Q:
How do you include collaboration as part of a
successful legal spend management program?
Answer:
Collaboration is a process where two or
more people work together toward a common goal. This is usually
accomplished through sharing knowledge,
learning and building consensus. In the legal spend management world, we
see matter resolution as the common goal and collaboration as a way to prepare
for decisions related to legal strategy. Collaboration is a best practice
approach to decision making that helps ensure the most timely and successful
outcome.
There are several times during the
lifecycle of a matter where collaboration is crucial. These times include
during the development of the
initial assessment (who does what tasks
and by when), and when creating a
financial plan or budget for the matter.
The initial assessment should be referred
to continuously to validate that "we are on track". Any changes to this plan
must be documented in a place that is as easily accessible as the initial plan
itself. An online legal spend management solution that offers threaded
conversations and document posting capabilities will better support these
goals.
At the same time this plan is submitted, a
budget should be set. As you review the activities necessary to resolve
the matter, collaboration regarding the financial aspects of the matter should
be discussed as well. A legal spend management application that provides
a visible and easy-to-use budgeting tool in addition to actual-to-budget
comparisons is best. With these comparisons at their fingertips,
all parties can continuously assess new or alternate strategies to keep
resolution on track – and on budget.
Top 5
Collaboration Best Practices:
1) Don't replace conversation with email or notes. Instead, use email and notes
to confirm your understanding of the agreements that were reached during the
discussion.
2) Discuss with your firms how to budget effectively. Is it by task, phase or
matter level? Once this is established, agree with your firms how the legal
spend management solution will support the financial planning process.
3) Based on your experience, share with your team the value of performing
specific activities associated with a specific matter type and encourage them
to communicate the same message with the handling attorney. Are the right
people performing the right activities, and are there other members of the
firm's team that could do an equally effective job at a lower cost? Are there
activity dependencies that need to be taken into account?
4) Make sure the collaborative legal spend management system you use enables
you to measure success. Examples could be planned versus actual costs or
matters that are on budget; matters that settled for less than or equal to the
original assessed settlement value. This information will help your team
determine the firms you want to work with and to establish internal best
practices.
5) Use every opportunity to discuss how each activity or result impacts the
"plan" around the matter. For example, ask yourself and your partners, with
each activity completed, can this matter be resolved at this time?
Remember, collaboration is a critical component to an effective Legal Spend
Management strategy. The tools that support collaboration are great for
tracking processes and can provide some predictability for future cases.
Still want to learn more?
View now the archive
of our Collaboration Best Practices Webinar.
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