WMACCA Signature Luncheon December 18, 2014 IN-HOUSE INNOVATION Learning From One Another Presented by Doris Gilliam and Larry Cohen, AARP Scott Chaplin, Alliant Techsystems Inc. (ATK) Jonathan Coleman, Co. Star Group Inc. Mark Nackman, General Dynamics Advanced Information Systems
AARP Office of General Counsel: Business Optimization Tactic The Self-Service Model Doris Gilliam, Esq. Senior Attorney AARP Office of General Counsel DDickens@aarp. org Larry Cohen, MBA Client Services Manager AARP Office of General Counsel LCohen@aarp. org
AARP® Background Who We Are AARP is a nonprofit, nonpartisan organization, with a membership of more than 37 million, that helps people turn their goals and dreams into real possibilities, strengthens communities and fights for the issues that matter most to families such as healthcare, employment security and retirement planning. AARP Office of General Counsel The mission of the Office of General Counsel (OGC) is to maximize the ability of AARP to carry out its tax-exempt mission while remaining in legal and ethical compliance and maintaining AARP’s reputation for trustworthiness and integrity. The legal department in the AARP Office of General Counsel consists of 11 lawyers, two non-legal staff who handle a variety of client assistance, training, reporting and budgeting functions, and two legal secretaries, for a total of 15. The lawyers are all generalists but each attorney has at least one area of focus such as intellectual property, nonprofit tax, charitable fundraising, privacy, or employment law. Real Possibilities is a trademark of AARP.
Problem Statement Context: MOU review approval requests are initiated by staff at any number of our 53 state offices representing about 250 clients. Those requests comprise nearly 60% of state office-based requests to OGC. Within a year’s time, tracking metrics showed an overwhelming 494% workload increase in total requests up to a high of 1, 711 by 2013 year end (currently 2, 101). Both number of total service engagements and executed documents had increased exponentially compared to that of the original baseline. Issue: Faced with an ever-increasing number of service requests that compounded and lengthened both production of services and completion times, AARP’s Office Of General Counsel had to act. It did not want to compromise providing world-class service to its clients with producing highquality legal documentation simply to “get people out the door. ” The huge number of service requests strained both technical quality and customer SLAs (Service Level Agreements), and degraded the necessary customer rapport for the client-focused, OGC operations team. With client service requests accelerating and no additional staff available a viable solution had to be found.
Use DMAIC Approach To Solve Problem • Define the problem and the objectives • Can we measure what we need to improve and then translate the data into insights? Create or Improve Services Service Delivery Mechanisms Engage the Client Operations Management • Identify and implement improvements • Can improvements be controlled, are they sustainable, repeatable? • Analyze the process and influence factors Business Process Capabilities Addressed
The Importance of Relationships Tacit Knowledge Client Engagement Optimized Client/Service Ecosystem g n ni r a Le Explicit Knowledge Data Metrics Data Business Intelligence Tacit Explicit 6
The Solution: The 5 K MOU Process Implement a Self-Service Model whereby clients can “pre-approve” their MOUs by using an email-based contract template. After clients complete training, and then as long as the proposed relationship meets policy criteria, the agreements are executed by using the email-based template. The MOUs are audited by OGC for compliance. This initiative was an evolution in process, risk assessment, and client service. We completely changed an existing way of conducting business. This paradigm shift has also improved the internal client's control, speed and consequently selfconfidence - it has made us a more agile organization. • • • Who was involved Other approaches How did we implement Staff concerns Other Phases
Program Goals and Results Since implementation of the Program from July 2013 to today, the process has successfully managed organizational risk, significantly reduced time to execute agreements, exceeded program goal metrics, and increased OGC client satisfaction indicators. Program Goals Program Results Produce a 25% work-load reduction for legal review of state office MOUs 46% work-load reduction for “formal” legal review of state office MOUs Reduce by 50% the time needed to complete MOU agreements 400% reduction in time required to complete agreements Improve client satisfaction indicators Positive client email testimonials, praise email by senior leadership, mention to the Board of Directors, phone calls and anecdotal stories Redirect reclaimed capacity New project completed to expand client facing website OGC Online, 4 new client process desktools created, 2 trainings conducted on policy issues, over 750 document audits performed, 2 new organizational projects
Alliant Techsystems (ATK): Client Development Initiative Scott Chaplin, Esq. Senior Vice President, General Counsel & Secretary Alliant Techsystems Inc. (ATK) Scott. Chaplin@ATK. com
ATK – Client Development Initiative • The Issue: – One reason that lawyers often depart private practice for a career in-house is to avoid the responsibility of building a client-base and developing and maintaining a book of business. This includes the continual pressure to network and meet law firm client origination requirements. – Yes, there is less pressure to conduct client development when you are inhouse and you sit with your client everyday. We do not, for example, have the pressure of getting an engagement letter executed by a new client. The work is there for us already. – But, is this really a good thing? Is the lack of client development helping or hurting the reputation of in-house lawyers? Could well-defined and properly executed client development initiatives be a good thing for the in-house legal community (and the client!)? Dare I ask - is it possible that we could actually learn something from law firms?
ATK – Client Development Initiative • The Problem: – When I came on board, the Office of General Counsel had an image problem. – It was clear that all lawyers were talented, dedicated, hardworking, and experts in their field. These are the best lawyers I have ever worked with. – Yet, when I spoke with the client community I would hear phrases like “the Department of NO” and “the office sales prevention. ” – The team believed the reputation was undeserving, yet recognized that sometimes perception can become reality. They were passionate about fixing the image problem, resulting in many changes within the department. – We rolled out an organizational restructuring, re-defined roles, expanded some practice areas and reduced others to ensure our organization mirrored the mission and strategy of the client. – We implemented and issued our own Vision and Mission Statement. – It became apparent that if we were going to truly re-define ourselves and improve our image, we need to also enhance the manor in which we engage with the client. We needed a client development initiative.
ATK – Client Development Initiative • The Solution: Client Development Initiative – Every lawyer (at all levels) was given the assignment to develop a client development plan for the year. – As a leadership team, we discussed the overarching goals and objectives of the plans, but purposefully left open the structure and the individual plan development; nothing standardized, no template, etc. – Lawyers were encouraged to tailor their individualized plan to their practice, their strengths and their personality. – There was admittedly some confusion on the assignment due to the lack of structure, but we purposefully limited the dialogue, did not provide a lot of examples, and left a fair amount to be interpreted by each individual. – We urged the team to think back to the client development tools from private practice and challenged them to take variations on those themes in determining what type of in-house client engagement would improve the relationship between lawyer and client.
ATK – Client Development Initiative • The Plans – The individual client development plans exceeded expectations. The team came up with meaningful and creative ways to develop existing clients and/or find new clients within the organization. – Some Examples • • • An Ops lawyer went on a “Service Offering” campaign within his business Group. He put together a presentation that outlines all the various tasks his legal group performs, as well as some capabilities that they are not currently performing, but could perform if there was a need. It was essentially a re-introduction to the legal team - very simple, but very productive. The client loved it. The key -- free lunch. You know you’ll get good turnout for anything with pizza and chips. Attendance was great and so was the feedback, including – “we had no idea you guys did all that”, “I didn’t know we had people who could help us with ___. ” The Group legal team saw in increase in business and an overall improvement in client satisfaction and engagement. The head of the IP group selected key business leaders, flew to their location, and took them to dinner in a traditional client development approach. The purpose was to target those business leaders that did NOT utilize the IP legal group with frequency, explain the strategy and capabilities of the IP legal team to demonstrate that it was more than just trademark and patent prosecution, but that the IP Group has a real strategic value proposition on how to exploit IP to further business goals. The question of the dinner was simply “if you think we could ever be of any service to your business, give us a call. ” They did! We had to hire more IP lawyers. Another lawyer simply went in search of new work – cold calls, introductions, short explanation of what he does, and an offer to help out with anything. He was surprised at the response – requests for training, inquiries about issues that we (legal) were unaware of, requests for in-person visits, and invitations to standing operational meetings that previously legal representatives did not attend.
ATK – Client Development Initiative • The Results – We strongly believe that the client development plans achieved two goals: • It forced all lawyers to think about their relationship with clients in a different way, including the simple idea of seeking work as opposed to waiting for it. • It absolutely changed the way the client thinks about us. We were not just saying “proactive versus reactive”, we were living it. We became more of a partner to business and less of a “requirement. ” Our reputation improved dramatically. • The Lessons Learned – I believe an important component of the project was accountability. Lawyers were judged on their plan performance. They were not judged on the plan itself, but they were accountable to demonstrate results. If there were no results from the plan, the plan needed to be adjusted. • The Message – At the end of the day, I think we proved our point – lawyers should not and can not escape client development just because they are in-house. If anything, effective client development should be as much of a requirement for in-house lawyers as for those in private practice.
Co. Star Group Inc. : Anti-Piracy Program Jonathan Coleman, Esq. General Counsel Co. Star Group, Inc. JColeman@Co. Star. Group. com
Who is Co. Star? • Co. Star is the #1 Commercial Real Estate data provider in the U. S. and U. K. , with over 1, 000 professional researchers • Over 25+ years we have compiled: – Info on over 1. 5 million sale and lease listings, covering 8. 6 billion sq ft – Info on an inventory of over 4 million properties in total – Over 15 million digital images (e. g. , building photos) • Co. Star Products – Co. Star Suite. TM products provide CRE information (including images) that is verified and accessed by subscribers via login credentials – Loop. Net. com provides an online CRE listing marketplace (some portions are password protected) – Apartments. com provides an online apartments marketplace (entirely open to public)
The Problem? • Data Theft! Data is our most important asset and the lifeblood of the Company. Job #1 for Legal is to protect Co. Star’s IP. • Co. Star’s many products present different theft issues. • Began 25+ years ago with data theft from password– protected areas of Co. Star’s Products: – User Theft: Password sharing by those who don’t think of it as theft; Reselling Access – Competitor Theft: Individuals and companies seeking to launch competitive products w/o putting in the hard work of collecting data • Evolved to now include scraping of our public sites, hotlinking/framing our proprietary content.
The Innovation • Anti-piracy program that detects and deters theft … and brings revenue$ into the Company! • Comprehensive, multi-pronged, proactive approach of Education, Technology and Enforcement. • Not just a Legal issue: Need buy-in from CEO and resources from Systems, Sales and Marketing • Education -- Theft of Co. Star’s IP is no different than theft of physical merchandise – Audience: employees, customers, non-customers, and competitors – Antipiracy page on website: Includes FAQ’s about authorized use vs. piracy; and Tip Line/Rewards Program – Sales training, client communications, press releases
Technology & Enforcement • Technological Tools: Detection & Prevention – – – Watermarking photos Seeding data Customized automated alerts for suspicious log-ins (e. g. , bump-outs) Analyses of usage patterns and IP addresses Prevention examples: anti-scraping monitoring, blacklisting • Enforcement/Deterrence – Copyright registration program (gives rise to statutory damages) – Internal referrals, tip line/tip rewards, auditing of competitor products – Antipiracy team investigates/confronts those we catch and attempts to resolve via payment of back-fees and go-forward license – Litigate and publicize most egregious cases … deterrent effect
Innovative Benefits In addition to successfully identifying, prosecuting, and deterring theft of our IP, the Antipiracy Program: – More than pays for itself, averaging $1 M/yr revenue, past 5 yrs. – Elevates the profile of the legal department within the organization and in the industry – Motivates team members with incentive-based compensation determined by # of deals closed and amounts recovered – Challenges us to stay nimble with product changes, technological advancements, and evolving theft tactics
General Dynamics AIS: Balanced Scorecard Mark Nackman, Esq. Vice President & General Counsel General Dynamics Advanced Information Systems Mark. Nackman@GDAIS. com
GD-AIS Law Department Balanced Scorecard • Goal was to create a document to track the important/strategic goals and metrics by which the ultimate success of the law department would be judged for the year. • Then wanted to do so in a way that was consistent with other parts of the business that are tracked with scorecards to establish credibility and make it easier for our business unit president to evaluate. • Needed to determine what to measure, then how • • Utilized a combination of historical data. Industry benchmark surveys, & A customized survey (along with beginning of the year survey results to measure improvement against). By setting goals and high performance/stretch goals, our leadership agreed at the beginning of the year, what success would look like, including how to define high performance (which ties directly into our year end bonus system).
GD-AIS Law Dept. Internal Customer Satisfaction Survey • Asked to rate the Law Department from 1 (Unacceptable) to 5 (Excellent) in 5 categories: • • • Availability Timeliness Utility of Assistance Proactiveness Professionalism Then asked to rate how important each category was from 1 (Unimportant) to 5 (Extremely). • This allows us to determine where we are not putting enough focus, as well as where we might be putting too much. • Also allowed space after each question for comments (and we received many). • Sent at end of last year and end of this year to the top ~160 leaders in the company via survey monkey. • Allows us to track improvement year-over-year
2014 Operating Goals GD-AIS Law Department
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