Connie Brenton, NetAppDavid Cunningham, Winston & Strawn LLPJeffrey H. Franke, Yahoo, Inc.Gregory Kaple, Kaiser PermanenteJeff Schwarz, Polsinelli PC

SHARING PRACTICE METRICS FOR LAW FIRMS AND LEGAL DEPARTMENTS, NOW AND IN 2020

Tuesday, September 11:30 – 2:30 p.m.

IN SEPARATE WORLDS

Efficiency vs. ProfitabilityLaw Departments Law Firms

MIRROR IMAGES

Efficiency = Profitability

LEGAL ECOSYSTEM

• Different People at the Table– CIO– CFO– CMO

TIPPING POINT

• The tipping point is the critical point in an evolving situation that leads to a new and irreversible development.

Law Department Law Firm1 Total Internal & External Spend 1 Matter Budget

2 Spend vs. Budget 2 Profitability

3 Staffing / Resource Utilization 3 Billable Hours / Utilization

4 Vendor Performance 4 Peer Benchmarking

5 Savings 5 Performance Quality / Client Results

6 Matter Time to Completion 6 Client Satisfaction

7 Performance Quality 7 Firm Citizenship

8 Training

WHAT WE’RE MEASURING

USE OF ANALYTICS

Law Department Law Firm1 Understanding spend to minimize

spend (opportunities to save)1 Understanding partner / firm

performance

2 Benchmarking against industry rates

2 Benchmarking against industry rates

3 Increase efficiencies 3 Increasing confidence and accuracyof budgets

WHAT’S ON THE HORIZON

• Napa Conference – Standards for the industry

• CLOC• CIO-CLOC

WHAT WE MEASURE

IN-HOUSE DEPARTMENT METRICS

Total Dept and Practice Area

Spend

Billed Hours, Fixed Fees,

Staffing Ratios

E-Discovery Review

Efficiency & Analytics

Spend by FirmVendor or

Service Provider Performance

Industry Benchmarks

LAW FIRM METRICS

Matter Budget Partner Performance Client Feedback

Client Wins Industry Benchmarks

EVOLUTION OF ANALYTICS

• More and Better Data• Getting data clean• Leveraging Technology (Sky, Lex Machina, etc.)• New Technologies• Leveraging Analytics Providers and Consultants• New Audiences (GC, CFO, CEO, COO, Internal Biz Clients etc.)

KPI & DASHBOARDS & QBR

DELIVERING THE MESSAGE

• Dashboards• QBR’s• Operations Reviews• Performance Reviews• Budget Proposals and Reviews• Vendor Selection

DASHBOARD METRIC CATEGORIES

Legal Spend

Contract Management

Training

Instant NDA

Electronic Signatures

Department Metrics (Headcount, Pro Bono, etc.)

LAW FIRM PERFORMANCE SUMMARY

Quantitative Portfolio Analysis

Category Performance Details Score

Staffing Models• Partner, associates, paralegal mix 2

Staffing Efficiency• Timekeepers per matter• Right-sourcing 1

Fees/Costs • Hourly and fixed fees 5

Billing Compliance • Adherence to billing guidelines 3

Qualitative Analysis (27 Respondents)

Category Attorneys & Engineers

Subject Matter Expertise 3.5Business Alignment 4Responsiveness/ Accessibility 3.5Project Management 4Creativity 2.5Budgeting Accuracy 3.5Proactive Execution 3Communication 1Partnership/ Trustworthiness 3Quality and Presentation 3Results/ Outcomes 3.5

Response Score

Strongly Disagree 1.0

Disagree 2.0

Neither Agree nor Disagree

3.0

Agree 4.0

Strongly Agree 5.0

SPEND DASHBOARD

KPI DASHBOARD

MATTER BUDGETING

MATTER ACTIVITY DASHBOARD

THANK YOU