Transcript A “Virtual Law Firm” or “VLF”

The “Virtual” Law Firm
Creating Efficiencies, Improving Results
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Today’s Topics
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What Is A VLF?
Why Are Companies Forming VLFs?
Benefits & Challenges
Steps For Developing VLFs
Keys For Success
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A “Virtual Law Firm” or “VLF” Is:
• A collaboration
• Between (1) in-house counsel and (2) their
preferred outside counsel, irrespective of law
firm boundaries
• To simultaneously enhance (1) the quality of
legal services provided and (2) improve the
bottom lines of both in-house legal departments
and the law firms with whom they work.
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Case Study: Toyota
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Benefits
Consistency
Collaboration
Subject Matter Experts
Proactivity
Commitment
Value
Results
Cost Savings
Trust
Management of Legal Spend
Leverage-ability
Efficiency
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Challenges
Time
Relationships
Communication
Fairness
Selection
Quantifying Results
Management
Feedback
Stakeholder Involvement
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Step One:
Do Your Homework
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Step Two:
Establish Goals
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Step 3:
Involve Key Stakeholders
(Both Inside And Outside Of Legal)
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Step 4:
Develop And Disseminate Competition
Framework
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What CLOs of S&P 500 Companies Look
For In A Preferred Provider
CLOs report:
• Cost not as important as fit and past experience
• “[N]oted for results and stood out from others”
• “[G]ood personalities and who was efficient”
• “[F]irms with whom [we] already have relationships”
• “[T]he way they do business”
• “[T]he type of people they are”
• “[S]ame…work ethic”
• “[G]ood synergy between us”
-John C. Coates, Michelle M. DeStefano, Ashish Nanda and David B.
Wilkins, Hiring Teams, Firms and Lawyers: Evidence of the Evolving
Relationships in the Corporate Legal Market, 36 Law & Soc. Inquiry 99
(Fall, 2011) at 1011 (2006-07 Interview and Survey Data from 166
CLOs of S&P 500 Companies)
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Step 5:
Select Preferred Providers
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Step 6:
Team Build
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Step 8:
Create formal
communication channels
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Step 9:
Measure Performance,
(Including Financial And
Other Important Metrics)
And Immediately Address
Concerns
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The Relationship
Begin With A Manageable Section Of
The Law Department’s Work
Recognize The Portfolio Of Work May
Be Dynamic
Communication, Communication,
Communication
Firm /Company Culture Compatibility
Support The Outside Lawyers You Have
Selected
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Loeb LLP, Alston & Bird LLP and Toyota North America. It does not constitute, and should not
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