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CCCA_V7No4_Dept-Performance-FIN_CCCA 13-11-25 12:05 PM Page 9 Performance in the Law Department and to be specific about their contribution what a legal department does is not cap- • Technology to the following year’s corporate priorities. tured by corporate planning processes. • Turnaround The vocabulary is shifting from activity Every legal department should prepare Financial descriptions that begin with words like its own annual business plan. No doubt it • Unit Cost “support,” “assist” and “enable.” One should be aligned with corporate priori- • Total Legal Spend General Counsel reported that corporate ties. But the plan should go further to • External Counsel planning instructions explicitly precluded capture a range of activities across the the use of this category of descriptors pre- department. Many legal departments have Shifting priorities cisely because it make it too difficult to produced quite viable plans by using bal- Inside counsel tell us that they are stymied isolate contributions and to hold individ- anced scorecard architecture with its four when it comes time to create a detailed uals and departments accountable for their categories. From there, it is possible to business plan, much less to invest the time share of joint initiatives. Instead, terms like customize KPIs and then attach their to follow up and to execute each of its ele- “produce,” “deliver” and “conclude” focus objectives and targets. The categories and ments according to a set schedule. They are the attention on results rather than on KPIs referred to in the November semi- frustrated by current demands either process, and making the measurement of nar series were: because they are being inundated with results more straightforward. small matters or consumed with large proj- Invariably, legal departments describe Clients ects. There are a few things to keep in mind such planning processes and their rules as • Results when deciding to shift priorities and restrictive. Moreover, requirements for • Strategic Impact resources to make the legal department a objectives that align with corporate priori- • Overall Satisfaction more strategic business contributor: ties appear to fall short for the legal depart- People • identify 3 – 5 high visibility projects or cor- ment because they fail to tell the whole • Engagement porate business priorities that have strategic story of what the department does in a • Competency Management value to the organization as a whole; year. Inside counsel have “fingers in every • Knowledge Transfer • prepare an annual business plan for the pie” throughout the organization. It makes Business Process Improvement legal department that includes strategic sense that much — maybe too much — of • Operating Practices projects and other objectives that improve the performance of the department; Category Indicator Initiative Target/ Measure Result • find ways to generate 20 per cent capac- (KPI) ity in the department by shedding rou- Clients Results 1. Value Factors introduced for Target 80 % score by primary Canadian firms by law firms. tine work and occasional clients in order April 1, 2014. to do what is in the plan; 2. Annual survey of all users The extent (5-part • measure everything and report progress requiring 50 or more hours scale) to which planned to both the department and the organi- of legal service per year. results are delivered by legal counsel. Target zation’s executive leadership team. 70% satisfied. Being selective and strategic about work 3. TBA are pivotal and essential for a successful Strategic 1. Contracts Project 3-part scale (did not legal department. Impact meet, met, exceeded) evaluated by the CEO 2. Procurement Project 3-part scale ( did not Richard G. Stock, meet, met, exceeded) M.A., FCIS, evaluated by the CEO CMC is a partner 3. AR Project 3-part scale ( did not meet, met, exceeded) with Catalyst evaluated by the CEO Consulting. The firm 4. International or US — TBA 3-part scale ( did not has been designated meet, met, exceeded) the Preferred evaluated by the CEO Provider for Legal Department Consulting by 5. Shift of internal resources 20 % ➪ 0 – 5 hours to more strategic activities 40 % ➪ 5 – 25 hours the Canadian Corporate Counsel Association. 40 % ➪ + 25 hours Richard can be reached at (416) 367-4447 or by Dec 2013 at rstock@catalystlegal.com. HIVER 2013 CCCA Canadian Corporate Counsel Association 9