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CCCA_V2No4_Dept-Performance-FIN.qxd:CCCA_V1No2_Dept-MgLaw-V1.qxd 11/24/08 2:35 PM Page 12 Performance In The Law Department • for the most part, law departments do • although 28% use non-hourly billing not reflect best practices in legal services not know how many hours of legal some of the time, fully 90% of the legal cost management today. Even after the work they have purchased by category work is still billed on a variation of the 10% rate discount is in, law departments of legal work in the last three years. hourly rate. spending as little as $250,000 per year They do not forecast their demand typically spend 25% more than they using the number of hours by legal spe- It takes time (and some money) for a should, because they do not call on the cialty and they do not rely on grada- law department to do all the right things full range of measures and tools available tions in complexity of legal work for to manage the costs of legal services. to them. planning and management purposes; Many law departments do not believe that • there are no recognized“optimal”staffing the pain will be worth the gain. Others Richard G. Stock, configurations for law firms to use for are very concerned that procurement M.A., FCIS, CMC given categories of work, and certainly processes, project/matter management is a partner with none are discussed with law firms. practices, and discussions about rates Catalyst Consulting. Everything is free-form. Corporate would prove antithetical to relationship- The firm has been counsel associations could do much to fill based, collegial legal services. Still others designated by the this void; are too busy to make the time. Canadian Corporate • only 60% of law departments negotiate For the most part, the tools and Counsel Association as a Recognized discounts on fees,and 40% pay full retail; processes in use are too unfamiliar for law Supplier for the provision of Legal Services • only 30% use matter budgeting and departments to use. General counsel then Consulting. It also collaborates with the require detailed fee estimates by matter default to traditional arrangements with Australian Corporate Lawyers Association. from their law firms; their primary firms. Richard can be contacted at (416) 367-4447 • only 31% have agreed-upon service lev- Such a casual approach may have been ext 1 or through the website at els; and acceptable even five years ago, but it does rstock@catalystlegal.com. 12 CCCA Canadian Corporate Counsel Association WINTER 2008 CCCA64_012.indd 1 11/27/2008 11:00:06 AM