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Post 13

Compensation, Conversation and Collaboration

Week 13. Each week via the In-House ACCess blog, follow the promise and pitfalls of forming a new value-based client-firm relationship. ACC Value Challenge steering committee member Ken Grady, General Counsel and Secretary of Wolverine World Wide, offered to profile his selection and start-up process of launching a trademark portfolio management engagement with law firm Seyfarth Shaw. Ken's co-blogger is Lisa Damon, a member of Seyfarth's Executive Committee and leader of the firm's efforts to incorporate Lean Six Sigma into its business. The voice, views and stories expressed by the authors below are their own and not ACC’s. To catch up on the story so far, click here.

The client side

From Ken:

We structured the value fee for 2011 by borrowing from a common executive compensation arrangement. First, we established the base fee for 2011 (think base salary). Seyfarth used raw data that Wolverine supplied (hours, number and type of matters) to calculate estimates assuming the work was done by (1) a traditional large firm (higher rates), (2) the current firm, and (3) Seyfarth. I also calculated an estimate. My calculation and Seyfarth’s calculation of the Seyfarth fee agreed within about 7%, and we decided to use my number (I had the edge given my insider knowledge).

Next, we set up a bonus structure. The bonus recognizes savings based on systemic changes. This is a key point. We want repeatable changes that reduce the time to do portfolio work. That means we need process improvements, not one time cost avoidance. Reducing the time it takes to process a trademark application is a process improvement, whereas deciding to file a trademark application in fewer countries is a one-time savings. Process improvements give Wolverine savings each time we do an application.

The bonus builds on two opportunities: (1) reducing Seyfarth’s work, and (2) reducing foreign agent work. Between Wolverine and Seyfarth, Seyfarth has almost total control over the foreign agent work. So, for each $1 of systemic foreign agent savings, Seyfarth will be paid a $1 bonus. Seyfarth’s work is more closely tied to Wolverine. Since we must work together to reduce Seyfarth’s costs, we split each $1 of systemic Seyfarth savings $.75 to Seyfarth and $.25 to Wolverine. Put differently, for each $1 systemic savings on Seyfarth’s work, Wolverine will pay Seyfarth a $.75 bonus.

To measure Seyfarth’s systemic improvements, we will use two metrics: time to process an application, and time to receive a useable specimen (we have to file specimens in certain countries to show we are still using the mark). We need one score across both metrics to determine Seyfarth’s bonus, so we will combine the results on the two metrics by weighting them 80% on trademark applications and 20% of specimen gathering. We calculate the trademark application improvement metric, multiply it by .8, calculate the process improvement on specimens metric, multiply it by .2, and add the results. For every X% of weighted process improvement, Seyfarth will earn $.75.

Let’s compare this to a common executive compensation bonus system. I earn a base salary (base fee). My long-term bonus depends on the company’s performance on two metrics, earnings per share (think trademark applications) and value added (think specimen gathering). EPS counts for 65% of the final score, and value added counts for 35%. We get the final score by taking the weighted score (.65 times EPS score plus .35 times value added score), and apply that weighted score to the sliding bonus scale. For each X% improvement in the EPS/Value Added score I get a bonus of $Y.

I’m going to emphasize one point – this structure depends on process improvements not one-time savings. That means we need a system (we are using, of course, SeyfarthLean) to document existing processes, improve those processes (reduce work), and ensure that they are repeatable. Since many have successfully used lean process improvement for services where you could claim there is great variability (for example, medical treatment in hospitals), using it for legal services does not present any unique challenges.

Next: Explaining the power of this approach in driving shareholder value for Wolverine, and margin improvement for Seyfarth.

The firm view

From Lisa:

As the provider, we were delighted by Ken’s approach. We believe that it is fair, aligns us with Wolverine and properly reflects our joint expectations for the further development of the trademark service platform. 

More than that, it provides a compelling strategy for recognizing both the “industrial” and “artisanal” components of our work that Ken has described in the past. We receive a fair base fee and the opportunity to do better if we can help to build out the service platform.  We are absolutely committed to working with Ken’s team to identify process efficiencies and other systemic changes, believe we can do it by harnessing the capabilities of SeyfarthLean and agree with Ken that his approach fairly reflects that commitment.

So, what did we need to do from our end to get comfortable with the approach from a business perspective? We clearly wanted an approach that worked off a different calculus than seeking to compare the projected results of Ken’s pricing strategy against a traditional hours times rates model. That approach might have been ok but was clearly inconsistent with the core theme of the Wolverine trademark relationship 

Like Ken, we worked first to develop a scoping model that projected fees under several different scenarios. Working with Ken, we determined that his numbers and our numbers on scope were close and elected to work with Ken’s numbers (that company knowledge thing). From there, we looked at our costs to deliver the scope, ran through a scenario analysis that Ken developed and looked at margins. With that analysis, we concluded that Ken’s strategy should bring us together with Wolverine in a joint mission to handle the daily core services and further develop the trademark platform.

This exercise was similar to our more traditional pricing analysis only in the goal of seeking to understand the financial results of various scenarios. The economic incentives associated with rewarding strategic value (as the client understands it), however, was very different from the more traditional approach to pricing trademark portfolio services and very cool from our perspective.

Next: Working as partners; next steps.

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 Process Mapping Primer 

Week 12. Each week via the In-House ACCess blog, follow the promise and pitfalls of forming a new value-based client-firm relationship. ACC Value Challenge steering committee member Ken Grady, General Counsel and Secretary of Wolverine World Wide, offered to profile his selection and start-up process of launching a trademark portfolio management engagement with law firm Seyfarth Shaw. Ken's co-blogger is Lisa Damon, a member of Seyfarth's Executive Committee and leader of the firm's efforts to incorporate Lean Six Sigma into its business. The voice, views and stories expressed by the authors below are their own and not ACC’s. To catch up on the story so far, click here.

The client side

From Ken:

Lawyers are idiosyncratic workers. We do things differently when you compare one lawyer to another, and we do things differently when you compare how we do the same thing from time to time, such as preparing contracts. We justify much of this idiosyncratic behavior by claiming we do bespoke work – each time we do a case, contract or other matter, it is unique. Our idiosyncrasies, however, make us very inefficient.

We have designed the Wolverine/Seyfarth partnership to reduce process variability, using the SeyfarthLean techniques, so that we each become more efficient in providing legal services to our client. To know what Wolverine does today, we will make process maps. A group of two to eight individuals, drawn from both entities, will brainstorm and capture each step in a current process. In the old days, we did this by taping a long piece of butcher paper on the wall and noting each step in the process sequentially along the length of the paper. With all the mistakes, corrections and additions, it was busy when we finished. Today, Seyfarth does the same thing using computer tools that make the result much cleaner. Using the process map, we then (1) simplify steps, (2) weed out unnecessary steps, (3) re-sequence steps, (4) standardize steps and (5) create tools for steps. Each time we change the process, we update the map. We pull from a variety of metrics to measure our improvement – e.g., overall time to complete the process or number of steps in the process.

An obvious place to start with a trademark portfolio is the application process. The client sends an e-mail asking about the availability of MARK for use with a product. The in-house paralegal does a quick screening search and e-mails back saying that it looks like it is available, and asks whether she should do a full search and how the client will use the MARK. The client emails back saying yes to the full search, and gives a partial answer on use. The paralegal e-mails the outside paralegal requesting a full search. The outside paralegal requests the search and sends the outside IP attorney the results. The outside IP attorney has some follow up questions and sends them to the in-house paralegal, who in turn sends them to the client, who in turn responds to the in-house paralegal, who in turn responds to the attorney. Draw a line on your yellow pad and put each of these steps in sequence. Congratulations, you drew your first process map and already see several ways to improve the process. After each iteration, we want to achieve a steady state. That is, we want a defined process that we will repeat each time we do an application keeping variability to a minimum. One benefit of this technique is that you can apply it endlessly to any given process, always finding room for improvement,

We still can be brilliant lawyers. We just exercise our brilliance at the right time in a defined process that eliminates the unnecessary steps that cost our clients more, but don’t add value.

Next: So what is the status of those fee discussions?

The firm view

From Lisa: 

Ken has delved into the world of process mapping in his post this week. Okay, we love process mapping. We use this Lean tool often at Seyfarth -- we use it in very complex matters and those that are more repetitive. We may do it electronically, on a white board or even in our heads -- the trick is that it is a way to think about a problem.

When we first started working on process mapping, there was some resistance among our lawyers (and from me, as well). "Every matter is different," I kept saying. "This is complex litigation. How can we know what will happen?" We also heard: "My M&A work is highly specialized; a process map won't work." However, as we began to refine what we thought what a map could be and how we put it together, our lawyers began to see the magic of the tool. We think of our maps as "guides." We know that every legal matter is different, but we use maps to think through strategy, to organize our resources, to spot inefficiencies and to refine our strategy. They have become for many of our lawyers a true strategic tool as they think through complex issues for our clients. A quick plug: If you want to see how this works in real life, Ken and I will be doing a session at the ACC Conference, where we will have the audience on its feet, using a number of Lean tools, process mapping included. If you are coming to San Antonio, join us for some fun.

Another tool that we love to use to think through an issue is a "root cause analysis" tool. This can really force you to think beyond immediate problem-solving by requiring you to stop, think and ask tough questions. One of the tools, in fact, is called the "5 Whys" because it essentially demands that you probe for the root cause, using a series of "why" questions.

We also use other tools to guide our thinking. We find that other tools -- fishbone diagrams, for instance -- can be useful in working through client and internal issues to help identify the right solutions. I used one in a complex internal investigation last week, and it enabled me to get to an efficient solution that worked at the heart of the matter, not the periphery.

As we have said before, Lean gives us a way to think, a different approach to the practice of law. The tools support the thinking; they allow us to analyze and solve problems more efficiently and effectively. We would love to hear what kinds of tools and disciplines you are using. Let us know.

Next: A fee update and Ken teaches Seyfarth

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 The grocery-strategy connection

 Week 11. Each week, via the In-house ACCess blog, follow the promise and pitfalls of forming a new value-based client-firm relationship. ACC Value Challenge steering committee member Ken Grady, General Counsel and Secretary of Wolverine World Wide, offered to profile his selection and start-up process of launching a trademark portfolio management engagement with law firm Seyfarth Shaw. Ken's co-blogger is Lisa Damon, a member of Seyfarth's Executive Committee and leader of the firm's efforts to incorporate Lean Six Sigma into its business. The voice, views and stories expressed by the authors below are their own and not ACC’s. To catch up on the story so far, click here.

 The client side

 From Ken:

Nutritionists have told us for years that we should develop a strategy before we go grocery shopping. We should plan our meals for the week, deciding what we will have at each meal, and how to do things like sequence the meals to use leftovers. From that plan, we should develop our grocery-shopping list. If you are efficient, you group items on your grocery list according to where the store places those items. When you go shopping, you move efficiently through the store, without backtracking, and you buy only what you need. You don't go shopping when you are hungry, and you don't give in to the temptation to buy those goodies in the checkout aisle.

Lawyers love tasks and checking things off lists, but as much as we advertise our strategy skills to our clients, we often neglect that step ourselves. We don't develop our strategy before we dive into the tasks. Of course, we do use strategies from time-to-time, usually for lawsuits, acquisitions and other transaction events. However, typically, we don't develop strategies for routine work.

For the Wolverine trademark portfolio, Wolverine and Seyfarth are working to develop many strategy tools. These tools will guide our decisions on issues relating to each mark, streamlining pieces of the decision process that today are ad hoc.

We want to make decisions up front about what to do in various situations and know where marks fit into our portfolio before we are confronted with the question. For example, we want to know the relative importance of a mark, and which countries are more important for that mark -- based on factors such as sales levels, related marks and counterfeiting risk. We want to have a strategy for customs surveillance, and a strategy that ties the mark to our domain name strategy. Using these and other strategy tools, we can make decisions quickly. If something pops up on a watch list, we know whether that country is important for that mark, and that guides the decision about what effort to put into a response. We avoid ad hoc decisions that result in our buying things we don't need.

Doesn't it take time to develop these strategy tools? Yes, but not a lot. Once we have the template, the time is in filling out the templates with the assistance of our client. The savings potential is enormous. It can cost thousands of dollars to oppose a proposed registration of a competing mark in one country. If we decided that our mark in that country is not strategically important and we avoid spending the thousands of dollars, then we probably covered the cost of the strategy process for the mark. We avoided the temptation to buy something in the checkout aisle and stuck to our original strategic shopping plan.

Next: Developing a map to the future.

The firm view

 From Lisa:

Ken's entry this week talks about developing a strategy before you act. For us, Lean Six Sigma helps provide the discipline for that step.

When I look at how Lean has changed my life as a lawyer, one of the keys for me has been to develop the discipline to stop and think before returning to business as usual. Ken talks about this step in the trademark area; for us, it is a step we try to use in every matter across the spectrum.

A key feature of Lean is DMAIC, a structured way to look at a matter and plan an approach, a strategy. This discipline asks you to:

·       Define the problem first -- what are you trying to accomplish? What problem are you solving? It mandates talking to your client, standing in his/her shoes and understanding the issue.

·       Next, you Measure. Look at the information/data that you have available (not relying on your "gut" or on the way you have always done something).

·       You then Analyze and Improve -- or implement -- the strategy or the solution.

·       The “C” stands for Control, which is the discipline of not going back to the way you have always done something, not returning to "business as usual."

Using DMAIC as a framework for the way you think about a legal problem can be no more than a quick mental ‘stop and check’ before you begin a project or a longer more involved discussion. The important thing for me is the pause to think, to consider and to plan -- the strategy that Ken talks about.

Lean provides other tools that I find useful in the world of lawyers -- for instance, the concept of looking at the root cause of problems and the tools designed to help you get there are ones that I use frequently -- not just in law, but in my like life as a manager of people. Too often, instead of stopping and analyzing, we jump to a solution -- lawyers are trained to solve problems. Again, Lean gives us the discipline to stop and consider: Are we really solving the root cause, or are we simply putting a bandage on something that won't last or won’t truly solve the issue?

Like effective project management and process design tools, taking time to plan strategy on the front end almost always saves time on the back end. I believe that strategic planning is not a luxury or an option to use only when time permits, but instead, it is a step that should always be integrated in my thinking -- whether I'm planning the trip to the grocery store or planning a much more complex project for one of my clients. I guess that all of those law school professors were right in the first place: Keep your pencil down in an exam until you have planned the answer!

Next: Working with Ken to map out strategy

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“Past performance does not guarantee future results.” I thought about this warning commonly seen on mutual fund prospectuses when reading an excellent column by Robert Samuelson in the Washington Post on the dangers of success, “Oil Spill Reveals the Dangers of Success.”  Samuelson’s piece provides an excellent corollary to a David Brooks column and risk management that I wrote about last week, “Risk Management: Art or Science? ”

Samuelson opens with the apparent triumph of technology and the success of deepwater drilling and its excellent safety record.  However, he believes this led to overconfidence that possibly caused the failure and remarks on “the stark contrast between the disaster’s magnitude and the previous safety record…Continuing achievements obscured the dangers.”

Samuelson also sees this pattern in other setbacks:

1. The financial crisis:  (Subprime mortgages did not cause the crisis but rather the decision by sophisticated investors to buy these products.)  He asserts that this was reasonable behavior at the time as the economy seemed less risky and there was less volatility in the market.
2. Toyota scandal: Toyota was a model company with an enviable reputation.  Its very success explains the slow response by both the government and the company—the problems were out of character.

As Samuelson notes, the current assumption is that the disaster at Deepwater Horizon could have been prevented because it was caused by human error.  He suggests that the post-crisis investigations will complete the story and we will learn what happened.  

However, for in-house counsel (and those charged with responsibility for compliance and risk management for their employers), he goes on to ask the more important question, not “what happened?” but “why?”

He concludes with the theme that there is “a cycle to our calamities, or, at any rate, some of them. Success tends to breed carelessness and complacency.  People take more risks because they don’t think they’re taking risks.”

Of course, after each crisis or catastrophe we analyze and study and in many cases the “risk” becomes more obvious because we have the benefit of looking back at what happened; we suffer from ”hindsight bias.”

In short, we celebrate success by relaxing; then unknowingly take on more risk.  For lawyers, risk managers and society, Samuelson succinctly describes the challenge. How do we “acknowledge this urge without being duped by it?”

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I admit it: my global travel experience is limited. I have only traveled out of the United States to Canada, Mexico, and the Caribbean. You guessed it: two out of the three trips were for vacation. I am not the candidate of choice for anything international. And, to top it off, I only speak one language: English. When I was in school, we were not required to take a language. Hindsight tells me that this was a grave mistake in the American school system and I went right along with it.

That said, I am proud to say that my circle of friends, acquaintances and business associates are more varied than my global travel. I do not hesitate to ask them questions about their culture or country. We sometimes even discuss the dreaded no-no’s of social circles: politics and religion. But, I ask questions in such a way as not to offend or condescend, but to learn. After all, unless I travel to their countries and live within their cultures, how am I supposed to find out what it’s like? Luckily, the people I know are generous and provide me with details that I bank for further exploration. My global experiences are only just beginning and I seek as much information as possible to be prepared for future travel.

The global business relationship may not be the situation you want to walk into as a novice, as the environment can be nuanced and fraught with cultural and legal differences. This is where ACC can help. We provide not just resources, but people: other legal professionals who serve as in-house counsel in other countries. ACC’s International Legal Affairs Committee is comprised of an active group of members from various companies and stages of career development. They can show you the tools you’ll need to navigate your global journey. They offer insights you may not be able to find elsewhere. Some of their experiences are shared in this month’s ACC Docket. Six feature articles focus on some aspect of practicing law in a global setting. And, the June issue is also one of the issues in which we publish one of our three international-focused newsletters, European Briefings. Finally, if you truly can’t get enough global insight, our monthly “Going Global” and “Outsource Resource” columns are regular reminders that global business is literally a phone call or an email away. Technology has made it so that we can communicate at a much quicker pace, much to the delight of some and the chagrin of others. You never know when you might be called upon to expand your knowledge base to include global matters.

Whether your passport is covered with stamps or waiting to be filled, ACC offers you insight into international legal issues, customs and cultures. From Finland to Mexico, from Bulgaria to Quebec, from Nigeria to Hong Kong, in-house counsel must be ready to address the complexity that international business operations entail. ACC’s worldwide reach and resources provide your law department with best practices that capture a global perspective. And, this global issue of the ACC Docket will help you and your company navigate the globe — it’s a small world, after all.

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Street Law, a nonprofit organization that provides education programs about law, democracy, and human rights and a partner with ACC on the corporate legal diversity pipeline initiative held their annual dinner last week in Washington, D.C. What an evening it turned out to be! The ballroom was packed and charged with energy. The award winners inspired us with their stories and commitment to the practice of law.  

Our former board member, colleague, and friend Tom Sager and his legal team at DuPont were honored with the 2010 Legal Diversity Pipeline Award. With Tom’s support and leadership, DuPont created a banner program that brings their legal team into a Wilmington, DE, high school. At the dinner, it was great to see that DuPont had two tables of employees enjoying the special evening and the kudos for their efforts. Legal counsel Ernest Tuckett was recognized several times for his work. And Pat Quann, the executive director of the Delaware Law Related Education Center, was honored for her role and her partnership with DuPont.

I’ll give you an aside about Tom and why we are especially proud. Tom arranged to fund development and distribution of a pipeline kit and partnered with ACC to develop a program that introduces high school students to corporate legal departments. Many students have never met an attorney and certainly never considered going to law school. Class by class, that is now changing, as our colleagues teach, lead and mentor their local students. Take a minute and watch the Street Law video about this partnership and see why we are excited by this initiative and the results we see.

Also receiving kudos during the evening was a Kentucky teacher who received the 2010 Educator of the Year Award. Joseph Gutmann teaches at the Law and Government Magnet at Central High School in Louisville, KY. He usesthe Street Law curriculum in the second year of the magnet’s three-year program. Mr. Gutmann brings in local law students to teach about practical aspects of the law. A former prosecutor who became a teacher after 9/11, he is an inspiring teacher. With his leadership, the magnet now receives twice as many applications than they can accept.

Finally, the 2010 Advocate of the Year was awarded to Tetiana Remekh, a program coordinator at Teachers for Democracy and Partnership, a Ukrainian civic education NGO, which trains thousands of Ukrainian teachers in civics and law. Working with Street Law, she developed a Ukrainian version of the Street Law textbook, which was approved by the Ukrainian Ministry of Education and Science and is a mandatory part of the nationwide curricula.

We were all honored by the presence of our nation’s top lawyer, U.S. Attorney General Eric Holder. After a standing ovation, the attorney general received the Chesterfield Smith Award. An icon of the bar, Chesterfield Smith was one of the earliest crusaders for diversity in the profession. Attorney General Holder is committed to the concept of diversity and believes strongly that the profession depends on those who follow us.  

And, a special thank you to our own SVP and General Counsel Susan Hackett, who served on the host committee for this wonderful event and who has worked tirelessly on the Corporate Legal Diversity Pipeline.

Approximately 40 major corporations around the country have Corporate Legal Diversity Pipeline Programs with Street Law, some of the most notable including Coca-Cola, Turner Broadcasting and McDonald's.

[Attorney General Holder’s remarks from the evening are posted here as well.]

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We are pleased with the interest in the ACC Value Index (AVI) since its release last month at the ACC Annual Meeting in Boston. The attention from the media and law firms at this early stage of development reflects the potential value of the AVI to our members. Recent Blog posts and articles, especially those that show “purported ACC law firm rankings,” require clarification:

• The ACC Value Index is in the early data-gathering stage and it will take time to develop a robust database.
•  It is premature and inappropriate at this time to cite "rankings" of law firms given the limited number of evaluations submitted thus far.
• The AVI is a service for ACC members that will enable them to share information and communicate with each other about the selection and retention of law firms.
• ACC will share with each law firm the evaluations it receives about that firm as soon as we finalize the appropriate formats and procedures.

We welcome the continued input, feedback and engagement of the legal community in the ACC Value Challenge.

ACC President Fred Krebs on the ACC Value Index

Friday, November 13, 2009

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The recent launch of the ACC Value Index at ACC's 2009 Annual Meeting generated significant interest and commentary, including both praise and criticism. 

We welcome these comments because they not only further the attention and discussion about value in the delivery of legal services (a primary goal of the ACC Value Challenge), but they will also help us to improve the ACC Value Index (AVI).

            A few additional thoughts on the AVI:

1.           We created the AVI as a member service, so by definition, it is available only to ACC members. Stated simply, it provides two specific benefits to our members: a) the compilation of individual ACC member views on the value received from specific law firms; and b) the ability to find other members who have used a firm in order to communicate with them and engage in a dialog about their experience.  The AVI is a specific tool meant to inform decisions as part of a larger process of selecting and retaining a law firm.

2.           Members may post an evaluation anonymously or with identification at their option. We believe the anonymity option to be important - particularly at the outset of this initiative. Over time, as the AVI gains acceptance among our members, I anticipate that the percentage of anonymous postings may decline.    Evaluations can be posted with attribution - or anonymously - as we seek useful and candid information to build acceptance of the evaluation concept generally.

3.           We will make the evaluation summaries available to the law firms. When and how best to do that remains under consideration by our Advisory Committee. A corollary benefit of the AVI will be the ability to recognize those law firms that provide value in the collective judgment of our members.Coinciding with the overarching goal of the ACC Value Index – information gleaned from the AVI will help to foster a greater dialog between clients and their outside counsel.

4.           The AVI is a work in progress and we are pleased with the interest and input it has generated to date. Nevertheless, it will take time to populate the database with sufficient evaluations to reach a meaningful threshold.  The AVI database has been populated with over 1,500 evaluations, reviewing over 400 firms, and we will continue with our member outreach for additional evaluations.

5.           The AVI is only one part of the ACC Value Challenge, which encompasses a larger effort to reconnect value to the cost of legal services. Other aspects include a) “Meet. Talk. Act.” which encourages clients and law firms to engage in discussions about value and their relationship; b) a law firm economic model; and c) specific resources with examples of value practices and ideas on ‘how to’ implement practices focused on value.  Resources, success stories and updates are continually added to the ACC Value Challenge community pages and we encourage law firms to get involved and help to provide additional information/resources.

6.           One important observation on the evaluations received to date: law firms generally do good legal work, but all too often, do not have costs and matter management under control. Effective cost and project management should be a key objective -- for both clients and firms to effectively work together. By managing legal matters in a business-focused, client-centric way, as opposed to basing solely on “hours worked,” the agreed upon business objectives will drive greater efficiency, and ultimately, value.  Law firms must learn to reduce their costs while improving quality. Our members’ companies operate under this imperative, and their outside law firms should, as well.

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The situation:

•    The economy is in recession
•    Businesses of every size are being impacted
•    Internal staff is being asked to do more with less
•    Layoffs are a matter of fact.

It should be no surprise that this slump is impacting the legal industry. Many blog sites, including the Wall Street Journal and Above the Law, have daily posts on staff cuts and other changes in the marketplace. Numerous surveys indicate a gap between in-house counsel and outside counsel. Where is value and how does it relate to annual spend?

On April 13, 2009, I had an opportunity to attend my second ACC Value Challenge event. Unlike nearly everyone else in the room, I’m not an attorney. My background in the legal industry and understanding of law firms gives me an interesting perspective of the two somewhat differing worlds. In attendance were a number of law firm partners and in-house counsel, including a number of general counsel from local corporations.

My twitter stream (@time2simplify) had a few gems:

One attendee recognized that the ACC Value Challenge event is being held at the Ritz-Carlton... many lols. "best place at best price"

Both law firms and in-house departments share a similar problem: Desire to impact the bottom line is shared by both managing partners & CFOs

Take-away items from the event include:

• One definition of value: Good work – and perhaps value - is not over-lawyering (defined as anything that is not needed and appropriate)
• How are attorneys using technology? Extranets, e-billing, and knowledge management were a few examples.
• If the golden gate bridge can be built on a contract, couldn’t a large legal matter?

So legal community, what’s your point of view?

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A short time ago, I blogged about the importance of building a life line before you needed it. In that blog I described the value of the connections you would make with your ACC colleagues as an end in itself. Fred Krebs recently helped me reconnect with Bob Banks, former General Counsel of Zerox, and the father of ACC.

ACC was formed by a number of energetic and farsighted in-house lawyers. But among this group of talented lawyers one stood out.  For those of us who were around at ACC’s beginning, it was clear that Bob was the spark that created this organization.

I came to know Bob through a reference of a lawyer at the Ohio Lawyer’s Disciplinary Commission. I had been referred to the Commission by the then Chief Judge of the Ohio Supreme Court to whom I had written questioning Ohio’s policy of not permitting one to count time spent in Ohio as an in-house lawyer towards reciprocity admission, while the same time could be counted for reciprocity admission in New York. The Judge, apparently unaware of the rule permitting in-house attorneys to practice in Ohio without being formally admitted, concluded that I was practicing in Ohio without a license and referred me the disciplinary commission.

Chief Judge Celebrezze (as distinguished from Anthony Celebrezze of the Sixth Circuit) was widely reported as using the disciplinary commission as a means of dealing with any controversy concerning his role in office, and there was quite a bit. The lawyer at the commission was understanding and disturbed by the misuse of the office and referred me to Bob Banks, who was reported according to him, as beginning an organization that might just address admission issues for in-house counsel and lawyers generally.

After talking with Bob on the phone I met him for the first time, and I have still have a vivid memory of the meeting, at the Corporate Counsel Institute at Northwestern University Law School. ACC, then ACCA, was an idea coming to life.

I renewed my correspondence with Bob a few days ago (thanks to Fred Krebs sending me a current e-mail address) and have begun once again to share ideas on current issues in the profession. It made me recall the hope and spirit of confronting challenges that infused ACC’s creation.

Bob and his colleagues who founded ACC gave us a great gift—an organization that permits us to change and improve ourselves and our profession in way that none of us could do without it. This Holiday Season we need to remember these founders who built an organization whose creation was not without opposition and controversy. And we should remember that we can best honor their effort by using the organization to its potential.
 

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For many in our profession this holiday season is going to be a stressful time. The economy is taking its toll and some of our colleagues have already been laid-off while others are no doubt concerned what the New Year will bring. ACC can be a life line through connections you can develop with your ACC colleagues. However, as valuable as ACC can be; it is not the best time to start building a life line- you should have been doing that already.

Our local chapter had a winter social. NEO ACCA has energetic leadership and typically they have two social events a year. I must admit in the later years before my retirement  I had not attended many of their events, in part because my travel schedule kept my out of town. However, since I began writing this blog,  I have made an effort to attend these events and some of the local programming. It has been a great experience. I have met many people with varied interests beyond the law, and the food has been remarkable as well.

I asked the chapter administrator what percentage of the membership actively participated in the ACC activities. She said about ½. The other ½ she said would only show-up when they were in the job market. I have a couple of observations surrounding that fact. The first is that ACC connections can be a great resource of networking when you are looking for a job, but it can be a lot more effective if you build your relationships before you need to rely upon them. A strong personal acquaintance is a far better network connection than a passing contact. Second, actively participating in your chapter and the national organization is going to develop an invaluable group of acquaintances that will keep you connected to the profession and create opportunities even after you retire—you can take my word on that.

Finally, your ACC activities will help you develop and hone your legal skills, give you to access to abundant expertise and create life-long friendships. I got far more from my ACC activities than I ever gave and you will have created a life-line if you ever need it.

View upcoming ACC Events

Join an ACC Committee

Check out the ACC Jobline
 

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This is a guest post by ACC Board Chair, Ivan Fong. This was originally published in the December issue of the ACC Docket.

As I write my first ACC Chair message, the headlines are grim, relentless and frankly depressing: major companies announcing layoffs, cutting budgets and some even seeking government rescues. The global economy is interconnected and hence unavoidably in distress. We have a new president faced with unprecedented domestic and foreign policy challenges. I have no doubt that you, too, are worried about how the turmoil will affect your organization.

Despite these difficult times, it is important to remember to maintain perspective, pause, and reflect on our priorities. What should our priorities be? Let me offer three: First, we need to continue to provide the highest quality services to our corporate clients in the most efficient way possible. Second, as “gatekeepers,” we must remain vigilant on compliance matters and be pro-active, preventive, and protective of our clients’ reputations. And third, we must continue to build culture and community within our law departments, companies, broader communities, and family and friends.

The good news is that ACC’s resources can help. As part of this global association, you have unlimited access to best practices. Advice and guidance from other in-house counsel is readily available: MemberToMember, local chapter programs, committee
listserves, and webcasts , are here to connect you. Looking to delve in deeper on an
issue? Save time and money with ACC Docket articles and InfoPAKs^SM for substantial information on the issues you face. ACC’s surveys, and subsequent benchmarking data provides meaningful insight.  For those directly affected by the economy, ACC also has excellent job and career resources, ACC Jobline^SM.

With increased scrutiny on budgets also comes an imperative for in-house counsel to review and evaluate outside counsel spend. The ACC Value Challenge, a new initiative to reconnect costs and value for legal services, will help to drive an alignment of interests with a focus on high value. Toolkits are available for in-house counsel and law firms to help drive change in the performance of value-based legal services. You, too, can become engaged with this community, help enhance awareness, and communicate success stories.

I have had numerous conversations with ACC members and many agree that this economic storm will pass, though it may take some time and cause painful dislocations. An ACC Board Member commented recently that, “How you’ll be judged after the economic storm is over is by how you handled the storm itself.” We cannot, therefore, lose sight of the things that really matter: credibility, integrity, courage, and community.

Einstein said it best with his three rules of work: “Out of clutter, find simplicity. From discord, find harmony. In the middle of difficulty lies opportunity.” Take advantage of all that ACC has to offer, and don’t be dissuaded by the added scrutiny; don’t despair in the face of challenges; confront them, and through it all, look for the opportunities. If you have any thoughts or suggestions for how ACC can help you—and its 25,000 members
worldwide—please send me an email to acc.chair@acc.com.
 

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Who says Seattle is rainy? It's a BEAUTIFUL day here- Sunny and 48 degrees. No complaints. I got up early this morning and took a brisk walk to Pikes Place Market to have breakfast with one of my co-workers. If you get the chance, I highly recommend grabbing breakfast at Lowell's in the market. Great fresh food, friendly service, and a killer view. 

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Leadership Development Institute (LDI)  is held every year at Annual Meeting for the incoming leaders of ACC's Chapters and Committees. Run by our Director of Member Development & Chapters, Tori Payne, and assisted by our  Legal Resources Director, LDI focuses on whatr the new leaders of our chapters and committees need to know to head the most productive and active groups.  Having personally worked arm and arm with two of our 17 committees (one being New to In-house, which was awarded Committee of the Year, thank you very much), I know that the leaders work at LDI pays off! The training focuses on recruiting new chapter board members, motivating staff, increasing programming best practices, and much more.  This year, ACC has invited Peter Stark, a published professional with 15 years of career coaching and strategic planning experience, to speak at LDI. We couldn’t be more excited to have him share his expertise with us.

If you are attending the meeting and are interested in taking a more active role in your committee or chapter, please email Tori Payne or check with one of us at registration for more information. 

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Well, I’m about to head to Seattle to start the set up process for Annual Meeting. A few of the ACC staff heads to the site to prepare before our attendees join us for a CLE extravaganza. I’m particularly looking forward to our Going Green track of programs. It’s been a hot topic for awhile and it’s going to be great to hear how other in-house counsel are helping their companies comply with appropriate laws as well as be socially conscious.

In the same vein, I encourage you to check out our Green-house Counsel tip of the week. It's a weekly tidbit of environmental information, provided to us by Holland + Knight, to help you help your company and your legal department be more green.  I know, I know, I've been highlighting this product a lot, but it's really something that is of great interest to me, and to us here at ACC. At Annual Meeting '07, we went coursebook-less, by preparing customized emails for attendees which contained all of their course materials. This was our answer to cutting the use of paper and creating less of a footprint on the environment. It was received so well that we decided to do it again this year. And Seattle is a great place to embrace these green initiatives, as it is a city that prides itself on being  clean & green.

I'm looking forward to getting out west. If you're coming to the meeting, let's hear from you! What are you most excited about?

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ACC's Green-house Counsel is something we launched on Earth Day of this year. It's a weekly web feature which delivers resources, tips and facts to help your company adopt policies that are environmentally friendly – and often cost-effective, too. If you get the chance, make sure to check it out each week at acc.com/gogreen to learn how you can make your environment a greener one!

I'd be interested to know of anything you readers have implemented in your daily routines to become more 'green'. 

Also, if you are attending this year's Annual Meeting in Seattle, make sure to stop by the ACC Booth (#831) in the exhibit hall, and pick up your green gift- I promise it's a good one, and it won't take up much space in the suitcase. 

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