Archive: January, 2010
Last week there was a sell off of Wall Street and Banking stocks because the market fears that new Obama-administration regulation and oversight is going to reduce revenue and profits. The Wall Street Journal tells the sell-off story (New Bank Rules Sink Stocks) and the looming political battle (Obama vs. Wall Street) in case you missed all the fun.
As with all IT projects, there are a number of sure-fire ways to send a promising document assembly initiative off the rails. And that’s regardless of how good the technology is.
In the coming months, you’re going to see posts on this blog from some “new” authors and hopefully, welcome back some old ones. We took a look around the company and realized that we have a lot of experts with varied areas of specialty within Exari.
A recent General Counsel Roundtable (GCR) analysis found that the best ways to control external legal spend are (in order of effectiveness):
- Fixed fees (a set fee “for all work in a given subject area for a period of time”)
- Risk sharing (bonuses/holdback for successful/unsuccesful matter completion)
- Flat fees (a set fee for a particular matter)
In other words, to manage costs law departments need to align fee arrangements with desired outcomes rather than with law firm inputs (billable hours). Common sense? Apparently not. It’s certainly not how law departments pay for most of their external legal work.
Sales contracting is an example of a cross-functional business process; one that involves multiple departments, often in different business units with conflicting agendas (and separate budgets). Sales will do whatever it takes to close the deal by the end of the quarter. Pricing’s sole focus is on profit margin. And Legal needs to avoid risk. Meanwhile, no one’s responsible for the end-t0-end process.