NewLaw Paradigm: Contract Management for LPO and Law Firms


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NewLaw Paradigm: Contract Management for LPO and Law Firms

  1. 1. NewLaw Paradigm: Contract Management 6 February 2014
  2. 2. THE PRESENTERS Jason McQuillen Head of Managed Legal Services at Experienced commercial contracts lawyer who has worked extensively in-house as well as in private practice. Leading the charge at to invent how to support portfolios of contracts in smarter ways. David R. Chamberlin Head of Legal Services at Cognia Law Former US transactional lawyer who has successfully managed major contract management Legal Process Outsourcing engagements from a variety of offshore and nearshore jurisdictions for Fortune/Global 500 companies. At Cognia Law, David is responsible for the design and delivery of client services. 2
  3. 3. EXECUTIVE SUMMARY • Part 1: The Legal Executive Challenge and End-to-End Support • Part 2: Resourcing, Process and Technology • Part 3: Pricing and Value • Part 4: Case Studies and Closing Thoughts 3
  5. 5. STRATEGIC OBJECTIVES Demonstrating Value Evolving Expectations Gatekeeper Position Sales Procurement Legal Business Skilled lawyer Reduce risk / loss Reducing of margin cost of delivery (BTL) Contribute to value of service (ATL) Finance 5
  6. 6. TAPPING INTO THE ECOSYSTEM NewLaw is structured to provide expertise and systemic service support into core functional contract management areas NewLaw Traditional Law Firm: High-End Ad Hoc Advice Knowledge Management Content Management Legal Process Management Performance Management 6
  7. 7. CONTRACT LIFE-CYCLE Providing Value At Each Phase Below-the-Line Design Continuous improvement Production Examples • Legal Spend • Risk Management • Efficiency/Speed NewLaw Ongoing management Examples • Self-Service • ATL Value • Remedies • Analytics Triage Execution and storage Review and negotiation Above-the-Line 7
  8. 8. DESIGN Focus on P&L Maximise revenue Minimise cost - No benchmarking - Minimum term - No right of set off - PCG - Service description - Flexibility in delivery - Exclusive licence v ownership - Limit liability 8
  9. 9. TRIAGE Categorising Work Higher-value / strategic Legal Front Door Low value / risk Client Legal External Firms NewLaw Provider Client Business BAU – extended bandwidth complexity 9
  10. 10. MANAGING CONTRACT PERFORMANCE Legal can drive value through better integration with implementation teams • Change Management and Contract Performance Enablement critical Pre-Award Hand-Off Performance Termination Feedback • Performance Playbooks • Contract Management Plans • Informed Re-Negotiations 10
  12. 12. BLENDED SHORING Utilising a blended shoring paradigm that is geographically tailored and fully integrated U.K. Law Department Client U.K. Law Firm Front Office Onshore Commercial Lawyers Optimal balance between • Labour Arbitrage • Talent • Volume South African Offshore Teams COMPLETE INTEGRATION Optimal minimization of expensive U.K. lawyers utilization 12 12
  13. 13. SOUTH AFRICA’S LPO ADVANTAGE     Mature domestic market World-class strengths in financial services and legal services Large experienced pool of legal talent  Large scale English language talent pool with neutral accent Cultural affinity with UK   2. 2 Deep domain skills Costs 30–50% lower than competitive source markets Narrowing cost differential with low-cost locations 3. 3 Significant cost savings 1. 1 Skilled, Englishspeaking talent pool 5. 5 Robust enabling environment 4. 4 First World experience     Attractive investment climate and strong public sector support Rapidly improving telecoms Political and socio-economic stability   First World infrastructure Superior quality of life for expats. EU time zone similarities and ease of access 13
  14. 14. INTEGRATED OPERATIONS Multi-disciplined and Defined Hand-offs Service delivery Operational delivery Offshore team performing operational delivery against playbooks Judgment calls Onshore business facing lawyer, closely integrated with client Highly experienced onshore lawyer, doing judgement calls and governance Highly experienced offshore lawyer, doing QA, judgement calls and governance Offshore Cross Disciplinary Team 14
  15. 15. PROCESS Mapping and Workflow Client Paper DMAIC Define Measure Analyze Control Improve 15
  16. 16. TECHNOLOGY Speed, Quality and Consistency Document Automation ‣ Allows creation of tailored contracts leveraging standardised terms ‣ Speeds up the contracting process Playbooks ‣ Capture preferred and fall back positions Workflow ‣ Improves efficiency Word Extensions ‣ Speed up the document review process ‣ Greater transparency ‣ Drive greater consistency and faster turn-around times. ‣ Find errors and automate common timeconsuming tasks. ‣ Increases consistency 16
  18. 18. PRICING AND VALUE Predictable, Transparent and Risk-sharing Output pricing Value principles ‣ Incentivises innovation and investment ‣ Real fixed fees ‣ Pricing could be based on a fixed charge for a block of work, a unit rate per contract (PxQ) or a combination of fixed and unit rate (PxQ + X pricing). ‣ Service Levels and Services Credits ‣ Charges based on performance against agreed metric, including BTL and ATL value ‣ Risk for areas of high degree of influence Cost per unit Px Q + X PxQ Volume 18
  20. 20. CASE STUDIES The model in use Supplier Customer Brief • • Support data / saas sales team in finance industry to close contracts faster High volume based on client’s paper Brief • • • Support legal team servicing the IT and marketing procurement Varying complexity on client or supplier’s paper Onsite presence Actions Actions • • • Consolidate standard terms and automate production of first draft Implement playbook of pre-authorised fall-back positions Iterate according to data: business value versus risk mitigation • • • Results • • Consistently meet or beat SLA - 30 hours Drastically increase speed to closure Implement intake and triage process Playbooks for various products: risk review, contract support, deal support Onshore and offshore support based on complexity Results • • Reduce number of draft turns Reduce time a contract “with legal” 20
  21. 21. CLOSING THOUGHTS • Understanding Law Department Objectives • Limitations of OldLaw structures • The Power of Providing Systemic Contract Management Support • NewLaw Advantages 21
  22. 22. ABOUT is a UK-regulated law firm that was launched in 2011 by partners from leading firms. We are focused on delivering a better experience and more business value for clients, through a combination of: Pricing certainty: all our transactional work is performed on fixed price or equivalent basis and we do not keep timesheets – we believe we are selling value, not time. Experienced lawyers: all of our lawyers have worked at market-leading US and UK firms. All projects are handled by senior lawyers through every stage. We are used to delivering to the high standards and timeframes expected by multinational clients. Innovation: we use advanced technology and processes to collaborate with clients to improve work product and keep costs down. Chambers: “Since its formation in January 2011, this niche technology firm has established a formidable reputation in the market for its handling of a range of outsourcing work, as well as licensing, data centre work and software agreements”. Legal 500: “Responsive, flexible, and focused on the commercial workability of solutions”. Richard Susskind: “The launch of is an important development – the future is creeping up on us” Legal Industry Pioneers of 2013 22
  23. 23. ABOUT COGNIA LAW Cognia Law is a next-generation legal outsourcing service provider to global corporates and law firms founded with three basic principles in mind: • Provide commercial value to clients in quantifiable terms • Remain technologically forward-thinking; and Why is Cognia Law “next-generation”? “Our Strategy” We are redefining the strategic value proposition of legal outsourcing as something more than myopic cost cutting through offshoring. Our goal is to constantly push for improving efficiency through an optimal balance between automation and rightshoring. • Openly collaborate with the best innovators in the legal sector. “Collaborating with Innovative Technology” Cognia Law recognises that embracing new technology is the key to optimising an outsourcing engagement. We also recognise that remaining on the cutting edge means researching and partnering with disruptive technology players. “Leadership in Contract Management and Due Diligence” Cognia Law’s emphasis is on the next frontier: applying a powerful combination of project management work flows, process automation, search technologies, virtual collaboration, and advanced analytics reporting to construct next-generation contract management and transactional due diligence services. “Leveraging South Africa” South Africa provides the professional resourcing advantages of popular low-cost jurisdictions, like India, coupled with time zone and cultural alignment with European countries, and best-in-class communications skills. 23