Page 9 - CCCA 226419 Magazine Fall 2014

{ PerForMaNCe iN tHe laW dePartMeNt } “ Te value proposition for a law department must extend beyond its cost to include both the services and results it delivers. General Counsel must have good data ■ Effective budgeting and management However, all this takes time the law de- ” systems for internal and external partment does not believe it has. It follows to develop a sound business plan, with a counsel. that the prerequisite is to generate up to broad base of performance indicators and ■ A systematic and strategic approach to 20% more capacity with existing resourc- targets. They must communicate these litigation management. es. This is basic productivity improvement, formally to the CEO, executive team, ■ Core business and leadership skills for which has immediate appeal to CFOs and members of the law department and busi- each lawyer in the department. others inclined to focus on the bottom ness units. Semi-annual and quarterly ■ Key performance indicators and some line. A multi-faceted program for work progress reporting to each stakeholder is form of a scorecard to manage and re- intake and allocation in the department a sound management practice. port progress. is a good start, reducing the number of In summary, the challenge amounts to: The sampling below of the objectives and users, making those users more self-suff- ■ Making a commitment to metrics; targets for some common key perfor- cient, controlling communications traffc ■ Investing 20 hours over a two-week pe- mance indicators (KPIs) shows that most to minimize interruptions, and reducing riod once a year to set up the business are measurable and will hold up well in administrative and practice management plan and scorecard; discussion with a company CFO and the time. And each of these initiatives lend ■ Spending 10 hours per quarter to moni- executive team: themselves nicely to measurable targets. tor and report; ■ Staying focused; and KPI ObjectIve target ■ Making sure there is a strategy for ex- Results Percentage of lawsuits settled or in settlement 90% ecution against plan and targets. range The law department can then reach its full Results Commercial lawyers performance on the 10 most 15 points as evaluated potential. Metrics and money will provide complex fles: Exceeds = 2 pts; Meets = 1 pt; Does semi-annually by business Not Meet = 0 pts. units the leverage, not the barrier. ❚ Strategic Impact Reduce percentage of operational support work 70% of departmental hours in favour of strategic, developmental and special are strategic project work Richard G. Stock, M.A., FCIS, CMC, is a partner with Catalyst Operating Practices Guidelines for contract reviews, support resources 50% reduction in contract Consulting. The frm has been and business unit training review resources designated the Preferred Knowledge Transfer Train designated employees in contracts to reduce 90% of eligible employees Provider for Legal Department legal requirements by 50% reached Consulting by the CCCA for the External Legal Reduce average rate paid to external counsel 10% reduction from past 18 years. Richard can be Spend previous year contacted at 416-367-4447 Unit Cost 5% reduction in hourly rate of law department $140 per hour fully loaded or rstock@catalystlegal.com. Total Legal Spend In-source 1,000 hours of labour and Reduce external legal spend employment work by $250,000 per year Canadian Corporate Counsel assoCiation | CCCa-aCCje.org 9