ELM Solutions eBook

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COMPLEX PROBLEMS OF THE MODERN LEGAL DEPARTMENT DEMAND AN

INTEGRATED APPROACH

KEY TAKEAWAYS

10minute

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Leaders of corporate legal, compliance, and claims organizations and law firms face more complex demands and expanding roles, which call for more holistic technology solutions

Single issue-focused technology solutions do not sufficiently address such complex issues, and siloed solutions can add complexity

An integrated Enterprise Legal Management ecosystem can simplify, improve collaboration, increase visibility, and enable more proactive and strategic management

TABLE OF CONTENTS

INTRODUCTION

THE EVOLUTION TO ENTERPRISE LEGAL MANAGEMENT

Enterprise Legal Management (ELM) terminology has emerged relatively recently, but it encompasses long-established business processes and technologies that are familiar to professionals in any corporate legal, claims litigation, or compliance department.

Enterprise Legal Management comprises an ecosystem that:› Is inclusive of all tools, data, and information used by the legal and compliance functions to achieve their goals.› Breaks down operational and data silos inherent in task-specific solutions.› Provides a unified, holistic view into the processes, status, and performance of a corporation’s legal, risk, and compliance work.

INTRODUCTION / THE EVOLUTION TO ENTERPRISE LEGAL MANAGEMENT

INTRODUCTION / THE EVOLUTION TO ENTERPRISE LEGAL MANAGEMENT

ELM PROTECTS THE COMPANY MORE EFFECTIVELY THAN A COLLECTION OF TASK-SPECIFIC TOOLS

By consolidating and centrally managing and automating all legal, risk, and compliance data and processes.

CHAPTER 1TODAY’S CHALLENGES

CHAPTER 1 / TODAY’S CHALLENGES

Chief LegalOfficers

ChiefInformationOfficerin the

center

Chief Claims

OfficersChief

Risk

Office

rs

Chief ComplianceOfficers

Cost, EfficiencyRegulatory Change

RiskUnpredictability

ComplexityBusiness Value

Policies

GlobalizationData Overload

Information GapsLoss Ratios

SecurityData Privacy

MANAGING A CORPORATE LAW DEPARTMENT, CLAIMS DEPARTMENT, OR COMPLIANCE ORGANIZATION GROWS MORE COMPLEX EVERY YEAR.


CHALLENGE: CORPORATE LEGAL DEPARTMENTS ARE UNDER PRESSURE TO OPERATE MORE EFFICIENTLY AND REDUCE LEGAL SPEND.

‘07-’08 ‘09-’10 ‘11-’12 ‘13-’14

Average Law Firm Rates

Who was polled: 55 Chief Litigation Officers of Fortune 1000 companiesSource: Consero Group. Corporate Litigation Data Survey. 12 Jan. 2015

Source: ELM Solutions. 2014 Real Rate Report.

At the same time, average law firm rates have gone up every year that has been

analyzed in the LegalVIEW database (2007-2013), even during the global

recession in 2008.

72% experienced increased pressure over the past year to become more efficient

and better manage legal spend.


Alternative or fixed fee arrangements (AFAs) with law firms are in the top three of most frequently used methods used by CLOs to

control costs. 37.8% say the biggest impediment to using AFAs is the unpredictable nature of matter activity.

Barriers to using AFAs hinder effective cost management.

Who was polled: 186 Chief Legal Officers (CLOs)Source: Altman Weil, Inc. 2014 Chief Legal Officer Survey. Nov. 2014.

Who was polled: Legal department operations managersSource: InsideCounsel and Blickstein Group. 7th Annual Law Department Operations Survey. Jan. 2015.

AND CORPORATIONS ARE LOOKING FOR CREATIVE WAYS TO LOWER COSTS

TOP 3

AFAs

37.8%0+0+0+38

CHALLENGE: IT IS BECOMING MORE DIFFICULT FOR CORPORATIONS TO MANAGE RISK AND REGULATORY COMPLIANCE.

69+74+7717+45FORCES CREATING THE BIGGEST CHALLENGES:

UNCERTAINTY ABOUT APPROACHES TO MANAGING RISK:

REGULATORY COMPLEXTYDATA SECURITY & PRIVACY

GOVERNMENT POLICY CHANGES (as significant a challenge as “cost pressures”)

UNSURE WHETHER CURRENT APPROACHES EFFECTIVELY MANAGE CORRUPTION AND BRIBERY RISK

BELIEVE ORGANIZATION IS VERY WELL PREPARED FOR RESPONDING TO DATA BREACHES.


77%

45%74%

69% 17%

Who was polled: 1300 global chief audit executives, senior management & board members Source: PWC. 2015 State of the Internal Audit Profession Study. March 2015.

Who was polled: 254 corporate counsel.Source: Grant Thornton LLP. 2015 Corporate General Counsel Survey. 19 May 2015.


“Organizations are retaining more data. As a result, the typical amount of data involved in litigation is growing. As one judge noted, ‘Counsel used to reference ESI* by the equivalent in number of pages - now they discuss terabytes.’”

– Exterro Federal Judges Survey

FOR EXAMPLE, IT HAS BEEN ESTIMATED THAT THE “VOLUME OF BUSINESS DATA WORLDWIDE DOUBLES EVERY 1.2 YEARS.”

CHALLENGE: THE VOLUME OF BUSINESS DATA BEING GENERATED IS GROWING AT AN ACCELERATING RATE.

Source: “Ebay study: How to build trust and improve the shopping experience.” W.P. Carey School of Business. Arizona State University, 8 May 2012.

Source: Exterro. “Federal Judges Survey – E-Discovery Best Practices and Trends.” April 2015.


92% report that the number of international law firms they work

with will stay the same or increase in the next year.

84.5% in those markets, use local law firms solely or in combina-tion of with legal department

lawyers assigned to positions “on the ground”

A SIGNIFICANT AMOUNT OF WORK IS NOW PERFORMED BY

INTERNATIONAL VENDORS.

75% REPORT THAT THEIR COMPANIES ARE ENGAGED IN

BUSINESS IN EMERGING MARKETS.

Who was polled: 127 corporate general counsel globallySource: Global Legal Post & TerraLex. The General Counsel Excellence Report 2015.

Who was polled: 55 Chief Litigation Officers of Fortune 1000 companiesSource: Consero Group. Corporate Litigation Data Survey. 12 Jan. 2015

“As the LPO* market becomes more mature, corporate legal departments are starting to move outsourcing beyond translation-based legal processes to judgment-based processes, such as Contract Drafting, which is expected to grow by 18%.”

– Deloitte 2014 Global Outsourcing and Insourcing Survey

AND OUTSOURCING IS EXPANDING.

Source: Deloitte. “Deloitte’s 2014 Global Outsourcing and Insourcing Survey.” Deloitte Development LLC, December 2014.

CHALLENGE: CORPORATE LEGAL DEPARTMENTS MUST SUPPORT A GLOBAL INTERNAL CLIENT BASE.85+0+750+0+92 85%

75%92%


CHALLENGE: LEADERS WITH EXPANDING ROLES ARE LOOKING FOR BROADER SOLUTIONS.

ACCORDING TO GENERAL COUNSEL (GC), THE BEST DESCRIPTOR OF THE THEIR FUNCTION IN THE COMPANY IS:A STAKEHOLDER IN BUSINESS DECISIONS

MANAGING THE LEGAL DEPARTMENT

THE BAROMETER OF THE BUSINESS (AN EARLY WARNING SYSTEM)

THE CONSCIENCE OF THE BUSINESS (WRONGDOING)

47.5%

32.3%

11.1%

9.1%


60+4096+4 96% RATE ETHICS AND COMPLIANCE AS

IMPORTANT PRIORITY FOR THE COMING YEAR.

Who was polled: 1289 CLOs worldwide.Source: Association of Corporate Counsel. ACC Chief Legal Officers 2015 Survey. Jan. 2015.

Topping the list of issues that GC are most concerned about over

the next 18 months:60% Regulation and compliance

CHIEF LEGAL OFFICERS (CLOS) COMMONLY HAVE RESPONSIBILITY FOR ENSURING REGULATORY COMPLIANCE AS WELL AS MANAGING THE LEGAL DEPARTMENT AND REDUCING LEGAL COSTS.


CHAPTER 2TECHNOLOGY RESPONDS

CHAPTER 2 / TECHNOLOGY RESPONDS

AN ABUNDANCE OF TECHNOLOGY SOLUTIONS HAVE EMERGED TO OVERCOME INDIVIDUAL CHALLENGES — ONE AT A TIME.

REGULATORY INTELLIGENCE

POLICY MANAGEMENTeDISCOVERY CONTRACT MANAGEMENTCOMPLIANCE MANAGEMENT

IP MANAGEMENTLEGAL ANALYTICS LEARNING MANAGEMENT

eBILLING SERVICE OF PROCESSDOCKETING / CALENDARING LEGAL PROJECT MANAGEMENT

CLAIMS MANAGEMENT INCIDENT REPORTINGRECORDS MANAGEMENT TRADEMARK PROTECTION

DOCUMENT MANAGEMENT LEGAL HOLDSRISK MANAGEMENT

MATTER MANAGEMENT


ADVANCES IN TECHNOLOGY PRESENT OPPORTUNITIES.

The proliferation of technology solutions has allowed enterprise organizations to more closely monitor and better manage their legal, claims defense, and compli-ance efforts and mitigate risk. For example:

› Matter and spend management solutions provide valuable data about trends in legal case costs and analytics to compare value of different outside counsel firms.› Hosted and SaaS solutions allow colleagues to collaborate globally, sharing data securely from any geographic location.› 24x7 access means that the end of a business day in one region doesn’t stop the flow of information or the effort to meet key deliverables.› Rules-based automation and validation leads to greater staff efficiency and pro ductivity and ensures data integrity.

“Businesses who naturally have data at the core of their operation (like law firms), will experience volume, velocity, variety and veracity in their data …, the skill is how to handle and interpret that data to provide you with relevant and meaningful information.”

– Brian Curtis, Advanced LegalSource: Curtis, Brian. “What’s So Big About Data Anyway?” Advanced Legal. Advanced Computer Software Group, 6 July 2015.


THE FLIP SIDE: TECHNOLOGY CAN ALSO INTRODUCE COMPLEXITY.

When implemented separately, issue-specific tools offer minimal sharing of data and documents and generate disconnected workflows.

› Data distributed across multiple solutions is not structured to provide timely answers to complex questions. › Siloed data does not support a proactive, strategic approach to legal and compliance management.› Collaboration and version control are problematic when documents are distributed among multiple systems.› When a global team uses an array of solutions, consistent enforcement of best practices is challenging.

28% OF COMPANIES HAVE FULLY OR SUBSTANTIALLY INTEGRATED GRC PROCESSES

AND TECHNOLOGY ACROSS THE ORGANIZATION.

72% HAVE MINIMAL INTEGRATION OR LEAVE SEPARATE DEPARTMENTS TO DEFINE THEIR OWN PROCESSES AND TECHNOLOGY WITH

LITTLE TO NO CONSISTENCY OR INTEGRATION. Source: OCEG. 2015 GRC Metrics Survey.

28+72

CHAPTER 3 / BUILDING AN ELM ECOSYSTEM

CHAPTER 3BUILDING AN ELM ECOSYSTEM

ELM IS ABOUT BUILDING AN ECOSYSTEM THAT REDUCES COMPLEXITY AND ENABLES A MORE HOLISTIC APPROACH.

An ELM ecosystem enables previously disconnected legal, compliance, and related solutions to be integrated to deliver a comprehensive, connected set of best-in-class software and services.

AN ELM ECOSYSTEM CAN BE TAILORED TO EACH INDIVIDUAL ORGANIZATION AND INCLUDES CERTAIN ESSENTIAL ELEMENTS.

› A common technology platform that enables the connection of disparate systems. › Integration of applications that support legal, risk, and compliance functions as well as the broader enterprise.› Capabilities that enable organizations and their partners to configure and extend the solution to meet emerging business needs.› Partnerships between corporate legal, compliance, and claims departments; law firms and other service providers; technology, software, and professional service vendors. › Consolidation of data across software tools, departments, geographies, as well as law firms and other external business partners.› Robust business intelligence tools for analysis.

MANAGING COMPLEXITY DOESN’T NEED TO BE COMPLEX FOR THE USER.

An ELM ecosystem connects and integrates systems used by the legal, compliance, and risk functions, as well as the broader enterprise. In many cases, clients can continue to leverage their preferred issue-specific tools in a newly integrated environment.

An ELM ecosystem provides a unified user interface across systems and data and enables workflows that support best practices across departments and processes. It incorporates data from law firms and other external business partners. Legal and compliance leaders no longer need to consult a battery of isolated applications to understand overall status and performance.

Consolidate all essential legal,

risk, compliance, and business

processes

Enable business intelligence to provide more

holistic view of legal and

compliance operations and enterprise-wide

risk

Integrate systems and data sources using advanced

platform technology


ELM

CORPORATIONS ARE DRIVING THE EVOLUTION TO ELM.

General Counsel, claims department managers, and compliance organizations have already begun implementing a platform approach and reaping the rewards. › Those responsible for the legal and compliance functions of large corporations are asking for insights that support better, more forward-looking decision-making.› They want their technology vendors to bring the data together for a clear and holistic view into their operations and performance.› Leaders that take proactive approach are no longer simply managing Legal and Compliance; they are engaged in active risk mitigation to avoid legal issues before they occur.


“Prior to our implementation [here use “…” in place of “of Passport”], our visibility into spend was limited to legal matters and this data was difficult to consolidate across multiple business units and global regions. Our ability to now also capture and report on spend data for compliance-related incidents has produced very real and tangible value for MMC.”

– Marsh & McLennan Companies[Note MMC quote is from Oct 2013 news release: Datacert Receives 2013 Value Award for Legal GRC]

CHAPTER 4 / THE VALUE OF ENTERPRISE LEGAL MANAGEMENT

CHAPTER 4THE VALUE OF ENTERPRISE LEGAL MANAGEMENT

Simplifies the user experience and

increases efficiency and data integrity

Improves collaboration

among internal

departments and functions, with

external business partners,

and across geographies

Provides greater visibility and

insight into legal and risk-related data and costs

Delivers actionable insights that

support better decision-making

for more strategic, holistic, and

proactive management of legal, risk, and

compliance

A WELL-STRUCTURED ELM ECOSYSTEM:

ELM IS THE FUTURE OF LEGAL AND COMPLIANCE MANAGEMENT BECAUSE IT BETTER POSITIONS CORPORATE LEADERS TO MANAGE INCREASING COMPLEXITY AND DELIVER VALUE ACROSS THE ENTERPRISE.

CHAPTER 4 / THE VALUE OF ENTERPRISE LEGAL MANAGEMENT

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