Canadian Lawyer

w w w . C A N A D I A N L a w y e r m a g . c o m N o v e m b e r / D e c e m b e r 2 0 1 4 3 Upping your game Director/Group Publisher: Karen Lorimer karen.lorimer@thomsonreuters.com Editor in Chief: Gail J. Cohen gail.cohen@thomsonreuters.com Staff Writer: Arshy Mann arshy.mann@thomsonreuters.com Copy Editor: James Kang Art Director: Bill Hunter Production Co-ordinator: Catherine Giles catherine.giles@thomsonreuters.com Contributors: Jean Sorensen, donalee Moulton, Pascal Elie, Geoff Ellwand, Marg. Bruineman, Jennifer Brown, Jim Middlemiss, Luis Millán, Ava Chisling, Shannon Kari. Canadian Lawyer is published 11 times a year by Thomson Reuters Canada Ltd. All rights reserved. Contents may not be reprinted without written permission. The opinions expressed in articles are not necessarily those of the publisher. Information presented is compiled from sources believed to be accurate, however, the publisher assumes no responsibility for errors or omissions. Canadian Lawyer disclaims any warranty as to the accuracy, completeness or currency of the contents of this publication and disclaims all liability in respect of the results of any action taken or not taken in reliance upon information in this publication. Advertising Sales Representatives Legal Suppliers: Kimberlee Pascoe Tel: (416) 649-8875 E-mail: kimberlee.pascoe@thomsonreuters.com Law Firms: Joseph Galea Tel: (416) 649-9919 E-mail: joseph.galea@thomsonreuters.com Law Firms: Grace So Tel: (416) 609-5838 E-mail: grace.so@thomsonreuters.com Law Firms: Steffanie Munroe Tel: 416-298-5077 E-mail: steffanie.munroe@thomsonreuters.com Canadian Lawyer Magazine Thomson Reuters Canada Ltd. One Corporate Plaza, 2075 Kennedy Rd., Toronto, ON. M1T 3V4 Tel: (416) 298-5141 Fax: (416) 649-7870 E-mail: cl.editor@thomsonreuters.com Web: www.canadianlawyermag.com Linkedin: linkd.in/179bx8t Twitter: @canlawmag Publications Mail Agreement #40766500 ISSN 0703-2129 Copyright © 2014 HST Registration #R121349799 RETURN UNDELIVERABLE CANADIAN ADDRESS TO: CIRCULATION DEPARTMENT ONE CORPORATE PLAzA 2075 KENNEDy RD., TORONTO, ON. M1T 3V4 RETOURNER TOUTE CORRESPONDANCE NE POUVANT ÊTRE LIVRÉE AU CANADA AU SERVICE DES PUBLICATIONS ONE CORPORATE PLAzA, 2075 KENNEDy RD., TORONTO, ON. M1T 3V4 Circulation/Address Changes/Subscriptions Keith Fulford: Tel: (416) 649-9585 Fax: (416) 649-7870 E-mail: keith.fulford@thomsonreuters.com Subscription rates: Canada1 year print and digital $75 plus HST, 1 year digital only $55. Outside Canada 1 year print & digital $95, 1 year digital only $55. Student rate 1 year print and digital $38 plus HST, 1 year digital only $20 plus HST. For all circulation inquiries and address changes send a copy of your mailing label or labels along with your request in writing to Canadian Lawyer , One Corporate Plaza, 2075 Kennedy Rd., Toronto, ON. M1T 3V4 Indexed in the Canadian Periodical Index by gail j. cohen Editor's dEsk T he annual Canadian Lawyer Cor- porate Counsel Survey in this issue has a strong focus on alternative fee arrangements. AFAs are what everyone — law firm management, in-house coun- sel, law associations, legal consultants, and anyone else who cares about the business of law — is talking about. The thing is, while everyone is talking about them, few can actually pinpoint what an AFA is. Is a discount an AFA? Some say yes, and some say no. Is a flat fee an AFA? Same thing. "What some people put in the category of AFA doesn't actually create incentives for efficiency. That's when I question whether they are truly changing the landscape and should they be called AFAs?" says Peter Gutelius, assistant general counsel at RBC, in the "Seeking alternative arrangments" story about the survey. Gutelius says what he and other cor- porate counsel are looking for from their service providers is more efficiency in getting the work done. That, rather than discounts on hourly rates, will bring pric- es down. That sentiment was echoed by McCarthy Tétrault LLP CEO Marc-André Blanchard at a recent "fireside chat" with the Toronto chapter of the Legal Market- ing Association. From the law firm point of view, firms "need to differentiate your- self in the eye of the client," he says. It's not just about industry expertise but about "being more efficient." Blanchard was "chatting" with Dan- iel Desjardins, the senior vice president, general counsel, and corporate secretary at Bombardier Inc., who had penned an open letter to law firms earlier this year. His missive, which caused some waves, essentially called on law firms to act more like businesses. Blanchard, whose firm is one of the largest in Canada, agrees. "We are one of the last industries to get to predictability," he says. "Where we need to change are the processes in our firms." McCarthys was one of the first Cana- dian firms to embrace project manage- ment, which has become a mainstay of the industry, particularly on large matters at large firms that deal with big public or private organizations. He admits project management doesn't work in every case but says the firm has learned from it's mistakes and holds true to the process. "Project management is the real thing." He challenges other law firms across the country to stop holding back on innova- tion because, as Desjardins points out, much of the legal services he uses are global. Canadian firms have to be able to compete with not only the firm down the street but with every firm, everywhere. And sharing success stories will make all Canadian firms stronger, says Blanchard. "If we share best practices, we can all become the best service providers in the world." It's also not just about other law firms. "We need to compete with the accounting companies," says Blanchard. And to do that, it's incumbent on managing partners and relationship partners to build trust with their clients. "We want to become a trusted adviser long term with clients," he says. That means spending time with clients, understanding the legal depart- ments' needs, as well as the aim and direc- tion of the company. If you understand the clients' priorities, resources, and focus, your firm can be part of their strategy and plan your firm's service plan around "where the client is going." For example, Desjardins says if your client sells software, work with them to provide a legal solution so their customers can be compliant with laws and regula- tions in all regions where they sell it. "If you know your client you can support them in where they're going." He says Bombardier goes to its clients to do the same thing. Not every client relationship will work this way but for the biggest and most important at every firm, it's the best bet. "We need to up the game," says Blanchard.

• Cover