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ACCA’S 2001 ANNUAL MEETINGADDING VALUE015 Streamlining the Business of the LawDepartmentRobert L. HaigPartnerKelley Drye & Warren LLPRoberta MarcantonioVice President, Field Service ExcellenceSpherion CorporationJames L. MarvinChief Corporate CounselHeller Financial, Inc.Rebecca B. RansomAssistant General CounselRaytheon CompanyThomas L. SagerVice President & Assistant General CounselDuPont CompanyThis material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).Materials may not be reproduced without the consent of ACCA.Reprint permission requests should be directed to James Merklinger at ACCA: 202/293-4103, ext. 326; merklinger@acca.com
ACCA's 2001 ANNUAL MEETINGADDING VALUEFaculty BiographiesRobert L. HaigRobert L. Haig is a partner in the law firm of Kelley Drye & Warren LLP in New York.Mr. Haig has served as president of the New York County Lawyers’ Association. He was amember of the New York State Bar Association’s Executive Committee, the founder andfirst chair of the Association’s Commercial and Federal Litigation Section, and chaired itsCommittees on Federal Courts and Multi-Disciplinary Practice and the Legal Profession.Mr. Haig was the chair of the Committee on the Judiciary of the Association of the Bar ofthe City of New York and also chaired that Association’s Council on JudicialAdministration. He is a member of the House of Delegates of the ABA, a member of theAmerican Law Institute, a Life Fellow of both the American Bar Foundation and the NewYork Bar Foundation, a member of the Departmental Disciplinary Committee of theAppellate Division, First Judicial Department, a member of the New York State JudicialSalary Commission, and a director of the Committee for Modern Courts. Mr. Haig iscochair of the Commercial Courts Task Force to create and refine the CommercialDivision of the Supreme Court of the State of New York.In 1991, Mr. Haig became the only New York lawyer to receive the "Award ForExcellence in Continuing Legal Education" from the Association of Continuing LegalEducation Administrators. On May 7, 1995, the New York State Bar Association’sCommercial and Federal Litigation Section presented Mr. Haig with the Section’s firstannual "Robert L. Haig Award for Distinguished Public Service." The Section has namedthis award after Mr. Haig, and presents it in his name each year.Mr. Haig is the editor in chief of Successful Partnering Between Inside and OutsideCounsel, a book published by West Group in a joint venture with ACCA. He is a memberof the board of editors of Matthew Bender & Co., Inc.’s Federal Litigation Guide Reporter.He is also a member of the board of advisers to Business Laws, Inc.’s Law DepartmentManagement Adviser.Mr. Haig graduated from Yale College and from Harvard Law School.Roberta MarcantonioRoberta Marcantonio is vice president of field service excellence for SpherionCorporation, headquartered in Ft. Lauderdale, Florida. Spherion provides recruitment,outsourcing, and technology services to help companies efficiently plan, acquire, andoptimize talent to improve their bottom line.Ms. Marcantonio’s responsibilities include implementing best practices and metrics tomaximize productivity across all Spherion business units. Her areas of expertise includedeveloping user requirements and standardizing business processes within Spherion’s fieldoperations and corporate headquarters.This material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).2
ACCA's 2001 ANNUAL MEETINGADDING VALUEJames L. MarvinJames L. Marvin is chief corporate counsel and managing attorney at Heller Financial,Inc., a publicly-held middle market finance company with over 1 billion in operatingrevenues and principal operations located in Chicago. As chief corporate counsel, hisresponsibilities include legal oversight of Heller’s corporate legal function, includingcorporate maintenance and securities laws compliance. He also provides legal support forHeller’s capital markets and equity investment activities and for staff groups responsiblefor investor relations, internal audit, marketing, and information technology. Prior to thisposition, Mr. Marvin was the legal services relationship manager for Heller CorporateFinance, Heller’s cash flow and asset-based financing business unit.Prior to joining Heller, Mr. Marvin was a partner in the finance and reorganizationspractice group at Katten Muchin Zavis, a Chicago-based law firm, where his practiceconcentrated in representing commercial lenders in a wide variety of financingtransactions.Mr. Marvin is a member of the board of directors of the Public Interest Law Initiative andprovides pro bono legal services for Deborah’s Place, a Chicago-based nonprofit focusedon providing housing and counseling for formerly homeless women. He recentlyimplemented a formal pro bono program for Heller’s internal legal staff and is a memberof Heller’s Charitable Contributions Committee.Mr. Marvin received a BA from the University of Illinois and his JD from the University ofIllinois College of Law.Rebecca B. RansomRebecca B. Ransom is assistant general counsel, litigation for Raytheon Company. Ms.Ransom oversees the management of all litigation for the company, including selection ofoutside counsel, directing litigation strategy, and controlling costs through Raytheon’sautomated legal matter tracking and reporting system.Prior to joining Raytheon, Ms. Ransom was a partner and associate in the Virginia office ofVenable, Baetjer and Howard. While at Venable, Ms. Ransom practiced in the areas ofcommercial and construction litigation and government contracts.Ms. Ransom is a member of the Public Contract Law and Litigation sections of the ABA.She is actively involved in volunteer work with her church and local community.Ms. Ransom received a BA magna cum laude from the University of Utah and receivedher law degree from the George Washington University Law School.This material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).3
ACCA's 2001 ANNUAL MEETINGADDING VALUEThomas L. SagerThomas L. Sager is vice president and assistant general counsel of the DuPont Companywhere he also serves as the chief litigation counsel. Mr. Sager helped pioneer DuPont’sConvergence and Law Firm Partnering Program.Mr. Sager has served on the board of several organizations including ACCA, the MinorityCorporate Counsel Association, the CPR Institute for Dispute Resolution, the DelawareLaw Related Education Center, and the American Red Cross in Delaware. Mr. Sagerserved as chair of the Delaware Chapter of the American Red Cross. He was honored in1997 with the Lammot duPont, Jr. Memorial Award for outstanding and devoted service tothe community through Red Cross–the highest honor the American Red Cross in Delawarecan bestow on a volunteer. He has also served on the board of overseers of the WidenerUniversity School of Law.Mr. Sager received the ABA’s 2001 "Spirit of Excellence" award, established to celebratethe achievements of minority lawyers and others who actively promote the full and equalparticipation of minorities in the legal profession. He also received an award from ACCAfor his article "DuPont’s Performance Metrics" published in the ACCA Docket. ACCA alsohonored Mr. Sager with a "Recognition of Excellence" for professional accomplishments incorporate practice, personal integrity, and commitment to the advancement of the inhouse practice of law. The Minority Corporate Counsel Association established theThomas L. Sager award in his name; the award was given to him in recognition of hisindividual efforts and achievements to promote diversity in the legal profession. Mr. Sageralso received the 1998 Brundage Award, presented by the Wallace Law Registry,acknowledging outstanding energy, commitment, and dedication to improving the legalprofession.Mr. Sager received his JD from Wake Forest University School of Law andThis material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).4
ACCA's 2001 ANNUAL MEETINGADDING VALUEWELCOMELeveraging smart PMO solutions to minimize risk,while maximizing investmentsEnterpriseProgram ManagementOffice (PMO)This material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).5
ACCA's 2001 ANNUAL MEETINGADDING VALUEProject Management FactsAccording to Gartner Group Research. . . . . . .Over 80% of IT-related projects are:LateOver-budgetLacking functionalityNever delivered. . . . . . .Causes of project failure include:Poor participation from sponsorInsufficient business and user involvementDifficulty in defining work in detailPoor project managementNo clear objectives or requirementsContinual and unregulated changesInappropriate experience and competenceDenial of riskCommon Communication &Information FlowBoard ofDirectorsEndUsersStrategicPlanningC LevelHumanResourcesFinanceDirect ReportsProject ManagersFull-Time Employees & ConsultantsThis material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).6
ACCA's 2001 ANNUAL MEETINGADDING VALUEChallengesExecutive ManagementCompeting in the e-business marketAligning and bridging technology solutions withcorporate goalsStriving to refine and redefine business practicesMaintaining revenues for continued growthRetaining quality resourcesChallengesProject ManagerNeed for regular, consistent, up-to-date reports forprojects, resources and budgets to Senior ManagementSupporting a stated, practiced, and consistent projectmanagement process and methodologyDelivering quality projects quicklyAnticipating problems before they significantly impact aprojectThis material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).7
ACCA's 2001 ANNUAL MEETINGADDING VALUEWhat is your experience?Have you worked with a PMO or Project Office?As a result of Year 2000or a large project As a company initiativeWas it successful or unsuccessful? Was it hard to define?Was it hard to implement? Was it hard to staff?Did it have the right sponsorship? Is it going to last?Enterprise Program ManagementOffice Definition- An organizational approach that serves as ameans for organizing, aligning andimplementing initiatives between business andtechnology.This material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).8
ACCA's 2001 ANNUAL MEETINGADDING VALUEPMO vs. Project OfficeProject Office---Supports and enhancesindividual project managerand large projects or groupsof related projectsProvides project control &support through– Project Plan, Resource &Budget Maintenance– Status ReportingCould run the project(s) dayto-day activitiesProgram ManagementOffice-Reports to the highest level inan organizationProvides liaison betweenBusiness and ITMaintains managerialobjectivityEnforcer of process andmethodologySupport strong projectmanagement processesOur Version ofEnterprise PMO & Project OfficeExecutive CommitteeEnterprise ProgramManagement OfficeProject OfficeProject #1Project OfficeProject #2Project #3Project #4Project ManagerProject TeamThis material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).9
ACCA's 2001 ANNUAL MEETINGADDING VALUEPurpose of an Enterprise PMO- Develop and/or implement a standardmethodology- Act as a liaison between Business and IT- Promote effective project management practices- Implement standard project management tools- Provide accurate and timely information fordecision makingTypical PMO StructureInformationTechnologySenior ManagementEnterprise ProgramManagement Office(PMO)Business AreasSenior ManagementThis material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).10
ACCA's 2001 ANNUAL MEETINGADDING VALUEDo you need a PMO? Do you Know how many initiatives you have? The status ofeach? Expected completion dates? Know what your resources are working on? Use project management tools for trackingclient/server, mainframe, and web developmentprojects? Know how your managers handle multiple initiatives? Know what a project is really going to cost? Have a way to manage scope? Have large projects that are out of control? Know how much you spend on maintenance?Benefits of a PMO- Provides a central point of contact for targetedcompany initiatives- Elevates the level of client leadership byidentifying and providing training, coachingand mentoring- Enhances communication between IT andBusiness- Provides managerial neutrality- Provides a mechanism to elevate issues to theattention of the appropriate levelThis material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).11
ACCA's 2001 ANNUAL MEETINGADDING VALUEBenefits of a PMO (cont.)- Reduced cost and greater effectivenessthrough the implementation of methodologyand promotion of best practices-Incorporates current company best practicesDrives consistent project managementstandards, tools and measures across allinitiatives- Accurate and timely information to supportdecision making- Pulls it all together and adjusts to theenvironmentQuantifiable Value of PMO Efficiencies Turnover Retention "Right" deliverable at the "right" time Proactive rather than reactive Solve problems before they impact a projectThis material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).12
ACCA's 2001 ANNUAL MEETINGADDING VALUEWhat are the Steps?Step #3 - ImplementationStructured Program Management Office orProject Office based on Individual needsStep #2 – Strategy & PlanningRecommendations on areas for improvementto your specific company.Senior Management Buy-inStep # 1 – AwarenessEvaluation of currentenvironment, processes and cultureAwareness Phase12Week 134512Week 234512Week 334512Week 4345Conduct InterviewsReview DocumentationReview Forms andCurrent RequiredDocumentationApproximate Timeline: 2 – 4 weeksThis material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).13
ACCA's 2001 ANNUAL MEETINGADDING VALUEAwarenessInterview MatrixHow Do You Substantiate YourStrategy? Flowchart current process Develop 30-60-90 day plan Set expectations Expert help availableDevelop roles & responsibilities matrix Essential to ensure buy-in Create strategy document with priorities Approximate timeline: 30 – 60 DaysThis material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).14
ACCA's 2001 ANNUAL MEETINGADDING VALUEStrategy/Planning30-60-90 Day PlanStrategy/PlanningRoles & Responsibilities MatrixIs PMO sustainable? Resource commitment is required.This material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).15
ACCA's 2001 ANNUAL MEETINGADDING VALUEImplementation – Tools &Techniques Process Documentation Project Document Library Standard Methodology Standard Project Management Tool Work Request & Approval Process Consistent Project Review Meetings Customer Satisfaction Surveys Communication Plan Training & CoachingImplementationSample "As Is" Process Flow DiagramSponsorPlanImplementationProjectMgrs.AFP Processing& alk ThruORT writes up bugs (RM prioritizesDevelopmentDesignDocumentCodeORT beginswritingtest casesfrom designdocumentsImplementationSRs)Testing Work with markets to schedule Network Deployment Download Schedule Other downtime projects User training Product Support gets involved andthis pointUser AcceptancePostImplementationSupportPostMortem Post Implementation User Validation ApprovalPurpose: Document how processes currently workand identify areas for improvement.This material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).16
ACCA's 2001 ANNUAL MEETINGADDING VALUEImplementationSample Project Plan TemplatePurpose: It has to be managed like any other project.ImplementationSample Project Review Status ReportPurpose: Standard, consistent reporting is key.This material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).17
ACCA's 2001 ANNUAL MEETINGADDING VALUEWhat has to Come from YourCompany Recognize that change is neededBe ready to receive a PMO and make long-term commitmentSenior Management Buy-inDetermine cost to continue to do business poorlyPMO SponsorSomeone who can speak for both IT and BusinessClear communication of direction and deliverablesThe Realities ofImplementing a PMO- Should not be a large group- Reports to the highest level in an organization- Liaison between Business and IT- Maintains managerial neutrality- Enforcer of process and methodology- Support strong project management processes- Approximate implementation timeline 6 monthsto 2 yearsThis material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).18
ACCA's 2001 ANNUAL MEETINGADDING VALUEAbsolute Requirements forSuccess Senior Management Buy-in PMO Sponsor who is willing to removeobstacles that impede progress Access to a variety of resources across theorganization to interview and document process Access to standard forms and templates forreview Empower the PMO to be accepted as a peer byproject management Communication of a clear organization-wideunderstanding of the role PMO is to playWhat You Can Turn to OutsideExpertise to Handle Assessment- Unbiased- Independent reviewRecommendations- Based on experience of implementingPMO's at companies similar in sizeImplementation- Best Practices easily accessible- Already know what not to doThis material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).19
ACCA's 2001 ANNUAL MEETINGADDING VALUEQualifications Experienced in implementing PMOs and ProjectOffices We believe in strong methodologies & processes Spherion's Methodology Process Continuum – Spherion Project MethodologyTesting Methodology (eVALI/TEST PRO)Xceed/Spherion Joint MethodologyDeliverable Quality Method (DQM) We ensure that our consultants are trained tosupport our methodologies and processesOur ConsultantsExtensive Interview ProcessSkill Profile IncludesMethodology References Checked Technical Interview Process Definition & Improvement Marketing Interview Financial Analysis Management Interview Project Management Tools &TechniquesThis material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).20
ACCA's 2001 ANNUAL MEETINGADDING VALUEA Success Story The HoneyBaked Ham CompanyWhy PMO?- Enhanced communication, participation andaccountability between business andtechnology- Reduced project risks, increased projectsuccess rates and consistent quality- Real-time and accurate management reportsto support the decision-making process- Proven and repeatable project managementstandards and methodologiesThis material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).21
ACCA's 2001 ANNUAL MEETINGADDING VALUECommon Communication &Information FlowBoard ofDirectorsEndUsersStrategicPlanningC LevelHumanResourcesFinanceDirect ReportsProject ManagersFull-Time Employees & ConsultantsInformation Flow with a PMOEndUserProcess &MethodologyImplementationProjectDatabaseC LevelFinanceProjectBudgetsBoard cPlanningHumanResourcesDirect ReportsProject ManagersFull-Time Employees & ConsultantsThis material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).22
ACCA's 2001 ANNUAL MEETINGADDING VALUEWhich one do you prefer?Board ofDirectorsEndUsersStrategicPlanningC LevelWith a PMOHumanResourcesFinanceDirect ReportsEndUserProject ManagersDatabas CeFull-Time Employees & ConsultantsFinanceWithout a PMOBoard ofDirectorsProcess HumanResourcesDirect ReportsProject ManagersFull-Time Employees & ConsultantsThis material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).23
ACCA's 2001 ANNUAL MEETINGADDING VALUEOffice of the General CounselRebecca B.RansomAsst. General CounselLitigationRaytheon Legal – Then Out of control outside expensesMatters were not budgeted independentlyOver 1200 "approved" firmsNo tracking of legal invoices / invoices not paid ontimeRelied on Finance Dept. to provide burn rateinformation on Legal Dept. budgetsDivision Mgt. did not get timely information regardingtheir liabilitiesThis material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).24
ACCA's 2001 ANNUAL MEETINGADDING VALUERaytheon Legal – Now All outside counsel provide quarterly budgets"Approved" firms cut from 1200 to 400Negotiated pilot "Preferred Provider" agreementRe-vamped "Outside Counsel Policy"Upgraded case management databaseRedesigned the process for the payment of legalinvoicesReduced outside legal service expenses from 120Mto 75M (a 35% bottom line savings)CaseTrack – Matter Mgt. SystemThis material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).25
ACCA's 2001 ANNUAL MEETINGADDING VALUEBudgeting All outside counsel submit a yearly budget per matter,by quarter Raytheon Managing Attorney (RMA) involvement Alternative fee arrangements considered Quarterly budget updates Litigation matters also require case plan, early caseassessment Business unit management buys into the budgetedamount and holds RMA to budget RMA actively monitors budget Hands on involvement CaseTrack's invoice to budget comparison Monthly meetings are held at each level to ensure thatinformation flows back to the client"Show me the Metrics"Legal Cost TrackingRisk PrioritizationCost ReductionThis material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).26
ACCA's 2001 ANNUAL MEETINGADDING VALUE"Show me the Metrics" Cont.o CaseTrack matter mgt. system tracks total legal costs,ooooincluding legal expenses and damages andsettlementsCaseTrack generates reports that accurately reflectactual and projected costsHistorical data provides basis for legal riskprioritizationLegal Dept. communicates financial implications oflegal risks to Business unit leadershipLeads to risk prevention measures"Show me the Metrics" Cont.End Result. . .Legal CostsClient SatisfactionThis material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).27
ACCA's 2001 ANNUAL MEETINGADDING VALUESix Sigma and Legal Invoice payment processesAdministrative servicesRecord retentionLegal reference materialPatent processesCorporate Sec'y functionReal Estate Portfolio Mgt.Utilizing legal E-Commerce comQuickview.comOn line West Law billing report This material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).28
ACCA's 2001 ANNUAL MEETINGADDING VALUELegal's SQL databases CaseTrack Strategen OMNIS Aurigin World RecordsThis material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).29
ACCA's 2001 ANNUAL MEETINGADDING VALUESix SigmaThomas L. SagerVice President andAssistant General Counsel2001 Annual MeetingAmerican Corporate Counsel AssociationSan Diego, CaliforniaOctober 15-17, 2001Miraclesf ScienceSix Sigma6σThis material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).30
ACCA's 2001 ANNUAL MEETINGADDING VALUEWARNING: Don’t try this athome!Off limits:σ6This material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).31
ACCA's 2001 ANNUAL MEETINGADDING VALUEWhat is Six Sigma?σ Greek letterrepresenting aStandard DeviationSIX SIGMA IS A WORLD CLASS STANDARDDefect LevelsSigma6 sigma5 sigma4 sigma3 sigma2 sigma1 sigmaDefects per Million3.42336,21066,807308,537 Typical Manufacturing690,000 Typical TransactionThis material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).32
ACCA's 2001 ANNUAL MEETINGADDING VALUEWhat’s Possible?If we are at 3.5 sigma30,000 defects per millionorcosts of 6.0 billion (waste)If we improve to 5 sigma200 defects per millionorcosts of 3.2 billion (waste) 1.7 Billion ATOI StakeFinancial GoalsWe will deliver Six Sigma Projectswith PTOI rate of: 100MM in 1999 1B in 2000This material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).33
ACCA's 2001 ANNUAL MEETINGADDING VALUEResources Champions—lead deployment, define projects, remove barriersMaster Black Belts—advanced training and skills—train and mentor black belts and green beltsBlack Belts—respected technical individuals - full time on 6 sigmaGreen Belts—part time involvement; potential future black beltsTeams— teams led by black belts—measure, analyze, improve, and control (MAIC)Educating the TroopsConsiderations Is there a process in place? Are there controls or standard operating procedures? Is there duplication, waste, non-value added? Do you question why a certain step or action is taken?Keep in Mind When evaluating a prospective project the focusof the Black Belt is on performance of a process noton the performance of individualsThis material is protected by copyright. Copyright 2001 various authors and the American Corporate Counsel Association (ACCA).34
ACCA's 2001 ANNUAL MEETINGADDING VALUEIncentives for the TroopsPeople, Projects and Rewards Six Sigma Projects are assigned to ateam led by a Black BeltEach person working under the guidance of aBlack Belt on a Six Sigma project is a memberof that teamContributing team members on a successful Six Sigmaproject are candidates for awards under the Rewardand Recognition ProgramBOTTOMLINE: 25% of Variable Comp is based onour meeting Six Sigma goals in 2000Six Sigma in LegalHow it Works Project-orientedTransactional vs. ManufacturingDefine,
Rebecca B. Ransom Rebecca B. Ransom is assistant general counsel, litigation for Raytheon Company. Ms. Ransom oversees the management of all litigation for the company, including selection of outside counsel, directing litigation strategy, and controlling costs through Raytheon's automated legal matter tracking and reporting system.
