This document provides guidance on managing various aspects of a law department, including managing people, relationships, information, planning and processes. It discusses managing lawyers and paralegals, delegation methods, managing relationships with outside counsel and customers, financial management including budgeting, risk management, information management including records retention and e-discovery, and managing goals and objectives using metrics.

1. Law Department Management 110 Managing People Managing Relationships Managing Information Managing Planning and Processes

2. Managing People You - Manage Up, Across, and Down Your Lawyers Your Paralegals

3. Management Foundation - Individual Excellence Legal Knowledge is only part of the goal, in house practice requires more Leadership http://tinyurl.com/NTIH1 Presentation Skills Negotiation Skills (The Power to Persuade) Knowledge of corporate goals Risk Calculus - must be “in front” for others to follow Be part of the team, but keep your independence and integrity intact

4. Managing Lawyers Alignment with corporate goals Setting Expectations The Dreaded Performance Review Balancing Important vs. Urgent Policies, manuals, compliance events Use the bonus plan!

5. Dealing with poor performance The best surprise is …….. Guide, predict, diagnose Don’t wait – early intervention is best problems do not improve with age Be Professional Provide an action plan – not just criticism

6. Who Does the Work? Paralegals and Legal Assistants Delegation Methods Resources

7. Delegation Don’t need to see & review everything Supervision and Delegation Paralegals can do everything except Give legal advice/opinions Appear in court Set fees Establish an attorney-client relationship Empower Paralegals and Legal Assistants Use tools to enable them to take action and make decisions within pre-defined parameters

8. Methods Tiered-Review Policy Establish when matters require attorney review Standard and Form Templates Use technology to your advantage Negotiating Toolkit for Common Provisions Provide fallback provisions and guidance for common situations Training

9. Use of Fallback Provisions EXAMPLE: COMPANY EXCLUDES “AFFILIATES” FROM LICENSEE DEFINITION Option 1 “ Affiliate ” means any property or casualty insurance company (or entity that provides employees or services solely for the benefit of Licensee or a property or casualty insurance company Affiliate in connection with either’s internal business operations) identified on Exhibit A to this Agreement that controls, is controlled by, or shares common control with Licensee, with “control” being defined as having more than a 50% controlling interest. Option 2 “ Affiliate ” means any property or casualty insurance company (or entity that provides employees or services solely for the benefit of Licensee or a property or casualty insurance company Affiliate in connection with either’s internal business operations) identified on Exhibit A to this Agreement that controls, is controlled by, or shares common control with Licensee, with “control” being defined as having more than a 50% controlling interest. Upon notice to Company and subject to Section 5.3.1 of this Agreement, Licensee may add additional Affiliates under this Agreement. Notwithstanding the foregoing, absent Company’s prior written consent, an Affiliate will not include any entity that has an effective agreement with MSB at the time it becomes affiliated with Licensee

10. Resources ABA Model Guidelines - Utilization of Paralegal Services http://tinyurl.com/NTIH6 Customer Contract Review Policy & Procedure (reference materials) Negotiating Toolkit for Key Provisions (reference materials) “ The 4-Hour Work Week”™ Timothy Ferriss

11. Managing Relationships Outside Counsel Community Customers Shareholders Cross functional Teams

12. Outside Counsel Policies, Selection and Engagement Easily Outsourced? Advice/Narrow issue requiring current expertise Recurring matters (subpoena defense, collections) Evaluation and communication Post Mortems Formal Evaluations Resources ACC Value Challenge ACC InfoPaks ABA Ethics Rules

13. Community In house practice world extends beyond your desk Pro Bono support Professional associations Legal – ACC, ABA, SCSGP Other – IACCM, ARMA

14. Cross Functional Teams What is Legal’s Role - Leader or Supporting cast? Internal Investigations; RIF’s; IP Audits; Policymaking; EDRP How to get buy-in for the project “ The first best practice” http://tinyurl.com/NTIH3 Keeping the team on schedule Tracking Progress with Technology MS Sharepoint ; Project Management SW; MS Excel

15. Managing Process Financial Management Budget Process Accounting for Lawyers Risk Management Perspective Information Management

16. Financial Management Using Your Budget to Show Value Size comparisons Value of “insourcing” Managing Outside Expense is Key After employee related costs, outside counsel will typically be the largest % of your budget AND the most controllable by effective management It’s not about you anymore! Challenges of being a Cost Center

17. Budgeting Tools Requests for Proposals RFP’s Retention Guidelines/Engagement Letters/Litigation Policies Require Outside Counsel to Actively Participate in Your Budget Forecasting Treat as partners Hold accountable – cannot exceed provided budget by 10% Bill Other Departments for Time Show Cost Savings/Revenue Additions (requires good presentation skills!)

18. Risk Management How can you make a difference? Credit Risk – Review corporate credit policies Review credit and collection practices manual Standardize escalation letters Know your insurance program Crisis Response Planning and Communication Bonus objectives?

19. Information Management Developing e-File and Hard file systems Adopt a standardized naming procedure 2009-05-19 DOCTYPE PARTY Create and maintain a master file list Develop a taxonomy process Resources: “Establishing Alphabetic, Numeric and Subject Filing Systems” ANSI/ARMA ISBN 1-931786-25-9 List Folders Categories

20. Folder Storage – Electroni c and Hard Copy Email vs. Logical drive? Treat your drive like a file cabinet Folders and subfolders (see sample) Follow the same convention in your email folder system Write Open and Close File Procedures

21. Beyond file names and folders Document management Retention Policy Matter Management Database Tools E-Billing Automation furthers measurement (“Metrics”) by systematically collecting data

22. e-Discovery Reference Model

23. Records Retention and eDiscovery Things you should know Record retention policy Org charts IT backup procedures email, blackberries, voice mail Default settings for file save Custodian of Global Data Map Default Settings for “File Save” What is metadata? Things you should do Build an e-Discovery response team * – legal/IT/HR/Business Std. hold letter/email Focus on what to KEEP Minimize storage of ESI Maximize access to relevant ESI Train employees * http://tinyurl.com/NTIH4

24. Work flow analysis Detailed analysis of process steps Goals - improve cost time or quality A picture is worth ………

25. Flow Charts and Diagrams Expose gaps in understanding Highlight duplication of effort Highlight steps that can run concurrently Suggest tasks that could be delegated Identify hidden costs Clarify bottlenecks Provide a map for automation/technology

26. Examples and Resources Policy Approval Process Contract Approval Process SOX Reviews MS Excel Smart Draw Visio

27. Managing Goals and Objectives Budgeting vs. Planning Alignment with Corporate Objectives What does this mean for Lawyers? Benchmarking and Metrics If you don’t measure results, how do you know its working? Strategic Planning

28. Why are metrics important? Guiding strategy, and informing tactics Quantify your support of corporate goals Set department standards Improve costs, outcomes Present information the way your clients will understand it

29. Smart Metrics Specific Measurable Actionable Relevant Timely

30. Metrics – A time for every purpose Start at the beginning -collect reliable data! Set review periods Plan for 2 or more years Faster than the speed of light

31. Examples of Metrics Annual files opened/closed Total Legal Expense Inside/Outside Total SGA Cost per attorney Mix of cases (%) by subject matter Employment cases by Business Unit Resources: www.altmanweil.com www.hildebrandt.com

32. Metrics Comfort food or Soup of the day? FEEDING THE MONSTER