1
GELRT =
 Global External Legal Relations Team (GELRT’s) Mission:
Dramatically change the paradigm by which GSK pays for legal services
 Move away from hourly-rate system
– System provides disincentive for cost efficiencies
 Move towards win/win Value-Based Fee Arrangements (VBFs)
Results of VBF Initiative
 Results
– In 2008, less than 3% of GSK external spend was through VBFs
– By close of 2015, 84% of GSK’s external spend was through VBFs
– Number of VBFs in 2015 was 348, up 14Xs the total number in 2009 (25), the
first year of the GSK Legal VBF initiative
4
Number of VBF Processed by GELRT Annually
(2009-15)
350
300
250
200
150
100
50
0
AFA Total
2009
25
2010
53
2011
144
2012
164
2013
209
2014
329
2015 (YTD)
348
GSK’s Outside Counsel Selection Initiative
or
OCSI
OCSI: How It Works
GSK
In-house counsel

Prepares request
template, selects at
least three outside
counsel firms

Analyzes mini-RFI
responses and
recommends firm for
Practice Group head
approval
Score
Card-
Grade
Firm X
5
Firm Y
3
Firm Z
4
Request Form –
Litigation Matter
Firm X
Firm Y
Outside Counsel

Procurement
Receives template
and distributes it to
selected outside
counsel
Firm Z
E-Sourcing Room
RequestForm
Form- –
Request
Request
Form Matter
Acquisition
Acquisition
Number
Price
Proposals–
Acquisition
Number
Firm
Litigation
FirmXX Matter
Firm X
Description
of
Firm
FirmYYY
Firm
Proposed
Team
Firm
FirmZZ with
Experience
Firm Z
Opposing Counsel
Trial Experience of 1st
and 2nd chairs , etc.


Receives mini-RFI and
provides data to inhouse counsel;
ensures matter
assumptions are
uniform; runs online
sourcing room event
VP & Assoc. GC (with Procurement)
Review and approve recommendation;
Prepare AFA Engagement Letter

Selected outside
counsel firms (at
least three)
complete and
return mini-RFI
Firm X
Firm Y
Firm Z
Feedback provided to each firm
OCSI Results
• 119 OCSI events conducted to date
• 127 firms have been trained and submitted proposals to date
• Total Estimated Savings: $65.5 Million (Budget to Final Offer); $39 Million (Initial
to Final Offer)
• OCSI Savings are a subset of overall savings
8
Revolutionize how
outside counsel
engagements are
priced/valued ...
by standardizing task-based
data analytics to better predict
the cost/value of legal
engagements.
The idea is to find a way to
aggregate/ analyze/ benchmark
fee data across companies/
industries in a standardized way
to produce data sets with high
confidence levels and predictive
value.
9
ACC’s membership includes a diverse mix of more than 35,000
in-house lawyers who represent more than 10,000 companies
in 85 countries worldwide.
10
The Association of Corporate Counsel is pleased to introduce a home
exclusively for corporate legal operations professionals – a memberdriven organization delivering benchmarking and collaboration
opportunities, resources, and a unified voice to advance and support this
critical business function.
11
12
Formed New Working Group for
AFA Metrics and Analytics
13
What is Needed For Progress
• Starting Point
• Standardized, “Fit For Purpose” Coding
• Critical Mass of Clients
• Cooperation from Law Firms
• Systematic approach to Data Capture
• Time
14
GSK – Legal Project Management – Create/Update the Legal Matter Project - Tasks
Dropdown List of Templates
Task
ASCENT could auto-assign template based
on matter type (or other field value).
Early Case Assessment Phase
Approved Fees
Updated Actuals
# Units Unit Cost Total
Factual Research and Assessment
Witness Interviews
Review of Key Documents
Legal Research and Assessment
Preparation of an ECA Report and
Presentation to Client
# Units Unit Cost Total
4
$2,500
$10,000
0
0
$10,000
4
$2,500
$10,000
0
0
$10,000
4
$2,500
$10,000
0
0
$10,000
4
$2,500
$10,000
0
0
$10,000
4
$2,500
$10,000
0
0
$10,000
Post-ECA – Preliminary Motions Phase
4
$2,500
$10,000
0
0
$10,000
4
$2,500
$10,000
0
0
$10,000
Removal Paper
4
$2,500
$10,000
4
$2,500
$10,000
0
0
$10,000
Initial Disclosure
0
0
Fact/Legal Investigation
Initial Pleadings / Discovery
If there are sub-tasks, the parent task becomes readonly and the sub-tasks are summarized in the parent.
Law Firm updates Actuals units and unit cost, system
calculates Estimate and Actuals Totals
© 2016 Copyright - doeLegal, Inc.
$10,000
Progress
4
Status
User selects the Green, Yellow, Red icon.
Select Project Task Template:
Create/Update
Project Tasks
Template
GSK – Legal Project Management – Project Status
Project Status
224422 – Sample Matter for Project Status Page
Project Start: April 1, 2016
Project Summary:
Project End:
Original
Agreed
Fee
Vendor – Bunker & Bunker
Current Status:
Life Of Matter
Revised
Fee
Invoices Approved
ABA Total / Await Approval
(create two columns)
Task Statuses
Total Total
Phases Tasks
NS
6
47
8
2
0
37
$ 800,000
1
5
4
0
0
1
$ 637,625
$ 800,000
1
9
1
1
0
7
Post-Preliminary Motions
MSJ Phase
$ 637,625
$ 800,000
1
14
0
0
0
14
Pre-Trial Phase
$ 637,625
$ 800,000
1
11
0
0
0
11
Trial Phase
$ 637,625
$ 800,000
1
2
0
0
0
2
Appeal Phase
$ 637,625
$ 800,000
1
5
0
0
0
5
$ 637,625
$ 800,000
1
1
0
0
0
1
$2,550,500
$3,200,000
Early Case Assessment
$ 637,625
Preliminary Motions
$2,550,500
$175,000
$50,000
Phase Summaries:
Ongoing Settlement
Negotiations
If invoice detail is linked to project tasks, ABA and Invoice figures will be available for each phase and task – above is not linked to invoice detail.
© 2016 Copyright - doeLegal, Inc.
GSK – Law Firm Scorecards – GSK & Law Firm Attorneys Complete Scorecards
Law Firm Scorecard
224422 – Sample Matter for Project Status Page
GSK Attorney:
Jones, Arthur
Scorecard Template:
Law Firm Attorney:
Shaughnessy, Michael
DR & P
KNOWLEDGE
Low
1
2
Average
3
4
High
5
N/A
Understanding of GSK’s Strategic and/or Business Objectives
Expertise in Subject Area
Overall Quality of Team/Staffing Appropriate for Project
EXPERTISE
Low
1
Overall Written Work Product, Briefing Quality
Legal Advice
Continued involvement of team proposed by Firm (eg, Lead
Attorneys, Associates)
Discovery Quality
Continued…
© 2016 Copyright - doeLegal, Inc.
2
Average
3
4
High
5
N/A
GSK – Law Firm Scorecards – Law Firm Scorecard Reports / Analytics
Group
Number of
Scorecards
Total
Matters
Evaluated
GSK Managing
Attorney
Assessments
Law Firm
SelfAssessments
Firms
DRP
48
24
24
24
Firm A, Firm B, Firm C, Firm D, Firm E, Firm F, Firm G, Firm H,
Firm I, Firm J, Firm K , Firm L
GP
8
4
3
5
Firm A, Firm D, Firm L, Firm M
BDTT
19
10
15
4
Firm C, Firm D, Firm E, Firm F, Firm G, Firm H, Firm I, Firm J, Firm
K
Totals
75
38
42
33
© 2016 Copyright - doeLegal, Inc.
Firm A, Firm B, Firm C, Firm D, Firm E, Firm F, Firm G, Firm H,
Firm I, Firm J, Firm K , Firm L , Firm N, Firm P
Analyzing the Data
COST COMPETITIVENESS
High
HIGH
VALUE
FIRMS
Firm 2
Firm 3
Firm 6
Firm 4
Firm 5
Firm 1
Low
Low
PERFORMANCE
High