with the law department.
§;E-billing practices – Implemented business rules in connection with billing arrangements and guidelines, thereby
enhancing efficiency and freeing up in-house counsel time.
ESTIMATED COST SAVINGS
We estimate several million dollars of hard savings. However, the value to the law department is significantly higher because
overall, the practices result in better partnering, better outcomes and more predictability.
MOST VALUABLE PRACTICES; PROVIDED GREATEST RESULTS
Our department’s focus on relationship-building and frank discussions on which fee structures provide the most value are among
the practices that provide the most value. Rather than dancing around the issue, having direct and open conversations that help
define common goals and improve alignment results in great value. Some firms are getting really good at this.