HIROC, the Health Insurance Reciprocal of Canada, brought in
Catalyst Consulting to analyze years of matters in order to understand
their complexity and resulting staffing needs. HIROC then used the
information to create a robust multi-year agreement with Borden
Ladner Gervais that focuses on matters rather than hours, and permits
great budget predictability.
Analytics also help legal departments understand and manage
another concept borrowed from manufacturing: cycle time. Working
with Seyfarth Shaw, Nike was able to reduce the average time for
processing procurement contracts from two weeks to 2. 6 days, an 83
percent increase in efficiency. ACEA S.p.A. mandates responses to
requests for legal services by the next business day.
Many of this year’s Champions are leveraging technology for efficiency
and data analysis. NetApp’s Instant Nondisclosure Agreement, which
facilitates an electronic signature process, has decreased cycle time on
NDAs from weeks to just minutes. ACEA S.p.A. and China State
Construction used technology to share information and knowledge
with clients in the business units, leading to better legal outcomes and
enhanced internal reputation for the legal department. Both also deployed
value-based fee arrangements linked to outcomes — quite the motivator
for their external legal counsel.
“What struck me was the diversity of approaches to legal department
management, from the narrowly targeted to the broad-based,” says Findlay.
Marsh & McLennan Companies are using all of these techniques
and more: technology, data analysis, metrics, convergence, strict outside
counsel management and value-based fees with strong top-down
leadership. “MMC has attacked the issues on a broad range of fronts,” says
Findlay. “The sheer variety of their simultaneous initiatives has resulted in a
more client-focused legal department.”
Bank of America, Office Depot and United Technologies
Corporation were cited by the evaluators as having strong outside
counsel management across the board. Bank of America’s Litigation
Roundtable promotes collaboration and learning across 30 law firms
while returning cost savings to BoA. Office Depot took a targeted
approach to developing requests for proposals that have delivered a 30
percent reduction in spend.
Office Depot also has recognized the economies of scale that can
happen with joint defense groups. The company has partnered with other