The Nuts and Bolts of Legal Project Management for In-House Counsel FM Panelists: Guest Panelist: Sean Morley Steven Rosenhek Peter Gutelius (RBC) Toronto Fasken Martineau Symposium May 24, 2012 What is Legal Project Management? FM Panelist: Sean Morley Toronto Fasken Martineau Symposium May 24, 2012 What is Legal Project Management? “Legal Project Management adopts business management techniques to the legal profession to increase client value” 3 1 What is Legal Project Management? • Practice management tool for in-house counsel to manage projects and drive internal efficiencies • Practice management tool for in-house counsel to monitor and assess external counsel, enhancing value and maintaining a budget • Practice management tool for external counsel to provide better value services to clients 4 What is Legal Project Management? • Most lawyers, whether in-house counsel or practicing with a firm, already engage in some form of Legal Project Management: • Establishing a budget • Managing a team to achieve specific tasks • Managing a schedule 5 What are the Key Objectives of Legal Project Management? • Properly implemented and executed Legal Project Management can deliver: 1. More predictable costs 2. Improved quality 6 2 What are the Key Objectives of Legal Project Management? • Properly implemented and executed Legal Project Management can deliver: 3. Better targeted services 4. Improved communication 5. Reduced risk 7 What are the Key Objectives of Legal Project Management? • All ultimately with the objective of delivering better VALUE as determined by the client 8 Key Components of Legal Project Management FM Panelist: Steven Rosenhek Toronto Fasken Martineau Symposium May 24, 2012 3 1. Define Objectives and Scope Objectives: • Defining the desired project outcome, based on client’s true goals/ “success” • Identify legal and business problems • Identify realistic/possible/acceptable outcomes • Lawyer’s role 10 1. Define Objectives and Scope (cont’d) Scope: • What is included/not included • “Iron Triangle”: • Wants v. needs • Priorities may change SCOPE COST TIME 11 1. Define Objectives and Scope – Best Practices • Listen! • Scope document: • Objectives • Scope of work • Decision makers • Timelines/deadlines 12 4 1. Define Objectives and Scope – Best Practices (cont’d) • Phases • Key assumptions • Contingencies • Exclusions 13 1. Define Objectives and Scope – Best Practices (cont’d) • Buy-in: • Circulate scope document to client for acceptance • Circulate and discuss with team • Incorporate into subsequent communications • Flexibility to adjust scope/time/budget 14 2. Plan and Schedule the Activities Project planning: • Break down project into smaller, manageable parts-usually organized into phases • Schedule/timetable • Budget • Staffing • Risks/assumptions 15 5 2. Plan and Schedule the Activities (cont’d) • The document: • Gantt chart/template/ “Waypoint” • All major tasks/activities in chronological order with responsibilities assigned, and scheduled in terms of days/weeks/months • Can incorporate UTBMS or other client management systems • Living document 16 2. Plan and Schedule the Activities (cont’d) • Effective work breakdown document achieves: • thinking through all aspects of project • preventing work from slipping through cracks • facilitating communications • helping prevent unnecessary changes 17 2. Plan and Schedule the Activities (cont’d) • focusing the team’s experience on tasks • providing solid basis for estimating costs • ability to adapt to future projects 18 6 2. Plan and Schedule the Activities – Best Practices • Small, discrete tasks should be manageable, not overlap • Work breakdown should not be too detailed or complex • “8/80” Rule • Create complete schedule with deadlines • Team members commit to deadlines • Tasks prioritized 19 2. Plan and Schedule the Activities – Best Practices (cont’d) • Set internal progress measures and meeting/report intervals • Discuss with team and client sequence, schedule and budget • Team members commit to deadlines • Incorporate contingency factors • Incorporate assumptions (general/specific) • Assess costs and schedule against baseline 20 3. Assign Tasks and Manage Team • Goal is to manage teams more efficiently • Assign tasks to appropriate level of professional • Choose best professional for the work 21 7 3. Assign Tasks and Manage Team – Best Practices • Pick level of professional, then the individual • Assign primary responsibility to specific individuals • Review tasks with team members • Re-assign when necessary • Keep the team involved from the start 22 4. Plan and Manage Budget • Goal is to predict and control legal costs • Estimate time required to complete tasks 23 4. Plan and Management Budget – Best Practices • Don’t under-estimate • Use previous projects as benchmarks • Reduce costs by improving delegation • Apply “certainty factors” • Review budget and expectations with team 24 8 4. Plan and Management Budget – Best Practices (cont’d) • Track and communicate performance • Check work against budget • Be proactive if exceeding budget • Be prepared to discuss increase of budget where necessary 25 5. Manage Risks • Goal is to increase chances that work will be done on time and within budget • Identify and analyze legal/non-legal risks 26 5. Manage Risks – Best Practices • Do early risk analysis • Account for variability of unanticipated tasks • Identify the risks, their likelihood/consequences • Develop strategies to avoid/mitigate/accept/transfer risk • Resolve problems without delay • Manage client expectations – no surprises! 27 9 6. Manage Quality • Ensure team works together to achieve successful completion • Be prepared to make adjustments based on relationship between cost, schedule and quality • Needs more attention where schedule changed/budget cut • Pay attention to “critical path” 28 6. Manage Quality – Best Practices • Look for warning signs • Work together and keep team informed • Be vigilant when over budget 29 7. Communication • Understand client needs, priorities (general and specific) • Keep client informed 30 10 7. Communication – Best Practices • Give client what it wants: face to face meetings/ periodic and/or regular reports/extranet • Monitor work performed by team members • Ask client for feedback • “Lessons learned” session 31 8. Manage Change • Changes are inevitable • Develop process to respond to change • May need to go back to client to negotiate change of scope 32 8. Manage Change – Best Practices • Understand full impact of change on project resources/ time/costs before agreeing to it • Changes that require more funding v. those that can be accepted without funding increase • Both team and client should understand impact on project 33 11 Concluding Thoughts • Toolbox – use what is required • Keep it simple • Good communication is key • It’s worth the effort! 34 Legal Project Management An In-House Perspective Fasken Martineau Symposium May 24, 2012 Peter Gutelius Assistant General Counsel Royal Bank of Canada Legal Project Management Why? 36 12 Why? 1. Planning 2. Metrics 3. Expectations 4. Communication 5. Value 37 1. Planning - using a project management tool requires a consideration of the process - identification of the resources - time frame for the activity - an opportunity to talk internally and externally about the objectives 38 2. Metrics - metrics allow in-house counsel to evaluate, compare and manage files - creation of a library of information setting a foundation for making recommendations internally or providing instructions externally - helps answer the “hard” questions: - How much will it cost? How long with it take? Which of my executives will have to be involved? What does success look like? 39 13 3. Expectations - you have a plan - you have identified milestones - you are able to give your business partners a clear picture of what to expect - you and your external counsel are in sync - you have an opportunity to manage expectations 40 4. Communication - consistently referenced as one of the most important factors in managing … almost anything - the development of a project plan sets a point in time to engage in a discussion about the retainer and gives you the framework for the discussion - it’s an opportunity to effectively manage 41 5. Value Often cited, rarely defined - cost? results? internal impact? future benefit? development of “trusted advisor”? makes me look good? It depends …. 42 14 5. Value (continued) - It can help in-house counsel and external counsel identify and create value file by file or across a relationship - It can help in-house counsel manage staff, allocate resources, reduce surprises - It can also mislead 43 5. Value (continued) - Legal Project Management is not the destination, it’s a tool - consider the most common approach: - identify the steps usually followed identify the person who usually performs the activity identify the amount of time usually expended calendar the events cost the time allocate the resources 44 5. Value (continued) What’s missing? - critical review of the what, by whom, for how long? - populating a project plan with historical data assumes that the management of a file was historically efficient 45 15 5. Value (continued) - ask why an activity (or more likely its component parts) is necessary - question whether the person performing the activity is the right person (and this does not mean push work to the lowest cost individual) - decide whether the work is consistent with the objective or is necessary to achieve the objective 46 5. Value (continued) - stop thinking “budget” and start thinking “plan” - value from in-house counsel is as important as value from external counsel - value will be the result of achieving the desired outcome and being able to demonstrate that you managed the process while balancing cost, risk and results 47 Sean Morley +1 416 865 4362 [email protected] Steven Rosenhek +1 416 865 4541 [email protected] Peter Gutelius +1 416 974 3435 [email protected] For this accredited session, please ensure you sign the attendance sheet located outside the room! 16