Managing Perceptions of Value

1. Managing Perceptions of Value Sally Gonzalez Director Baker Robbins & Company SGonzalez@brco.com

2. Technology is only valuable if clients and lawyers perceive it as such. How can we develop and fulfill expectations in a way that creates a lasting sense of value? Today’s Proposition Firm Facing Client Facing Perceptions of Value

3. First…The Challenge of Value • Exists only in the eye of the beholder • “One man’s meat is another man’s poison” • Situational by nature • Subject to change over time • Today’s value is tomorrow’s commodity • Begs to be measured • Quantitative vs. qualitative • Demands dialogue • Needs to be made explicit • Requires continuous focus

4. Building Client Perceptions of Value

5. Higher Bespoke Value & Risk Brand Distinguishing(Extranets, Apps) Commodity (Extranets, E-Mail, Voice Messaging Lower Client-Facing Technology Opportunities

6. Higher Bespoke Value & Risk Brand Distinguishing(Extranets, Apps) Commodity (Extranets, E-Mail, Voice Messaging Lower Should Firms Charge for these Services? Qualifying Question: Is the primary value monetary? Possibly, but often not Probably not Not

7. Value: What do corporate clients want? • “What corporate clients want and need: value driven, high quality legal services that deliver solutions for a reasonable cost and develop lawyers as counselors (not just content-providers), advocates (not just process-doers) and professional partners.” • “The problem is not cost per se, but the fact that cost is disconnected from value.” • Goal: Reconnect value and costs through dialogue, methodologies and metrics, tools to drive change, and enhanced awareness and communication of success stories Source: The ACC Value Challenge Project

8. “Next on our agenda, Bendleman will present the outside counsel budget through interpretive dance.”

9. How Can IT Participate in Delivering Value to Clients? • Understand the client’s view of the value proposition • Partner with client teams (if your firm has them) • Build the right skills into the IT organization • Research your firm’s top clients • Find out what competitors are doing • Identify solutions and “pitch” them to the firm • Demonstrate the value proposition • Build confidence in IT’s ability to deliver and sustain solutions • Start small • Never fail where it shows • Be persistent

10. Firm-Driven Solutions: Brand Defining Extranets Value: Differentiating Firm from Competitors Leveraging existing content Source: http://www.foley.com/services/otherservice_detail.aspx?serviceid=8

11. Firm-Driven Solutions: Brand Defining Extranets Source: http://www.allenovery.com/AOWeb/binaries/46504.pdf

12. Client Perspectives? • I expect my firms to offer extranets at no cost • I’ll use extranet sites only for critical matters and only if the firm really keeps the content fresh • I don’t like: • Having to remember different IDs and passwords for separate firm sites • Having to go to separate sites for each firm • I want an aggregated view of all information across all matters irrespective of firm providing services • Some clients build matter management systems to address this • Some clients use public services for selected matters Query: Why don’t firms band together to provide information in a consistent way to feed MMS’s?

13. Firm-Driven Solutions: Sharing Knowledge Resources Value: Differentiating Firm from Competitors Leveraging existing content Value Add Services Open to Public Client Specific

14. Client Perspectives? Thank you very much! Please make sure the content is up-to-date and easy to search and use!

15. Firm-Driven Solutions: Sharing Current Awareness Value: Differentiating Firm from Competitors Leveraging existing content Value Add Services

16. Client Perspectives? Thank you very much, but… If you really want to stand out from the crowd… Give me current awareness tailored to my company and my current business issues!

17. Managing Matters & Budgets Value: Satisfying client demand for better matter management and greater transparency into spending while matter is on-going • Foley ClientSuite: Budget Management Tool • Track spend against budget • Monitor burn rate & run rate • Drill down to project task or phase

18. Client Perspectives? Thank you very, very much! Still… Lawyers need to become good project managers to populate and use the systems effectively!

19. Firm as System of Record Value:Providing on-line repository of all client information accessible to lawyers and clients

20. Client Perspectives? Thank you very, very much! I’m glad you are taking good care of our records and docket because my law department has very limited tools.

21. New GC Arrives Global KM Team & 4 Quick Wins KM Strategy First Global KMO Global Network Next Generation Systems Outside Counsel Initiatives Client-Driven Solution: Novartis Legal Department 2006 2006-07 2007 2007 onwards Novartis Legal KM Initiative

22. myLegal Portal myLegal Search myLegal Knowledgebank myLegal Expertise myLegal Matters Next Generation KM Systems Novartis Legal KM Platform

23. Novartis Outside Counsel – The Vision • Integrate law department and law firm systems seamlessly through personalized portal (“extranet-less extranet”) • “Google-like search” returning unified internal and external results for documents & people • Comprehensive training portfolio • Improved precedents and current awareness • eBilling & Matter Management

24. Novartis Outside Counsel – Value Proposition • Make lawyers more effective and efficient • Manage spend • Improve internal lawyer skill levels • Expand knowledge repositories • Leverage Novartis’ technology platform (no special apps)

25. Novartis Outside Counsel – A tale of 4 firms • A&O: from the beginning • Morrison & Foerster: connecting through Recommind • Cravath: focus on training • W&C: taking it further through a Global Client Team… • Training • Extranets • Precedents & Models • Current Awareness • …Each delivering value in its own way

26. Common Denominators • Client has a specific need • Firm gets visibility into that need • Firm crafts and delivers solutions • Lawyers, IT, KM, BD, and PD working in partnership • Unique solutions evolve into generic (sometimes) • Client perceives value add • Lawyers perceive value through client’s eyes

27. Building Internal Perceptions of Value

28. Strategic Planning • Strategic technology planning sets the context for on-going value discussions Plan Current State Vision • Provide baseline against which to measure change and demonstrate value • Understand firm’s goals and needs • Frame benefits accordingly • Make value proposition transparent • Build support for investments & change • Frame benefits in terms of business goals and objectives • Demonstrate value: create clear linkage between investments and benefits

29. Get More Work Managing The Firm Exceeding Getting Work Staffing Work Doing Work Getting Staffing Doing Managing Work Work Work Work Expectations Supporting The Practice Copyright, Michael Farrell Group, 2002 Understand the Traditional Law Firm Value Chain & How IT Helps

30. Understanding How Your Firm Defines Value Typical Value Drivers for Law Firms • Profits Per Equity Partner (PPEP) • Increase revenues • Manage/reduce costs • Recruiting, developing, and retaining top legal talent • Delivering high quality, timely legal services • Expanding services to existing clients • Attracting new clients • Maintaining competitive positioning Tip: Find the answers through dialog and research

31. Project Service Project Project Project Project Service Project Project Service Project Service Project Project Align IT to Your Firm’s Value Definition • Increase revenue • Reduce costs • Develop/retain legal talent • Improve quality • Meet clients’ needs Measure IT Against Firm Values Value to the Firm • Investments needed • Complexity of work • Clarity of requirements • Familiarity with technology • Required behavior changes • Acceptance Ease of Implementation

32. Field of Dreams Field of Gain Project Service Project Project Project Project Service Project Field of Distraction Field of Pain Project Service Project Service Project Project Prioritize Based on Value • Re-focus priorities • Nurture the language of value • Embed value in goals and evaluations Value to the Firm Ease of Implementation

33. Annual Budget Process: Make it an Ally • Stay connected to the value proposition • Start early • Reach out to leadership, practice groups, and business departments • Understand what they want to achieve • Think a lot about how technology can help • Propose and promote solutions • Use strategy prioritization tool to communicate and sell • Use Programs and project charters to focus on benefits

34. Leverage Recognition • Firm naturally takes what it has for granted • External recognition of value can awaken internal value perception • Enter public contests and competitions • Speak and write • Seek out internal testimonials and share them

35. Develop a Communications Plan • Consider branding IT’s systems and services • Crystallize your value proposition into messaging points • Promote awards and testimonials • Create a formal plan to communicate value periodically • Newsletters • Internal meetings • Intranet presence • Client-facing presence • Be prepared for informal opportunities • Rehearse your elevator speech and use it BUT DON’T GO OVERBOARD!

36. Make Value Integral to IT Staff & Operations • Communicate the IT Strategy and value proposition to them • Find opportunities for them to embed value thinking in their work • Listen for client-facing opportunities • Listen for testimonials • Ask them how their projects, services, and activities fit in the “Field of…” matrix • Require a business value justification for every project • Embed business value in annual goal setting and evaluation processes

37. What will value look like next? The New Normal? Temporary Dip? Consider the Future of Value for your Firm

38. Questions?