Friday Freebie 2: effectively managing outside counsel AKA a law firm
This freebie is something anyone in leadership and in-house should learn to do. Getting this right from the start saves money, time, and avoids disappoinment/ uncomfortable conversations later - for both you and the firm.
(i) scope: make sure you know specifically what you want the law firm to look into and advise on. Remember that the broader the question and bigger the scope the bigger the legal bill - keep the project / scope tight.
(ii) experience/caliber: do your diligence on the firm and their experience against your scope. this is critical. ask them if they've done something similar before - most likely other clients asked similar questions so it should result in cost savings for you. Also carefully consider if your in-house legal team can address the issue internally. Often they can.
(iii) the bill and timing: ask if hourly or flat fee (how much for partner vs associate hours) and if flat fee, how much for the scope. Ask when specifically they will be done or if you need it done by a certain time - that they agree they can and will- tell them the cap on hours you are willing to give to this project and they shouldnt go over without written agreement and discussion. Let them know if you'd prefer an associate work on it and a partner give it a second quick look -resulting in cost savings;
(iv) boundaries: tell them what you want or do not want, specifically. Is it a one page summary? a powerpoint? a verbal summary? how many phone calls- how long . Determine if the calls are part of the lump sum - if not that they be done with the associate - tell them the expectation of calls is quick and efficient - no long intros and round tables unless you want that (and you pay for that) - and how the final work will be delivered. ask them if emails they send for clarity are counted as time spent - make sure they understand who can and can't direct questions to them - it should be one point of contact or the scope expands and bill grows - confusion ensues.
(v) clarity: take all of that and resummarize in an email to the firm - so everyone is on the same page before agreeing to take them on - also let them know before scope changes they confirm with you if price will be impacted and before additional or side work. if hours are almost out before the project done they should tell you - either no more calls/emails and it stays within budget or a new budget is needed.
(vi) closure: if the work product and bill doesn't match above - it is ok to have a conversation about what was missing or out of scope - you or they may be mistaken and relationships are important. If permissible, share the information gained with your internal coworkers and in-house lawyers - you paid for it - so upskill them.
Being in-house, I worked with some excellent trustworthy outside law firms. I still deployed above. It benefits all.
Cheers and good luck,
The One Vie Team
