To Law 2 0 and Beyond The Shape

To Law 2. 0 and Beyond The Shape of Things to Come Jeffrey W. Carr FMC Technologies ™ Innovative Technologies, Creative Solutions

Or. . . ™ Innovative Technologies, Creative Solutions

Total Legal Expenses Increased -- Now Trending Down ™ But Decline as % of Sales Innovative Technologies, Creative Solutions 3

Performance Benchmarking Category FMC Technologies Mean Median Exp/$Rev 0. 284% 0. 865% 0. 497% Int/$Rev 0. 061% 0. 215% 0. 131% Ext/$Rev 0. 222% 0. 609% 0. 302% Lit/$Rev 0. 117% 0. 297% 0. 214% IP/$Rev 0. 083% 0. 095% 0. 11% Total Legal/$Rev 0. 330% 1. 174% 0. 809 Avg In-House $/Hr $167 $212 $197 Avg Ext Cnsl $/Hr $250 $400 $385 Attny/$B 2. 86 6. 78 6. 85 Legal Heads/$B 3. 96 8. 92 6. 66 ™ Innovative Technologies, Creative Solutions 4

Our Vision • We are not lawyers. • We are business people with legal training forged into a cohesive legal team committed to the success of FMC Technologies through focused effectiveness, relentless efficiency, constant improvement, creative disruption and unyielding integrity. ™ Innovative Technologies, Creative Solutions 5

Our 1º Law Tool Box ™ • • • Integrated matter management – Serengeti Performance based pay – ACES Early case assessment – Decision Pro Streamlining process – P-Card, Serengeti, Sharepoint Driving Performance – Meaningful metrics & Snapshot Delivery/Execution – Project & monthly MPR Leveraging internal knowledge – Sharepoint Leveraging external knowledge – Legal On Ramp Leveraging resources – “Cook Book”; Guidelines Leveraging time/space – Webex; Telepresence Continuous Improvement – L 2 A 2 ™ Innovative Technologies, Creative Solutions 6

The Matrix I Urgent Important III Urgent Not Important ™ II Not Urgent Important IV Not Urgent Not Important Innovative Technologies, Creative Solutions

The Circle Lessons Learned Manage/Resolve Efficiently ™ Innovative Technologies, Creative Solutions Avoid

The Arrow Denial Anger Anarchy: Old style, silos, rules don’t apply to law Cost focus: Supply chain management Resignation Acceptance Value Focus: Alliances, Partnering Aggregated buy ™ Cost Focus: Reduce number of firms Best practices Innovative Technologies, Creative Solutions Healing Value Extraction: Leverage

The Atom Experts Lawfirm 1 Lawfirm 3 Professional Service Providers In-house counsel Lawfirm 2 Legal Content/ Fact Holders. Research Provider ™ Innovative Technologies, Creative Solutions

The Pyramid and the Funnel $ Partners Associates vs. Document Processors Volume Centric Focus on Hours or $/page ™ Innovative Technologies, Creative Solutions Value Centric Focus on leverage or key info

The Arrow – Redux Marginal costs of delivery reduce Bespoke Standardised Hourly billing Systematised Fixed fees Source: R Susskind – “The End of Lawyers? ” ™ Packaged Innovative Technologies, Creative Solutions Commoditised Commodity pricing, tending towards zero

The Cloud Customer/Client In-house counsel Lawfirm 1 Lawfirm 2 Experts Legal Content/ Research Provider Professional Service Providers Fact Holders ™ Innovative Technologies, Creative Solutions

The Matrix Revisited I Advocacy Counselling III IV Process ™ II Content Innovative Technologies, Creative Solutions

The Pyramid – Stacked AFA’s Recent Risked Future Risked Hourly Rates/ Efficiency Expectations Hourly Rates No Budget Implications Budgets with Implications Fixed Fees ™ Innovative Technologies, Creative Solutions Budgets with Implications Fixed Fees

The AFA Table • Variable (aka Non-Transformational) • Value (aka Transformational) – Discounts • Fixed Fees – Blended Rates • Budgets with Implications – Freezing Rates • Risk Sharing – Budgets w/o Implications ™ Innovative Technologies, Creative Solutions • Efficiency Expectations

The Arrow -- Again Decide Discuss Design Define Deploy • We need to reconnect legal services to value • What does that mean? • What do we want? • Who must be involved? • Value-focused tools • Platforms • Bridges and alliances • Continuous improvement • • • What do we do? • How do I start? • Multiple vectors • Mentors and Sensei ™ Innovative Technologies, Creative Solutions Goal Measurement Re-discuss Refine

The FMC Litigation Value Challenge ™ Innovative Technologies, Creative Solutions

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The Challenge – Phase I ™ Innovative Technologies, Creative Solutions

The Challenge – Phase 2 ™ Innovative Technologies, Creative Solutions

The Challenge – Phase 3 • 33 firms invited to use Twitter and send a “Tweet” – 140 characters or less – What makes you different? – Why should we meet you? • 16 firms invited to “Wow not Woo” Face of Face Meetings – Format up to firm – Memorable moments • • ™ Poem Video of the making of the tweet Role play of intake meeting Process mapping Innovative Technologies, Creative Solutions

The Decision • The Team • The Structure (TBD) – Beirne Maynard – Fulkerson – Littler – Seyfarth – Summit – Sutherland – Valorem – Womble ™ Innovative Technologies, Creative Solutions – Plan A • JV to leverage capability – Plan B • Shark Tank (mini-RFPs)

Your Future This? Or This? ™ Innovative Technologies, Creative Solutions 24

“If you dislike Change, you’re going to dislike Irrelevance even More. ” US Army Chief of Staff, Gen. Eric Shinseki ™ Innovative Technologies, Creative Solutions 25