Caterpillar worked effectively with two law firms and an LPO to deploy an
intensive strategic sourcing/staffing program, dubbed ‘legal lanes,’ and not
only saved lots of money but also increased employee satisfaction because
the attorneys got to shift attention to more strategically important work.
Impressive results, including improved turn-around times, reduced costs
and elimination of backlog. Caterpillar uses ‘lane strategies’ to fit the size,
complexity, risk and needs of each matter with the resources required to
ensure its successful completion.
documents quickly and efficiently. Two people
“taught” the software and helped it to refine results.
This effort alone resulted in more than $250,000 in
savings and made strategically important documents
available much more quickly.
E-discovery expert Gil Keteltas of BakerHostetler
says, “Although many corporate clients seek to
control spending on outside counsel, the most costly
part of litigation is discovery. It’s decentralized and
re-invented in every case. Caterpillar has truly taken
control by pushing out expectations and being open
to modern, cutting-edge ideas about managing
massive document sets.”
Since the initial phase of the project, lane strategies
and LPOs have been deployed to manage the
traditional review of contract documents and of
regulatory and compliance reports. The company
partnered with LPO Pangea3 to create tracking and
reporting databases for anti-corruption reports and
data that have reduced the average cost per review by
more than 85 percent. Despite the automation, at
least two pairs of eyes still hit every work product.
“There were some worries within the legal department
about how the work would be done, and initially
there was quite a bit of resistance. But we just kept
reassuring people that their jobs would still be here
and would be much better,” Buck says. There was
some discomfort on the part of internal
clients as well, he says, but “they quickly
found that they had better information,
more understanding, and that things
were handled more consistently, more
completely and with greater velocity.”
“Our approach was that of a world-class
manufacturer, in terms of how we do things and
striving to constantly improve,” says Sposato. “But
this approach would work in many environments.
How you work is as important as what your work
produces. For us, change management and project
management were key, as well as buy-in and
commitment from the company’s senior leadership.” n