Category: Enterprise Legal Management

The process of formal performance reviews is not always the most eagerly anticipated part of the work year for most managers and employees. So why should outside counsel or general counsel and their in-house legal department look upon it more positively?

The answer is that, as with a successful performance review system at any progressive company, the process can help nurture and sustain a good, productive working relationship, which in the end, is what both parties desire. It gives general counsel a chance to discuss and confirm expectations; it can reveal possibilities for improving the efficiency or effectiveness of processes through reviewing reports and procedures; and it provides an opportunity for GCs to praise outstanding performance and bring up any areas for improvement.

Some law firms these days are proactively asking to be evaluated, believing that constructive criticism can be beneficial in the long run, and displaying a positive attitude about the process can only help their relationship.

One of the keys to a proper outside counsel review is to make law firms aware of client objectives/expectations and milestones and the metrics used.

OUTSIDE COUNSEL MANAGEMENT PERFORMANCE AREAS

Some suggested areas of performance for review include:

• Quality of work — How does it compare with work performed with similar matters, in similar situations, or by this firm in the past?
• Expertise — Did outside counsel exhibit proper knowledge in such important areas as procedural law and substantive law, opposing counsel, judges, etc.?
• Timing in delivery of work against expectations
• Adhering to the budget and staffing plan — and if there were adjustments, were they discussed with plenty of advance notice?
• Communication with in-house management, including responsiveness and availability
• Outside counsel collaboration, as appropriate
• Results

Some of these performance areas should be monitored during outside counsel engagement as progress unfolds, at regular intervals, or in real-time. This is often when feedback and conversation can make a real difference — and this is where versatile tracking, e-billing, and legal spend and matter management software can provide valuable capabilities for compiling data, issuing reports, and analyzing performance.

The in-house team should also remember that outside counsel management is a two-way street, and the best performance reviews will also consider their performance. For example:

How did the general counsel/legal operations team do in managing processes? How did they partner and collaborate to help deliver value? What part of their performance can be better next time?

As much as they may not want to admit it, some general counsel find themselves thinking that, at times, monitoring and controlling outside counsel activity begins to resemble the proverbial task of herding cats. Fortunately, tracking and e-billing software today can help define, monitor, and control outside counsel spending to gather and guide these cats within the established parameters, with instant notification if one strays outside the lines.

Onit’s European legal spend management solution BusyLamp eBilling.Space offers a Legal Fee Tracker that allows you to establish budgets, staffing limits, and other expectations and then measure the billable activity against those pre-defined totals and milestones along the way. Having access to pre-billing time entries makes it easy to stay on top of how legal spend is progressing on each separate legal matter, recognize potential issues developing, and make corrections before they get worse. Moreover, the updates come in without either party having to chase after the other.

BusyLamp’s Legal e-Billing accelerates the process of receipt and review of billing through automation, efficiently mapping it against your customized guidelines, including fee arrangements, negotiated discounts, spending caps, timekeeper rates, etc. It can capture the detailed billing information submitted by each firm, seamlessly translate manual or LEDES formats into a single form, and then route it to any designated approver. By automatically noting any violations, the software dramatically reduces the chance of error while increasing the review speed, substantially decreasing the support staff time needed to go over invoices.

MATTER MANAGEMENT AND CONTROL

Non-compliance with guidelines isn’t necessarily a deliberate act by outside counsel. Many firms deal with so many clients and differing contracts that it is understandably difficult to completely comply with each guideline. It’s not unusual for law firms to comply with widely varying terms regarding staffing (allocations for different experience levels, diversity requirements, etc.), expenses (including travel and other allowable or unallowed items), and time limitations. Billing software leverages technology to signal when actions are out of compliance, providing a straightforward, non-confrontational method of resolving the matter.

In addition to helping to manage matters and keeping operations running smoothly, the enhanced transparency and detailed information gathering, and analytics also help to set the stage for open and honest communication and collaboration between general and outside counsel. The additional insight provided through analytics can also deliver deep insights into the nature of your legal expenditures, providing a foundation for evaluating options for using outside counsel going forward and such considerations as internal cost allocation.

Compliance and cost-containment are necessary concerns for general counsel. But with a well-considered process in place, supported by versatile software capabilities such as those available from BusyLamp, maintaining a compliant working relationship can become less stressful, more productive, and in the best case, just the expected course of business.

Request a demo of eBilling.Space today and see our RFP functionality for yourself.

Cutting costs is a never-ending quest and topic of discussion for legal departments. Like accounting, HR, or marketing, Legal is viewed as a cost center and often at the head of the line during cutbacks.

Of course, what makes the quest to bring down costs difficult is striving to do so without sacrificing quality and productivity. While there aren’t any magic tricks to make it happen, some tools and strategies are available to support the effort and help evaluate costs at the end of each period and at budgeting time. After all, the flip side of the cost-saving effort is demonstrating that spending has been carefully considered, determined to be necessary, and thoughtfully allocated and monitored.

1. USING LEGAL TECHNOLOGY TO STAY IN CONTROL OF OUTSIDE COUNSEL SPEND

One of the most effective techniques for controlling spend is establishing and adhering to a monthly budget and individual project budgets. Legal Spend Management software can make this task easier and more beneficial by allowing for input of more detailed information and more complex analysis of data without an unreasonable amount of time and resources needed for processing.

Such software can also support cost monitoring (and savings) by automatically flagging any out-of-policy billing that might pop up. Whether it’s an ignored cap on hours or total spend being busted, inappropriate staffing (why is a partner doing work an associate could do?), or charges for services and expenses that are not approved or reimbursable, a modern system can ensure that improper amounts don’t slip through. This is particularly important for fixed fee arrangements; you need to be able to ensure that you are still getting the proper staff attention on your matters and that not everything is going through junior associates and hidden in a fixed fee.

It also provides a good framework for setting expectations for the next project or period, whether in discussions with the same outside counsel or a potential new provider. A thorough report can point to cost savings, spending trends, and budget-to-actual comparisons during discussions between a general counsel and a CEO or CFO. This frank openness leads to stronger, more strategic relationships inside and outside the business.

2. DETERMINE WHO IS BEST QUALIFIED FOR THE JOB

Certainly, one of the most significant factors in cost control for a legal department is work allocation. Who is the best person, team, or firm for the job? It’s always a matter of assessing the matter and making the cost/benefit decision.

Whatever it takes: For some cases, there’s no alternative to top-dollar outside counsel with the experience and expertise to provide the best support possible in a critical matter. You need them on board, whether it’s the broad range of talent or the niche specialists they can provide. The key, then, is to provide clear parameters upfront regarding scope and expectations — and delegate support tasks as much as possible, to lower the cost-alternative resources.

Second tier: Some cases don’t justify the costs that come with the largest law firms. It’s not a “must-win” for the organization or a relatively straightforward matter with settlement in sight. There’s a reason that smaller firms exist, and it’s essential to utilize them wisely.

In-house option: Insourcing, when possible, is an obvious way to reduce outside counsel spend if the proper resources are available. Unbundling to leverage technology and in-house personnel is commonplace and the intelligent way to do business today, even if it wasn’t the case historically.

Expanding in-house capabilities: There may come a point where the volume and consistency of work requirements indicate that hiring additional resources will be the most cost-effective action. Make this decision when clear data, such as through Onit’s European legal spend management solution Busylamp eBilling.Space legal dashboards, demonstrates a need for particular in-house options in the future.

3. CONTINUOUSLY MONITOR AND MANAGE QUALITY

If you have instructed new law firms or implemented different billing rules for your existing panel, you want to be sure the quality of work and advice you receive stays consistent with the norm.

Modern Legal Spend Management solutions provide surveys or other similar functionality, providing reliable metrics that provide insights to your in-house team for review. This allows them to score and evaluate firms and make data-driven, informed decisions that ensure you get the most value for your money — and secure your return on investment.

Additionally, Legal Spend Management solutions allow you to track the outcome of cases and how compliant a firm was with your billing guidelines. This is a key advantage for budgeting, reporting, and spending. Having proven, verifiable data about law firm performance allows you to make an internal case for spending more on expert counsel when only the best will do. The key is not to reduce costs for the sake of it but to control costs and get the best value for money.

Request a demo of eBilling.space today. 

With an eye toward budget predictability and managing risk, more and more legal departments are looking for opportunities to implement alternative fee arrangements (AFAs) with outside counsel as an element of legal spend management.

While there was a time when any arrangement outside straight billable hours was uncommon, even unheard of, a greater number of outside counsel firms are now open to AFAs. The issue, therefore, has become one of structuring the best fee arrangement for the situation: one that both parties will agree to align to the goals and financial requirements of each and is based upon accurate historical data that gives the legal department confidence that the arrangement is intelligent and appropriate.

INITIAL CONSIDERATIONS

There are numerous types of alternative fee arrangements utilized these days. Still, before deciding which might be most suitable given the circumstances, it is wise to consider the engagement in terms of actual value to the organization and the desired outcome. Is it a “win at all costs” matter or something much less critical in the big picture? Is compromise an option? Is any future relationship with the opposing party involved a non-issue, or does it involve an entity with whom you will need to continue to conduct business for many years to come? Both internal and outside counsel need to understand the situation clearly.

These factors can immediately help decide which is the best outside counsel firm to perform the work if there has been any doubt. It can also lead to the legal department and outside attorneys then analyzing the situation upfront to seriously consider the best approach to achieve the desired goals cost-effectively, beyond simply the appropriate staffing level.

ESTABLISHING THE ALTERNATIVE FEE ARRANGEMENTS

Trying to get work done for less money is not necessarily the sole — or even primary — reason behind opting for AFAs. The legal department may be looking for predictability and to simply keep costs from being open-ended, or there may be interest in allocating costs in a particular fashion, or to giving outside counsel reason to assume greater ownership regarding costs, or to divide the risk so that outside counsel assumes at least some of it. These considerations can drive the decision regarding which type of arrangement is preferable.

In any case, having relevant data to base the pricing on is critical. In the best case, legal spend management technology can provide budgeting, performance, and billing information compiled from previous engagements involving the same outside counsel and/or similar projects involving other firms. There is no reason to go with a “gut feeling” when concrete data is available to guide you with specific measurements.

With that information providing insight, there is a much greater likelihood of arriving at a “win-win” fee structure — where both parties are agreeable and excited about the arrangement and will not second-guess the project as work progresses.

Many types of alternative fee arrangements can be successfully deployed between inside and outside counsel: fixed fees for the entire engagement; phased fees, with a fixed fee for each segment of a project; value-based fees, where an hourly fee gets augmented by a sum to base upon the favorable or unfavorable outcome of the matter; contingent fees, in which outside counsel gets paid only if its work leads to a financial recovery (in which case it would receive a percentage of that total amount); or a blended hourly rate (for all timekeepers or by category).

But the key is ensuring that you are entering the discussion from a well-informed position. Variables and unforeseen circumstances can arise during an engagement, but having historical data from spend management tools to point to when structuring a new alternative fee arrangement can make both parties feel better about it from the outset.

Request a demo of BusyLamp eBilling.space.

Ask any general counsel what keeps them up at night regarding outside counsel management, what frustrates them, or what makes them want to fire a firm. You’re likely to get some variation on this: unmet expectations.

General counsels are working in a fast-paced world of change, with increasing regulatory complexity and compliance challenges, focus on risk management, and ever-present cost constraints. They want efficient, dependable service from their outside attorneys – and they don’t always feel like they are getting that.

HERE ARE A FEW OF THE SERVICE AREAS AND CHARACTERISTICS THEY VIEW AS MOST IMPORTANT FOR OUTSIDE COUNSEL TO DEMONSTRATE:

• Be responsive. Being attentive and available at a moment’s notice — or at least within several hours — and excited about the opportunity to serve shouldn’t fade away after the contract is signed.
• Respect the budget. The budget is there for a reason. Discuss anticipated departures from the agreed-upon plan as soon as feasible. In billing, accuracy, transparency, and compliance with guidelines are expected and critical to working relationships. Inevitably, there are times when the scope increases and the staffing for outside counsel must expand to accommodate the new requirements. But that shouldn’t mean that there will be an unpleasant surprise waiting to be sprung months down the road: Timely communication can allow for a discussion of developments and restructuring expectations regarding staffing and billing.
• Understanding the business. General counsel expects outside attorneys working for them will know the industry, its complexities, culture, and current trends.
• Utilizing technology. Outside counsel should be comfortable using basic technology and proficient at leveraging the latest developments to provide the most efficient, effective service they can per billable hour.
• Be fair, ethical, and responsible. Staff the work appropriately and don’t try to milk a project for more than it is worth.
• Make it a good relationship. This is less important for a one-off project. Still, it is impossible to undervalue the benefits of a long-term, productive professional relationship of trust and mutual respect.

HOW BEST TO HELP THE RELATIONSHIP FLOURISH AND HANDLE THE TASK OF OUTSIDE COUNSEL MANAGEMENT? HERE ARE THREE KEY WAYS:

• Communication. It’s a simple concept that is sometimes difficult to execute. Nevertheless, it is a critical investment in time and effort; too often, a simple lack of communication or a missed message leads to a major problem easily avoided or more effectively managed with a timely phone call. And remember, the phone works both ways — it’s not entirely the responsibility of the general counsel or the outside firm to initiate conversations.
• Technology. As mentioned earlier, leveraging technology is essential for outside counsel to deliver state-of-the-art efficiency. It’s also a way for general counsel to manage the relationship, through real-time e-billing monitoring and collaboration software, for example. It’s a sensible way to track current projects and leverage information to make informed decisions in the future.
• Mutual respect. If outside counsel is performing admirably, saving money and/or producing exceptional results, they need to be applauded (or rewarded) and, over time, given the appropriate display of earned trust. Similarly, outside counsel should conduct business as if their purse strings were controlling the budget and that the client’s success is their ultimate goal.

Communication and mutual respect are a matter of professional behavior. On the technology front, if you’re a little behind the times, Onit’s European legal spend management solution BusyLamp eBilling.Space can show you how software can be a key team player in collaboration, efficient operations, compliance, and outside counsel management.

Law firms and legal departments may not typically have a reputation for being early adopters of technological advances. But to add value to the business, it is essential now to be taking advantage of the timesaving, performance-enhancing software that is readily available.

Specifically, we will look at software for e-billing, matter management, collaboration, and contract lifecycle management. These tools allow lawyers and other key people at your business to work more accurately and efficiently, focus more time and energy on high-value activities, and gain insight through data capture and analytics. Furthermore, while cost, capabilities, and design vary by brand and product, there most certainly are technological solutions to fit your department or organization, be it small or large, geographically concentrated or widely dispersed.

E-BILLING

By providing a better overview of your legal expenses, along with accuracy and efficiency through automation, e-billing software can allow legal departments and organizations to save time and money and help in-house counsel with controlling outside counsel costs. Additionally, modern legal spend management solutions, such as Onit’s European legal spend management solution BusyLamp eBilling.space, go beyond e-billing capabilities and provide pre-bill information, real-time fee tracking, and powerful analytics. This can give you an edge by turning billing information into strategically important insight for future planning and management.

MATTER MANAGEMENT

Everyone must deal with matter management, from solo practitioners to attorneys at multinational firms and major corporate entities. Some software types will offer features beyond the essential function of managing case and client information, such as documents, calendaring, communications, and contacts. More is not always better, however. You need to define your needs and consider budget and ease of implementation within your current operations. The best matter management solutions will empower the entire organization to work together on legal matters, sharing knowledge and driving results in a highly collaborative fashion.

LEGAL DEPARTMENT COLLABORATION

The ability to collaborate in real-time, securely, and efficiently is critical. Simple tools such as e-mail, instant messaging, and video conferencing are commonplace examples of technological collaboration. But for legal professionals, creating documents, controlling them, sharing, and collaborating in a secure environment has become an essential capability. Again, the key to which platform is best for you rests on your needs: what you want to be able to do, with how many parties are involved, and in coordination with what other systems. Another important factor to consider? What your future looks like. Look for a platform that can scale with your company, supporting the multitudes of processes and documents that come with growth.

CONTRACT LIFECYCLE MANAGEMENT

Contract Lifecycle Management (CLM) involves the end-to-end automation of the entire legal contract management process, reducing costs, freeing up resources, and increasing profits for the organization. The key to an effective CLM solution? One that supports every element of the contract lifecycle — from capture and creation through negotiation, approvals, execution, and management — with integrated AI features to help augment and organize contract review. Integration into existing processes is also critical; to ensure a seamless transition and uninterrupted workflows, look for a solution that works with features like Word and email and can get up and running in a very short amount of time.

Technology is not something for the legal profession to fear. Yes, there may be areas in which software functionality can now deliver a service quicker, cheaper, and better than a well-educated, trained professional. But more than anything, the legal tech world is here developing solutions that will allow the legal profession to operate quicker, cheaper, and better than before — and allow lawyers to use their training and education in a more focused, effective fashion for their clients.

Request a demo of BusyLamp eBilling.space.