NewLaw Paradigm: Contract Management

6 February 2014

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THE PRESENTERS

Jason McQuillenHead of Managed Legal Services at radiant.lawExperienced commercial contracts lawyer who has worked extensively in-house as well as in private practice. Leading the charge at radiant.law to invent how to support portfolios of contracts in smarter ways.

David R. ChamberlinHead of Legal Services at Cognia LawFormer 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.

EXECUTIVE SUMMARY

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• 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

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PART ONELEGAL EXECUTIVE CHALLENGE AND END-TO-END SUPPORT

STRATEGIC OBJECTIVES

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Demonstrating Value

Legal

Sales

Business

Finance

Procurement

Skilled lawyer

Reducing cost of delivery (BTL)

Reduce risk / loss of margin

Contribute to value of service (ATL)

Gatekeeper Position Evolving Expectations

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Knowledge

Management

Content Manage

ment

Performance

Management

Legal Process Manage

ment

TAPPING INTO THE ECOSYSTEMNewLaw is structured to provide expertise and systemic service support into core functional contract management areas

Traditional Law Firm: High-End Ad Hoc Advice

NewLaw

Design

Production

Triage

Review and negotiation

Execution and

storage

Ongoing manage

ment

Continuous improvem

ent

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Examples• Legal Spend• Risk

Management• Efficiency/Speed

Examples• Self-Service• ATL Value • Remedies• Analytics

CONTRACT LIFE-CYCLEProviding Value At Each Phase

Below-the-Line

Above-the-Line

NewLaw

DESIGN

Maximise revenue

- No benchmarking- Minimum term- No right of set off- PCG

Minimise cost

- Service description- Flexibility in delivery- Exclusive licence v ownership- Limit liability

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Focus on P&L

TRIAGE

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Categorising Work

Legal Front Door

Client LegalNewLawProvider

ClientBusiness

External Firms

Higher-value / strategic Low value /

risk

complexity

BAU – extended bandwidth

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Hand-

Off

Performance

Termination

• Change Management and Contract Performance Enablement critical

Pre-Award

Feedback

• Performance Playbooks

• Contract Management Plans

• Informed Re-Negotiations

MANAGING CONTRACT PERFORMANCELegal can drive value through better integration with implementation teams

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PART TWORESOURCING, PROCESS, AND TECHNOLOGY

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BLENDED SHORINGUtilising a blended shoring paradigm that is geographically tailored and fully integrated

Optimal balance between• Labour Arbitrage• Talent• Volume

U.K. Law Department Client

U.K. Law Firm Front Office

OnshoreCommercial Lawyers

South African Offshore Teams

Optimal minimization ofexpensive U.K. lawyers utilization

CO

MPLE

TE

INTEG

RATIO

N

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SOUTH AFRICA’S LPO ADVANTAGE

3. Significant cost savings

4. First World experience

5. Robust enabling environment

2. Deep domain skills

1. Skilled, English-speaking talent pool

Large scale English language talent pool with neutral accent

Cultural affinity with UK Costs 30–50% lower than competitive source markets

Narrowing cost differential with low-cost locations

First World infrastructure Superior quality of life for

expats. EU time zone similarities

and ease of access

Attractive investment climate and strong public sector support

Rapidly improving telecoms Political and socio-economic

stability

Mature domestic market

World-class strengths in financial services and legal services

Large experienced pool of legal talent

1

2 3

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INTEGRATED OPERATIONS

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Operational delivery

Service delivery

Jud

gm

en

t calls

Onshore business facing lawyer, closely integrated with client

Highly experienced onshore lawyer, doing judgement calls and governance

Offshore team performing

operational delivery against playbooks

Offshore Cross Disciplinary Team

Highly experienced offshore lawyer, doing QA, judgement calls and governance

Multi-disciplined and Defined Hand-offs

PROCESS

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Mapping and Workflow

DMAIC

DefineMeasure

Analyze

Control

Improve

Client Paper

TECHNOLOGY

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Speed, Quality and Consistency

Document Automation

‣ Allows creation of tailored contracts leveraging standardised terms

‣ Speeds up the contracting process

‣ Increases consistency

Playbooks

‣ Capture preferred and fall back positions

‣ Drive greater consistency and faster turn-around times.

Workflow

‣ Speed up the document review process

‣ Find errors and automate common time-consuming tasks.

Word Extensions

‣ Improves efficiency

‣ Greater transparency

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PART THREEPRICING AND VALUE

PRICING AND VALUE

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Predictable, Transparent and Risk-sharing

Output pricing Value principles

‣ Incentivises innovation and investment

‣ 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).

‣ Real fixed fees

‣ Service Levels and Services Credits

‣ Charges based on performance against agreed metric, including BTL and ATL value

‣ Risk for areas of high degree of influenceCost per unit

Volume

P x Q

Px Q + X

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PART FOURCASE STUDIES AND CLOSING THOUGHTS

CASE STUDIES

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The model in use

Supplier CustomerBrief

• Support data / saas sales team in finance industry to close contracts faster

• High volume based on client’s paper

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

Brief

• Support legal team servicing the IT and marketing procurement

• Varying complexity on client or supplier’s paper

• Onsite presence

Actions

• 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”

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• Understanding Law Department Objectives

• Limitations of OldLaw structures

• The Power of Providing Systemic Contract Management Support

• NewLaw Advantages

CLOSING THOUGHTS

ABOUT radiant.law

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radiant.law 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 radiant.law is an important development – the future is creeping up on us”

Legal Industry Pioneers of 2013

ABOUT COGNIA LAW

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Why is Cognia Law “next-generation”?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

• Openly collaborate with the best innovators in the legal sector.

“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 right-shoring.

“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.