Canadian Lawyer

40 N O V E M B E R / D E C E M B E R 2 0 1 8 w w w . c a n a d i a n l a w y e r m a g . c o m "I think it's absolutely crucial to let your external firm know exactly where your expectations are," she says. Put on paper what the junior associates can do, what needs a senior partner, what is urgent and how many lawyers you want working on the file, says Sidhu. That communication needs to be directed within the com- pany as well, so legal can engage externally, effectively and effi- ciently. Sidhu says she consults with her CEO on what aspects of the file need to be handled by a senior partner and which are less significant from the business standpoint. "I think that helps a lot with the value-based billing and mak- ing sure that you get exactly what you need without breaking your budget," she says. Linardi says knowing your external firms well is key to keep- ing costs down. "I think an often-under-looked avenue for cost containment is relationship building," he says. "I think just hav- ing a good relationship with counsel where expectations are clear and you have a lot of trust in that relationship." And when you've reached an agreement but unpredicted complications arise in the process, "there is nothing that can't be negotiated," Sidhu says. The process is underscored by the 67 per cent of respondents who said general counsel/legal department had the autonomy to select firms. In an encouraging improvement, outside law firms are becoming more proactive and personal in their dealings with corporate legal departments, says Sidhu. Like a friend, the rela- tionship prospers when one side isn't just calling when they need something. Keeping an ear to the street and offering tips or help when external counsel's life intersects with the industry in which ARE YOU USING ALTERNATIVE SERVICE PROVIDERS? 77.21 % 13.97 % 6.62 % 4.41 % 1.47 % Not using Offshore Nearshore Onshore Both WITH YOUR PRIMARY LAW FIRM/ EXTERNAL SERVICE PROVIDER, WHAT TYPE OF BILLING ARRANGEMENT DO YOU USE MOST OFTEN? 1. Billable hours 65.56 % 2. Combination of billable hours and alternative fee arrangements (AFAs) 28.48 % 3. AFAs 3.31 % 4. Flat fees 2.65 % 65.56 % 28.48 % 1. 2. 3. 4. 3.31 % 2.65 % IF USING AFAS, DO YOU FEEL YOU ARE RECEIVING: MORE VALUE 44.62 % THE SAME VALUE 50.77 % LESS VALUE 4.62 % IF YOU USE ALTERNATIVE FEE ARRANGEMENTS, WHAT PERCENTAGE OF THE NON-COMMODITY WORK YOU SEND OUT FALLS UNDER AN AFA? 0 to 25 per cent 60.81 % 25 to 50 per cent 22.97 % 50 to 75 per cent 9.46 % More than 75 per cent 6.76 % WHAT ARE THE MOST IMPORTANT THINGS THAT YOUR LAW FIRMS CAN DO TO IMPROVE WORKING RELATIONSHIPS WITH YOUR COMPANY? LISTED IN ORDER OF IMPORTANCE. 1. Be more concerned with costs 2. Be more practical 3. Understand our business better 4. Be more creative/innovative overall 5. Provide more strategic advice 6. Be more proactive 7. Other 8. Be more concerned with results 9. Act on our feedback 40 % 37.14 % 16.43 % 5 % 1.43 % 35-45 hours 46–50 hours 51–55 hours 56+ hours Don't know WHAT IS THE AVERAGE (ACTUAL) WORK WEEK FOR MEMBERS OF YOUR DEPARTMENT? C O R P O R A T E C O U N S E L S U R V E Y

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