8 D. Knowledge and data management
We define knowledge management in the glossary as: strategies and processes designed
to identify, capture, structure, leverage and share an organization’s intellectual assets (information,
documents, experience, precedents, etc.), with the goal of higher performance, productivity and
The globalization of business and the increased complexity of corporate products, services
and business structures raise the importance of effective knowledge management. Corporate law
departments operating across many borders must share information and knowledge effectively, since
it is simply too expensive and slow to reinvent the wheel every time.
Knowledge management also involves mining data gathered for other purposes
(e.g., compliance reporting or accounting) to make wise business decisions, and to spot potential legal
and compliance risks.
The following case example has the attributes of a value-based fee arrangement and also the benefit of
enhanced knowledge management.
8 E. CASE EXAMPLE
Service and knowledge management to reduce costs and improve client satisfaction
Peter Strivens and Christina Demetriades, Partners, Baker & McKenzie
Timeframe: since January 2012
After analyzing historic legal spend for commercial services across this FTSE 250 company’s operating
countries, the general counsel determined a target fixed fee, ensuring, as a minimum, that costs
remained flat year on year whilst improving quality, accessibility and availability of external legal
The in-house team felt it was not the most efficient or high-quality approach to have multiple
unconnected firms delivering advice across 13 jurisdictions. The legal function wanted to have single
points of contact and remove the process of per-matter-spend approvals, so that legal advice would be
more accessible and the function could respond more quickly to internal business clients.
1. Strengthen Colt’s legal capabilities by creating a pan-European “virtual legal team” (across 13
jurisdictions) to complement the Colt’s internal team under a single coherent model of law firm
2. Improve efficiency and consistency in our legal services delivery.
3. Have a clear legal budget for this area of work, not subject to retroactive change.