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It’s All About Value

It’s All About Value. Michael Roster Steering Committee Chair ACC Value Challenge. It’s All About Value. ACC member concerns Four off-the-record regional sessions Focus on value Predictability True dialog Change needed on both sides Chapter sessions like this one.

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It’s All About Value

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  1. It’s All About Value Michael Roster Steering Committee Chair ACC Value Challenge

  2. It’s All About Value • ACC member concerns • Four off-the-record regional sessions • Focus on value • Predictability • True dialog • Change needed on both sides • Chapter sessions like this one

  3. It’s All About Value • Auto manufacturers (and dealers) • Airlines (and travel agencies) • Doctors (and hospitals and insurers) • Publishers (and distributors) • Retailers (and suppliers) • Other industries (you know and/or represent) • You

  4. It’s All About Value In the past ten years, costs to U.S. companies went up 20% . . . . . . except legal costs, which went up 75%. -- Study by Corporate Executive Board

  5. It’s All About Value Change is difficult: • Legacy costs and systems • Existing methodologies • Income expectations • Culture

  6. Spaghetti Diagram: Legal Department Negotiates Master Agreement with Vendor • Business unit wants to use vendor; initiates request • Contracts Administration sends info packet with standard agreement to vendor • Vendor reviews documents and proposes changes • Contracts Administration notes changes and forwards to Legal Department • Legal Department reviews changes and proposes new language • Vendor reviews documents and proposes further changes to terms • Contracts Administration notes changes and sends to Legal, Accounting, Insurance, and / or Business Unit for review • Reviewing Departments approve • Final version is executed by vendor and by Contracts Administration • Paper copy is scanned • Original is filed • Business Unit gets scanned copy of contract • Details summarized in Contracts Database 2 4 7 9 13 8 5 10 8 11 1 8 12 Hard Copy Electronic 3 6 9 What kinds of waste are in this process? From LSSO presentation

  7. Case Study – Sample Results Time Charges Before: After: From LSSO presentation: Six Sigma Legal Services for Mortgage Loans, Richard J. Sabat, Morgan, Lewis, and Bockius LLP

  8. It’s All About Value • There are lots effective methods • Most were done years ago and are equally viable today • In other words, it hasn’t always been done this way

  9. In the end, it’s all about value. So where are you . . . really?

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