Page 8 - CCCA 226419 Magazine Fall 2014

{ PerForMaNCe iN tHe laW dePartMeNt } money In Brussels By Richard Stock last september i taught a half-day session advertised as The value proposition for a law de- “Money, Money, Money” for the CCCa’s Belgian counterpart, partment must extend beyond its cost to include both the services and results it l’institut des juristes d’entreprise (ije), as part of its legal delivers, the most compelling of which Management academy. the session focused on how to hold a are the results, or outcome-oriented ob- jectives, and their targets. They must be conversation about the cost of legal services with the CFo and SMART (Specifc, Measurable, Achiev- others in the company keen on measuring the contribution of able, Results-oriented, and Time-bound) and at least half of them should relate to a the law department. combination of business unit targets and 3-5 signifcant corporate projects. Rounding out the ingredients in the n-house counsel in attendance repre- Each of the 40 in-house counsel par- recipe, the business plan and metrics for sented most industry sectors, and many ticipating in the session had documented a law department should meet six criteria: Iwere country and regional counsel for personal objectives at work, but only 15 1. They are relevant to the corporate plan. multinationals like Unilever, British Tele- had written business plans for the de- 2. They are prospective, with measure- com, BNP Paribas-Fortis, Nestlé and Pep- partment, and only 8 used a range of able objectives. sico. Apart from banking, most legal de- fnancial and non-fnancial metrics and 3. They are effective with high impact. partments averaged 3-5 lawyers, but there scorecards. Why bother with such ad- 4. They include an approach to talent were quite a few with only one in-house ministration? First, the CFO and others management, especially with members counsel. Overall, the mix was similar to are pressing for performance indicators. of the department. Canadian and U.S. law departments. Second, metrics help counter stereotypes 5. They ensure knowledge transfer from I positioned the discussion about costs that the law department is exempt from law frms and the law department to and metrics in a balanced way, that is to measurement. Third, metrics, scorecards business units. say, ensuring it was not only about mon- and the related reporting manage expec- 6. They include a strong contribution to ey. The premise is that an undue focus on tations for legal services when it comes the bottom line. legal economics inherently places a law to priorities, workfow and workloads. General Counsel must also consider a department in a defensive position. The Fourth, performance indicators with number of critical success factors if they challenges are then how to better capture objectives and targets provide clarity for wish to leverage the business plan and and communicate the department’s de- members of the legal department, pro- metrics for strategic impact, including: velopmental and strategic contributions vided they are aligned with personal per- ■ Some form of integration but not co- to the company’s “powers that be.” formance plans. location with client teams. 8 CCCa Magazine | Fall 2014 autoMne