Litigation on a Budget - Presentation: Robert Harchut, GlaxoSmithKline - Chief Litigation Officer Summit


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Robert Harchut who is the VP & Associate General Counsel from GlaxoSmithKline participated on a panel at the marcus evans Chief Litigation Officer Summit held at the Broadmoor, Colorado Springs March 21-23, 2013. This is his portion of the presentation titled "Litigation on a Budget - Creating Efficiencies in Case Management Strategies to Reduce Cost and Improve Outcomes."

Join the 2015 Summit along with top Chief Litigation Officers and service providers in an intimate environment for a focused discussion of key new drivers shaping the legal industry today.
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Litigation on a Budget - Presentation: Robert Harchut, GlaxoSmithKline - Chief Litigation Officer Summit

  1. 1. Litigation on a Budget – Creating Efficiencies in Case Management Strategies to Reduce Cost and Improve Outcomes Chief Liti ti Offi Chi f Litigation Officer Summit S it Friday, March 22, 2013 Michael Caplan – Chief Operations Officer, Office of the General Counsel, Marsh & McLennan Bob Harchut - VP & Associate General Counsel GlaxoSmithKline Counsel,Michael Dufault – Chief Counsel, Jet Aviation Americas, General Dynamics
  2. 2. Changing the ParadigmGSK’s Value‐Based Fees and Outside Counsel  ’ Selection Initiatives
  3. 3. Results of VBF InitiativeResultsR lt– In 2008, less than 3% of GSK external spend was through VBFs– By close of 2011, ~68% of GSK’s external spend was through VBFs– Number of VBFs in 2012 (164) was up 145% over total number in 2010 (67)
  4. 4. Outside Counsel Selection Initiative (“OCSI”)Key Components• Consistent Process – Provides a simple and efficient mechanism to assign matters and affords GSK Legal leadership visibility/transparency into these decisions• “Matter-Specific mini-RFI” Tool – Enables in-house counsel to easily request valuable, matter-specific qualifications from outside counsel, provides a consistent methodology for objective analysis of responses, and summarizes data for GSK Legal leadership• Online “Sourcing Room” – Allows outside counsel to submit and update fee proposals for matters and understand the relative competitiveness of their matters, proposal 3
  5. 5. OCSI: What It Is and What It Is Not The OCSI Selection The OCSI Selection Process/Tool IS IS…. Process/Tool IS NOT…. NOT • Support for in-house counsel’s • A replacement for the judgment and decision-making process for matter experience of GSK in-house counsel assignments • A disorganized data-dump of outside • A targeted way to gather and counsel information that is useless or a evaluate meaningful, matter-specific repetition of the data collected in prior large data regarding the objective capabilities scale RFIs of outside counsel • A “bottom-fishing” process of selecting • A “holistic” evaluation of the quality, only the most cost-competitive firm, with experience, and cost-effectiveness little to no regard for quality components of outside counsel • A bureaucratic, overly-complicated • A simple process to create process designed to impede in-house efficiencies through the use of counsel’s swift assignment of matters to standard templates and the leveraging outside counsel of technology ft h l
  6. 6. OCSI: How It Works GSK Outside Counsel In-house In house counsel Procurement Request Form – Receives template Litigation Matter Selected outsidePrepares request and distributes it to Firm X counsel firms (attemplate, selects at selected outside Firm Y counsel least three)least three outside Firm Z complete andcounsel firms return mini-RFI E-Sourcing Room Request Form - – Request Form Receives mini-RFI and Request Form Matter Acquisition - Acquisition Number Price Proposals– Acquisition Number provides data to in- Firm XAnalyzes mini-RFI Firm X Litigation Matter Firm XX Firmresponses and Fi Description of Firm Y house counsel; h l Firm YY Firm Proposed Team ensures matter Firm Yrecommends firm for Firm Z Firm ZZ Firm Experience with assumptions arePractice Group head Opposing Counsel uniform; runs onlineapproval Trial Experience of 1st sourcing room event Firm Z and 2nd chairs , etc.Score GradeCard- VP & Assoc. GC (with Procurement)Firm X 5 Review and approve recommendation; ℡Feedback provided to each firmFirm Y 3 Prepare VBF Engagement LetterFirm Z 4
  7. 7. OCSI: Historic Firm Participation Pre-Matter Post-Matter Number of Number of Number of Completed Events Average Quality Average Quality Firm Event Events Matters vs. Won Score Score Invitations I it ti Completed C l t d Awarded A d d (Percentage) (P t ) (1-5, h (1 5 where 5 i th is the (1 5 where 5 i (1-5, h is maximum) the maximum)Barlow & Burglar 7 6 5 83% 4.5 4.7 Mather Straus 5 4 4 100% 4.3 4.5 Garcia Loeb 3 3 2 67% 4 5 Eliot & Weld 3 3 3 100% 4.2 3Hunt Krieg Lane 3 3 1 33% 3.2 32 4 Beard Swann 3 3 0 0% 3 0 Lee & Trotter 4 1 0 0% 2.5 0 Examples are Fictional
  8. 8. Analyzing the Data High HIGH NESS VALUE Firm 3 FIRMS MPETITIVEN Firm 2 Firm 6 OST Firm 4 CO Firm 5 Firm 1COM Low L Low PERFORMANCE High
  9. 9. Common Misconceptions of Online SourcingRooms “Online Sourcing Rooms are…. • In 2010, GSK successfully used online sourcing rooms for ~10,000 events. • Many for sophisticated services such as IT, Management Consulting, HR, and Financial services. • Prior to the E-Sourcing Room, GSK ensures that firm VBF assumptions are equivalent.…Not Useful for • Firms are able to preview the relative competitiveness of their fee offers to develop theirComplex Services” bidding strategy. • Fee can be adjusted for material changes to assumptions. j g p • GSK Legal has used OCSI successfully not only for complex litigation matters, but also for highly complicated transactions on a global basis (e.g. France, China, Japan, etc.) • The OCSI process is designed with appropriate “human touch points” and support.…Impersonal and Impersonal • GSK’ process is flexible to allow for additional personal interaction as needed. GSK’s i fl ibl t ll f dditi l li t ti d dDamaging to • Opportunity for targeted feedback to outside counsel can assist in strengtheningRelationships” relationships and firm service offerings. • A key objective of OCSI is to increase quality through a holistic assessment of outside counsel’s capabilities against meaningful, matter-specific information.…Driving Decreased • Only firms with the requisite credentials are invited to the E-Sourcing Room.Quality” • The matter will NOT necessarily be awarded to the firm with the lowest priced proposal. • Firms will be scored afterwards on the quality of their representation.