Legal news and trends for Canadian in-house counsel and c-suite executives
Issue link: https://digital.canadianlawyermag.com/i/50891
A joint venture with Serengeti Law a chance to quickly assess whether the firm is meeting our engagement terms and whether we are on track to accom- plish the goals we set at the project's outset. Advantages of electronic bill review • The system delivers bills as well as clear summaries of billed activities, immediately feeding management reports without any data re-entry. • The system automatically audits bills for compliance with retention terms, rate changes, new timekeepers, expense guideline violations, and budget performance. Any issues can be dealt with immediately, before the issues become more problematic and the money is already spent. Resolving a matter 3:00pm 0 Reward results, not hours When a matter is resolved, the system prompts me to cap- ture key information about resolution, including results achieved and lessons learned, along with a final evaluation of outside counsel. I'll use this information when assigning new work and applying lessons learned to future projects. Also, with reliable information about how long projects take, fees and expenses incurred, and results we can set fees that reward better-than-average performance (rather than paying hourly, which often encourages inefficiency). We work with some outside counsel to define goals for duration, spending, and outcome for a project, and then we withhold a percentage (typically 20 per cent) of fees incurred. If the firm exceeds the goals, the firm receives the 20 per cent plus a bonus that may equal the withheld amount, sharing the savings by giving the firm a premium over its standard hourly rates. On the other hand, if the firm does not meet the goals, we withhold part or all of the withheld amount. By systematically capturing resolution information, we increase efficiency by applying lessons learned to future projects, and we create a realistic framework for fees that reward better performance. Advantages of capturing matter resolution information • Lessons learned and a bank of work product can save time and money in future projects. • Resolution information provides a realistic framework for alternative fees that encourage law firm efficiency. Putting it together 4:00pm Transforming efficiency into greater savings With a systematic legal spend management process, in-house and outside counsel can put project plans, including budgets, in place and monitor progress to identify areas that need attention. Outside counsel and clients can work together to drive efficiency as they work toward common goals, includ- ing alternative fees, which encourage efficiency and reward optimal performance. At the end of the day, in-house counsel can run reports that will identify even more opportunities for saving, including areas of developing spending where preventive law may reduce the volume of legal work. By adopting systems that make legal spend management a part of daily work, you can achieve lasting results that drive even more savings from inside and outside counsel. Rob Thomas, vice president of strategic development for Serengeti Law, practised law for more than 30 years and is now a widely published authority on the use of technology for collaboration and the measurement of attorney performance. He can be reached at rob.thomas@serengetilaw.com. Serengeti Law has compiled a collection of legal spend management resources, including articles published by the Association of Corporate Counsel, Canadian Lawyer magazine, and the International Legal Technology Association. These resources can help you learn more about implementing legal spend management in your law department, including selecting the best tools for your needs. Visit www.serengetilaw.com/spend for additional resources.