Page 9 - CCCA Magazine Spring 2015

{ PerForMaNCe iN tHe law dePartMeNt } “ Law departments have come into their own csF: professional development initiatives are focused on current and future core competency requirements. over the last few decades, but are they nimble Four elements support this factor: ” ■ Development is focused on core com- enough? Are they just tending goal or on the petencies for lawyers and paralegals. ■ Future talent requirements are forecast. front line seeking out ways to add value? ership skills development tracks exist. ■ There is multi-source feedback on in- those of the organization. Planning as- csF: there is a strategic sourcing ■ Career path plans and management/lead- dividual performance. sumptions are rarely documented and not approach to external counsel retention Public companies and most levels of gov- supported by multi-year forecasting of the and management. ernment beneft from strong HR support demand for legal services by volume, type Two elements are suffcient for this fac- for this factor. This is less true in other and complexity. While law departments tor, given the hard-wired, relationship- settings. Core legal competencies are complete corporate planning forms, they based nature of law departments with not identifed by experience level. Law remain poorly aligned to corporate objec- external counsel: department demographics are poorly tives and reactive in deploying their re- ■ The law department retains external aligned with work type and complexity. sources—deserving only 5 out of 10. counsel based on strategic alliances, Multi-source feedback, especially client competitive bidding and perfor- feedback, tends to be of the “walk-about” csF: the law department has effective mance evaluations aligned with core variety. Best practices warranting a per- budgeting processes and fnancial competencies used to evaluate inside fect score of 10 can be found in Canadian reporting systems in place. counsel. law departments, but for the most part, Three elements support this factor: ■ Billing data is used to identify and rein- GCs do not invest enough time to develop ■ There is agreement on a comprehensive force the use of best practices. their own competencies and those of the reporting format for fnancial reporting GCs tend to avoid competitive processes law department, defaulting instead to a by the law department to its clients. to retain external counsel. They are not “survival of the fttest” form of profes- ■ Procedures and systems are in place comfortable preparing specifcations, sional development. The overall score is 5 for the law department and exter- drafting RFPs, developing alternative out of 10. nal counsel to collaborate on budget fee arrangements, managing projects With scores like these, the condition of management. and negotiating with preferred counsel. many law departments is critical. There is ■ Clients monitor legal spending and This is in part because they fail to ex- much work to be done. ❚ provide input. amine billing data, intervene in law frm Few law departments record time by matter business practices or make the time to Richard G. Stock, M.A., FCIS, and clients. Even without this law-frm type do so. Banking, governments and their CMC, is a partner with Catalyst of activity, quarterly reporting to clients of agencies, and multi-nationals tend to be Consulting. The frm has been the consumption of legal resources seldom more structured in sourcing professional designated the Preferred occurs. Legal project management and bud- services. However, even with these, there Provider for Legal Department geting with external counsel remain in their is precious little innovation and risk/re- Consulting by the CCCA for the infancy. Overall, law departments score only ward sharing with multi-year partnering past 19 years. Richard can be 3 out of 10 for failing to move beyond dis- agreements. Law departments receive 4 contacted at 416-367-4447 counted hourly rates with external counsel. out of 10. or rstock@catalystlegal.com. Canadian Corporate Counsel assoCiation | CCCa-aCCje.org 9