Measuring value is often seen as a challenging process for the in-house legal team. We will consider some practical approaches that will help you to clarify objectives, improve performance as well as measure value.

1. Metrics for in-house teams
16 June 2016
Stephen Hopkins
Head of Global Client Development

2. Eversheds LLP | 17/06/2016 |
Stephen Hopkins
Head of Global Client Development
stephenhopkins@eversheds.com
Stephen joined Eversheds in 1988 and became a partner in 1991 specialising in restructuring, banking, private
equity and corporate work. In 2007 he became client partner for the ground breaking Tyco relationship, which
was renewed in 2014 taking it to over a decade of one of the most innovative legal partnerships in the world.
Under the latest contract, legal advice given by Eversheds anywhere in Europe, Middle East or Africa cannot
exceed a single page, if it does Eversheds will not be entitled to payment for such advice.
Having experience of managing extensive international relationships, Stephen was appointed Head of
International in 2009 overseeing the development phase of Eversheds from a nascent international firm into a
global player. Stephen is now heading the firms commitment to the delivery of quality services to multinational
corporates. The collation, analysis and use of global management information on legal spend is unique to
Eversheds. This has been adopted by many Eversheds clients helping them to control and reduce their external
spend and to deepening relationships with the firm at the same time.
Stephen was shortlisted in the recent Financial Times European Legal Innovation Awards as Legal Innovator of
the year and last year was honoured as one of the top 50 innovators in law in the last 50 years by the American
Lawyer magazine. Stephen picked up his trophy at an awards ceremony in New York City and was named in the
category "Business of Law" for conceiving the award-winning Global Account Management System (GAMS). He
was honoured alongside peers including Martin Lipton (Wachtell, Lipton, Rosen & Katz), Larry Sonsini (Wilson,
Sonsini, Goodrich & Roasti) and Hillary Rodham Clinton.
Stephen was awarded the firm wide award in Asia for Visionary Law firm of the year 2016 and also, the 2015
Client Choice award for UK corporate, an award nominated and voted purely by in-house Counsel.

3. Eversheds LLP | 17/06/2016 |
− Management now demands them
− Surveys can now provide them
− Industry groups can now support them
− Technology can now enable them
Benchmarking Metrics: Why now?

4. 4
Standard High
Significance
• Minimal impact to business
• Limited dollar exposure (as a % of
Revenues)
• Limited influence on future business
policies and controls
• Little to no media/brand exposure
• No executive leadership named in Matter
• Frequent and Routine in nature
• High number of individuals affected/involved
• High Dollar exposure (as a % of Revenues)
• Strong influence on future business policies
and controls
• Extensive Media/Brand Exposure
• Executive Leadership named in Matter
• ”Bet the Company” Litigation
Complexity
• Limited parties and variables
• Single-district or jurisdiction
• Non government or agency related
dispute
• Limited requirement for specific
expertise/timekeepers
• Limited to no third party experts required
• Healthy volume of similar matters in legal
portfolio
• Multiple parties and variables involved
• Multi-district or class action litigation
• Government-agency related investigation or
lawsuit
• Very specific legal expertise required
(partner level)
• Required involvement of field-related experts
• Limited volume of similar matters in portfolio
Matter Significance & Complexity

5. 5
Company‘s Core
Litigation
30%
Complex Litigations
50%
Advice & Counsel
>85%
Standard Filings
Alternative Fees
Company’s Core
Services
30%
Complex Transactions
50%
Common / Basic Work:
Alternative Fees
Standard Filings
Alternative Fees
Company’s Core
Transactions
30%
Complexity
Risk/Impact
1. Assign Partners to
critical work and advice
2. Target some partner
engagement on your
organisation’s every-day
work so expertise
remains consistent
3. Standard work should be
moved to Alternative
Fees for mutual benefit
Firm Usage: Partner Leverage Targets

6. Eversheds LLP | 17/06/2016 |
1. Spend to Budget
2. Staff Workload Metrics
3. Spend By Matter Type and Business Unit
4. Outside Counsel Evaluations
5. Outside and Inside Spending as a Percentage of Company
Revenue
6. Invoice Savings
7. Track and Benchmark Timekeeper Rate Increases
8. Litigation Exposure Over Time
9. Internal Trainings vs. Ethics Complaints
10. Lessons Learned by Matter
Thompson Reuters/ ACC 2013 best practice paper
Top 10 metrics your team should be tracking

7. Eversheds LLP | 17/06/2016 |
− Total Legal spend % of Revenue
− Internal legal spend % of Revenue
− Outside Counsel Spend % of Revenue
− Spending per Lawyer
− Internal vs External Mix
Core Legal Department Metrics: Spending
Benchmarking

8. Eversheds LLP | 17/06/2016 |
− Number of Law Dept Staff
• Per £B in Revenue
• Per 1,000 Employees
− Number of Lawyers
• Per £B in Revenue
• Per 1,000 Employees
− Resource Mix
• Legal Assistants/paralegals per Lawyer
• Secretaries per Lawyer
Core Legal Department Metrics: Staffing
Benchmarking

9. Eversheds LLP | 17/06/2016 |
− Budget vs Actual
• Department
• Matter Level
− Spending by:
• Firm/Level
• Practice Group/Matter Type
• Region/State/County
− Rate Analysis
− Spend on AFAs
Financials
Benchmarking

10. Eversheds LLP | 17/06/2016 |
− Request to Assignment
− Workload Volume and Value
− Average Days to Signature
− Time by Task
− Time by Contract Value
Benchmarking
Timescales

11. 11
Criteria Score
The law firm specializes in legal areas of need and delivers resources aligned to projects' expertise
requirements.
The attorneys I worked with had a thorough understanding of NetApp’s business needs and goals.
The attorneys I worked with were very accessible to me by phone and email. They promptly responded to me
when I reached out to them and took time to meet with me as needed.
Lead attorneys demonstrated strong project management skills, delivering project components on a
competitive timeline.
The attorneys I worked with demonstrated creativity in our work together. They were able to help develop
new theories for the project.
Projects were completed at or within 5% of the anticipated, proposed budget. Budgets were accurate
representations of the amount of work done. The law firm complied with applicable billing guidelines.
The attorneys I worked with reached out to me with questions. They anticipated and resolved issues, and
demonstrated that they valued my time.
The attorneys I worked with were able to communicate clearly and concisely the status of and issues with
projects.
The attorneys I worked with treated me like a valued team member. I felt that I could trust them with
assigned projects.
I was impressed with the quality and presentation of work produced by the attorneys that I worked with.
The law firm delivers outcomes on matters that meet and/or exceed expectations.
I would like to work with this law firm again.
Qualitative Review

12. Eversheds LLP | 17/06/2016 |
− E billing
− Manual
− Law firms
− IT technology
− Industry benchmarks
Capturing the data
The challenge

13. Eversheds LLP | 17/06/2016 |
− Is it worth doing?
− Budgeting and control?
− Metrics with consequences
Analysis and forecasting

14. Eversheds LLP | 17/06/2016 |
Tyco - 2015/16 YTD
EMEA Fees by Entity - $
Matter > Country
Fire Protection
Products
Life Safety
Products Tyco Corporate
I&S Continental
Europe Growth Markets I&S UK/I Safety Products I&S ROW Grand Total
Austria 3,122 12,684 15,806
Belgium 7,946 22,704 30,650
Czech Republic 47,350 47,350
Egypt 2,162 2,162
Finland 4,196 4,196
France 45,313 4,297 125,487 1,031 176,128
Germany 68,584 93,889 162,473
Hungary 1,459 1,459
Ireland 5,180 5,180
Israel 18,436 18,436
Italy 502 46,329 12,728 59,559
Italy - secondment 4,089 37,488 17,508 59,086
Kazakhstan 14,500 14,500
Multiple Countries - Domestic & foreign 7,192 2,123 3,208 12,524
Netherlands 28,470 8,582 18,203 55,255
Norway 8,631 225 8,856
Oman 340 340
Poland 4,261 4,261
Portugal 2,155 2,155
Qatar 7,518 7,518
Romania 800 800
Russia 875 159 1,034
South Africa 221,731 4,592 226,323
Spain 5,296 52,293 2,029 59,618
Sweden 6,716 6,716
Switzerland 7,791 7,791
United Arab Emirates 1,551 2,896 4,447
United Kingdom 20,834 9,722 310,836 4,605 204,488 19,670 570,154
United Kingdom - Secondment (BF) 24,457 24,457
Grand Total 208,570 31,053 338,425 478,545 221,731 243,445 62,873 4,592 1,589,235

15. Eversheds LLP | 17/06/2016 |
Capturing Data

16. Eversheds LLP | 17/06/2016 |
Capturing Data

17. Eversheds LLP | 17/06/2016 |
− Benchmarking Roundtable meetings CLOC Session Survey results
will be published to our LinkedIn page
− Benchmarking Group and on our HBR Insights page
− You can download the Survey Report from
www.blicksteingroup.com
− ACC Leading Practices in Law Department Metrics: Company Best
Practices
Further reading and research

18. Questions?

19. eversheds.com
©2016 Eversheds LLP
Eversheds LLP is a limited liability partnership
Stephen Hopkins
stephenhopkins@eversheds.com