Page 22 - CCCA62_2009

CCCA_V3No2_Orders-FIN.qxd:CCCA_V1No1_DriversSeat-FIN.qxd 4/27/09 5:04 PM Page 22 Cover Alternative billing structures Paying outside counsel by the hour gives them little incentive to business practicalities? Without clear, specific directions, you manage tasks more efficiently. And while it’s a safe bet that the run the risk of external counsel delving far deeper than nec- legal world won’t say good-bye to the billable hour any time essary or going off on tangents. soon, many clients are demanding greater budget certainty That’s why taking time up front to define exactly what from the law firms they deal with. you’re looking for is a smart investment. “I think you’ll see According to the CCCA’s In-House Counsel Barometer 2009, your costs go down, and I think you’ll see law firm wastage go 38 per cent of corporate counsel have used alternative billing down as well,” says O’Dea. arrangements. Fixed fees were the most popular option, fol- Sean Kennedy, senior regional counsel for Canada Post 10 lowed by percent discounts, capped fees, blended rates, and a Oversee projects closely bonus structure based on results. Keeping a close eye on the law firms you hire puts you in good company.More and more cor- Corporation, is among that number, although his alternative fee porate counsel are applying basic vendor management tech- experiments have met with mixed success. With one firm, he reg- niques including project plans, budgets, and results tracking. ularly negotiates block rates for litigating employee discharge It starts when you hand over the file. Instead of saying “see cases, setting an average fee per file for a certain volume of work. you in six months,” be clear about who will do which tasks. It’s an arrangement that has satisfied both sides for a decade. Specify you want a five-year lawyer to handle particular aspects Other firms have balked at the arrangement, however, main- of a file and a senior lawyer to review it, for example. Don’t taining that they weren’t getting enough remuneration for the forget to restrict the total size of the team as well. effort. “There’s still a very great reluctance on the part of out- “Bigger law firms have a tendency to wolf pack it,” says side law firms to enter into or entertain these ideas,” he says. Kennedy. “They’ll pile bodies onto things to draw opinions Of course, not all legal work is amenable to flat fee invoicing. on whatever occurs to the managing partner.”That’s why he There must be a high degree of predictability or a large enough requires a list of all the people working on the file and a jus- number of similar files that costs can be averaged. Plus you need tification of their necessity. detailed data on the time, skills and experience required to do the Set budgets up front, and be sure to monitor progress reg- task, along with a clear direction for outside counsel to follow. ularly. Sutcliffe, for example, demands monthly invoices.“I’m Ordonnances restrictives Un guide en 10 points pour contrôler les coûts des avocats externes. écession économique,crise du crédit… problème juridique, il vaut mieux vous temps de préparation de vos documents. RLa conjoncture économique a forcé en occuper plutôt que débourser des Effectuer des recherches ou planifier des les compagnies à dégraisser leurs finances centaines de dollars en sous-traitance. litiges. Facturez aussi en ligne. avec plus de zèle que jamais.Cela vaut égale- ment pour les dépenses des départements 2. Enrichissez votre boîte à outils 3. Contrôlez le flux juridiques, qui scrutent alors à la loupe leur Munissez-vous de tous les outils qui Transférer la responsabilité de vos unités budget de sous-traitance. Une tâche ardue, faciliteront votre travail à l’interne pour d’affaires à votre département juridique compte tenu des heures facturables et des économiser temps et argent. Comme les est essentiel pour réduire les coûts à charges de travail à la hausse. secousses juridiques dans le monde des l’externe. En canalisant les décisions rela- Voici quelques conseils pour faciliter affaires sont souvent récurrentes (plaintes tives à la sous-traitance, vous contrôlerez cette besogne : commerciales, licenciements injustes, res- mieux votre budget. ponsabilité par rapport à un produit), con- 1. Faites le travail vous-mêmes servez vos précédents. Préparez des mod- 4. Choisissez parcimonieusement Chaque fois que vous avez l’expertise et èles, des aide-mémoires et des protocoles Moins vous aurez de cabinets avec lesquels la main-d’oeuvre pour remédier à un des meilleures pratiques pour réduire le vous transigerez, moins vous perdrez de 22 CCCA Canadian Corporate Counsel Association SUMMER 2009