Last week the Association of Corporate Counsel (ACC) announced the 2012 ACC Value Champions, 12 winners of awards that recognizes “effectively driving value by cutting spending, improving predictability and achieving better legal outcomes.” 

Amar Sarwal, VP and Chief Legal Strategist at CC, in his Top Ten Takeaways From Our First Value Champions Program blog post, synthesizes what we can learn from these early adopters of better ways of practicing law. My favorites in his top ten are:
-“The value conversation is happening everywhere.”
-“Fixed fees can drive the value equation”…. “But value is more than just fixed fees”
-“CEOs and CFOs care.”

The landing page 2012 ACC Value Champions lists the dozen winners and link to a page about each. In the table below, I highlight seven of the winners

Award Winner

Award Tagline

GOAL

OUTCOME

GLAXOSMITHKLINE

Committed Leadership Combines with Technological Innovation

Move “all outside counsel assignments throughout the world to value-based fee (VBF) arrangements”. 

-“By the end of 2011, more than 68 percent of GSK’s external spend was through VBFs, resulting in extremely significant savings”. 
-Reverse auctions to create fee competition; RFIs; metrics.
-Technology: electronic reverse auctions
-17.5% savings

LUCCHINI S.P.A.

Improving Decision Making through Better Legal Support

Reduce spending, budget reliably, improve efficiency, control matters

– Developed T&Cs for law firms, banned certain law firm charges, required advance quotes and uniform invoices
-Technology: outside counsel data reporting system and process automation
-35% savings

MEDTRONIC

Comprehensive Transformation Generates Impressive Metrics

Comprehensive transformation, including preferred providers, RFPs, AFAs, new process + tech, metrics

-Reduced number of outside firms from several hundred to 40
-Numerous alternative fee arrangements
-Technology: new matter management and e-billing system and dashboard with metrics
-40% savings over 2 years

RBC CAPITAL MARKETS AND MORGAN, LEWIS & BOCKIUS LLP

Managing for Continuous Improvement

Move to value based fees

-Fixed fees including paid monthly for life of matter, with risk sharing, and with caps
-35% savings since 2010

ROCKWELL COLLINS AND SEYFARTH SHAW LLP

Lean in the Legal Department? Yes!

Predictable fees, consistency of processes, and a more efficient team

-Rockwell Collins–Seyfarth Lean consulting team had completely reengineered how the Law Group selects, engages, manages, and evaluates outside counsel.” 
-Outside counsel matters >$50k are all AFA (with success fees)
-RFP process creates competition
-$32.6M saved

THE HOME DEPOT

Fixed Fees, Efficiency Combine to Slash Spending

Move to fixed-fee and retainer arrangements

-“reduced annual legal fees by 45 to 55 percent since the start of the program in 2008. Additionally, the legal budget is more predictable”
-“reduced annual legal fees by 45 to 55 percent since the start of the program in 2008. Additionally, the legal budget is more predictable”

TYCO INTERNATIONAL & SHOOK HARDY

Flat-Fee Arrangement Benefits Both Client and Firm

“reduce the company’s exposure and control costs while protecting quality service, responsiveness, and results”

-Firm shadow bills with ABA task codes to identify efficiencies
-Apply early case assessment to reduce case count, cycle time, and cases filed
-Over five years, case docket reduced 55%, new case filings declined 65%, and case cycle time shortened by 40%