ACC’s 2008 Annual Meeting Informed. In-house. Indispensable. Tuesday, October 21 11:00 am-12:30 pm 509 Metrics Mania: Leveraging Law Department Metrics to Manage Costs and Improve Performance Arvie J. Anderson Patent Counsel and Six Sigma Black Belt Eli Lilly & Company Eric Chung Director of Corporate Legal Affairs Atmel Corporation Mary B. Clark Vice President Law and Deputy General Counsel LexisNexis Miguel R. Rivera Sr. Associate General Counsel Wal-Mart Stores Incorporated This material is protected by copyright. Copyright © 2008 various authors and the Association of Corporate Counsel (ACC). Materials may not be reproduced without the consent of ACC. Reprint permission requests should be directed to ACC’s Legal Resources Department at ACC: 202/293-4103, ext. 338; [email protected] ACC's 2008 Annual Meeting Informed. In-house. Indispensable. Prior to joining LexisNexis, Ms. Clark practiced law as corporate counsel and in private Faculty Biographies litigation practice. Arvie Anderson Ms. Clark has shared her expertise at numerous conferences hosted by professional organizations such as the American Bar Association, LegalTech, and the Association of Arvie Anderson is a patent attorney at Eli Lilly and Company in Indianapolis. For the Corporate Counsel, and was selected by her peers as a Northern California Super Lawyer past two years, Mr. Anderson has been a Six Sigma Black Belt for the law division. He is in business law. responsible for legal process improvement projects across the department in areas such as budgeting, IT utilization, patent procurement, and litigation cost management. Beginning Ms. Clark is a graduate of the University of Kansas School of Law. October 1, 2008, Mr. Anderson will transition into the newly created role of regional patent counsel for the Lilly Commonwealth Affiliates of Canada, New Zealand, Miguel R. Rivera Sr. Australia, and South Africa. In this capacity, Mr. Anderson will focus on the areas of litigation and advocacy while continuing to address infrastructure improvements within Miguel R. Rivera Sr. is associate general counsel in the class action division of the Wal- the Lilly OUS IP. Mart legal department where he defends Wal-Mart in complex class action cases around the country. Prior to joining the class action division, Mr. Rivera served as associate Prior to this current role, Mr. Anderson supported Lilly Neuroscience as a patent counsel. general counsel for outside counsel management in the administration and external In that capacity he counseled global business units on IP exclusivity, prosecuted small relations division of the Wal-Mart legal department. molecule patent applications, and supported Lilly’s drug discovery efforts. Prior to joining Wal-Mart, Mr. Rivera was appointed Commissioner of Labor for the state Mr. Anderson received a BS from Michigan State University in 1994 and is a graduate of of Indiana, and served as a member of the Governor’s cabinet. As Commissioner of the University of Michigan Law School. Labor, Mr. Rivera was responsible for managing the Indiana Department of Labor, which includes the Indiana Occupational Safety and Health Administration (IOSHA), the state Eric Chung Wage & Hour and Child Labor divisions, and underground mine safety and mine rescue. Mr. Rivera also advised the Governor on issues of public policy, law, labor, and Eric Chung currently serves as director of corporate legal affairs for Atmel Corporation, a underground coal mine safety and rescue. public semiconductor company, in San Francisco. He is responsible for securities, board matters, M&A, stock administration, ethics, and compliance. Mr. Rivera is a well-recognized expert in the area of outside counsel management and regularly speaks around the country on this and issues related to diversity. Mr. Rivera is Prior to joining Atmel, Mr. Chung was the general counsel for Protiviti Inc., a global risk also very involved in the ACC and is a member of the Bentonville Board of Education. management firm. Before going in-house, Mr. Chung was an associate with Simpson Thacher & Bartlett LLP in the firm's corporate practice. Mr. Rivera earned a BA from the University of Illinois, and is a graduate of the College of Law at the University of Illinois. Mr. Chung received a BS from the University of Western of Ontario and is a graduate of Vanderbilt University Law School. Mary B. Clark Mary B. Clark is vice president, law, and deputy general counsel for LexisNexis in Sacramento. Ms. Clark currently works with alliances and customer transactions in LexisNexis’s Global Practice Management products and services solution line. She has experience in all areas of legal resource planning and management, including law-firm client relations and partnering, legal billing metrics and analysis, technologies for the legal industry, and current best practices. For six years, Ms. Clark managed a team of attorneys and CPAs who consulted with government, law firms, and corporate entities and testified as experts at trial. Her career also includes years of executive responsibility for business operations. 2 of 85 ACC's 2008 Annual Meeting Informed. In-house. Indispensable. Why Quality Metrics? Where Are Your Metrics? !"Demonstrate your measure of success !" Internal and external stakeholders and systems !" Availability !"A standard to assess performance !" Manual aggregation or technology !" Cost !" Outcome !" Time No information Information Information !"Foundational to quality management collected collected in collected in one multiple systems system !"TQM (Total Quality Management), Six Sigma, BPR (Business Process Reengineering), CTQ (Critical to Quality) What Are the Right Metrics? Pitfalls !"Performance against customer expectations !"Collecting useless (e.g., inaccurate or !"Efficiency of internal workflow incomplete) data !"ROI for outside counsel performance !"Overly complex metrics ! " Overall financial performance and ! " Measuring too many variables !"Be SMART ! " Other management data (volume v. capacity) !" Specific, Measurable, Actionable, Relevant Timely 3 of 85 ACC's 2008 Annual Meeting Informed. In-house. Indispensable. Metrics Strategy Matrix Metrics Strategy Matrix STRATEGY OUTSIDE COUNSEL INTERNAL STAFF EFFICIENCIES/ TECHNOLOGY STRATEGY OUTSIDE COUNSEL INTERNAL STAFF EFFICIENCIES/ TECHNOLOGY Outside Counsel Create billing guidelines Prioritize and evaluate Appoint manager for process/technology/ Management workload implement electronic billing, contract Outside Counsel Create billing guidelines Prioritize and evaluate Appoint manager for process/technology/ management and other systems Management workload implement electronic billing, contract management and other systems Early Settlement Negotiate alternative fees Leverage paralegal and Contract directly for support services Early Settlement Negotiate alternative fees and Leverage paralegal and Contract directly for support services and rates/ initiate support staff Strategy rates/ initiate support staff Strategy competitive bidding competitive bidding IP Strategy Negotiate fixed rates for Train upward Systematize critical data – agent, inventor, IP Strategy Negotiate fixed rates for Train upward Systematize critical data – agent, inventor, defined, repeatable services/ country, local agent, IP status, docket number defined, repeatable country, local agent, IP status, docket Offshore & outsource services/ number Offshore & outsource Document/Discovery Risk-sharing Standardize forms, contracts Use procurement team Document/Discovery Risk-sharing Standardize forms, contracts Use procurement team Management Management Active Risk Management Offshore & outsource routine Utilize developed expertise Use metrics & measurement; scorecards Active Risk Management Offshore & outsource routine Utilize developed expertise Use metrics & measurement; scorecards work work Compliance/Regulatory Share data Standardize forms and Utilize collaborative systems for reporting Compliance/Regulatory Share data Standardize forms and Utilize collaborative systems for reporting Strategy automate scheduling Strategy automate scheduling Metrics Strategy Matrix Metrics Strategy Matrix STRATEGY OUTSIDE COUNSEL INTERNAL STAFF EFFICIENCIES/ STRATEGY OUTSIDE COUNSEL INTERNAL STAFF EFFICIENCIES/ TECHNOLOGY TECHNOLOGY Outside Counsel Create billing guidelines Prioritize and evaluate Appoint manager for process/technology/ Outside Counsel Create billing guidelines Prioritize and evaluate Appoint manager for process/technology/ Management workload implement electronic billing, contract Management workload implement electronic billing, contract management and other systems management and other systems Early Settlement Negotiate alternative fees Leverage paralegal and Contract directly for support services Early Settlement Negotiate alternative fees Leverage paralegal and Contract directly for support services Strategy and rates/ initiate support staff Strategy and rates/ initiate support staff competitive bidding competitive bidding IP Strategy Negotiate fixed rates for Train upward Systematize critical data – agent, inventor, IP Strategy Negotiate fixed rates for Train upward Systematize critical data – agent, inventor, defined, repeatable services/ country, local agent, IP status, docket defined, repeatable services/ country, local agent, IP status, docket number Offshore & outsource number Offshore & outsource Document/Discovery Risk-sharing Standardize forms, contracts Use procurement team Document/Discovery Risk-sharing Standardize forms, Use procurement team