Better Value Legal Services
MAJOR IN-HOUSE EFFICIENCY REVIEW
Our client, a £multi-billion insurance, healthcare and consumer services entity, wished to create a cross-business legal services panel – the first in its history – to drive out improved service delivery, improved efficiency, certainty of cost through greater fixed pricing and closer collaboration with service providers. Our client also required support in identifying an efficient engagement model between the Business, the Legal Team and outside counsel to ensure that legal tasks were performed by the right resource, at the right time and the right cost, enabling the in-house legal team to focus on the company’s most value add legal work at the expense of low risk-high volume work.
OMC conducted a detailed analysis of the company’s current legal spend – both internal and external – identifying three times the level of spend as was estimated. Benchmarking this spend against competitive market rates secured by other GC, considering new innovative ways of delivering legal services, and using our database of legal task definitions developed pre-set fixed fee pricing for regular tasks.
Thereafter, we worked closely with senior stakeholders to identify a tender shortlist of leading legal services suppliers (including new innovative market entrants) and put together a comprehensive RFP which included best of breed reporting, instruction and billing protocols as well as a fixed fee menu of legal activities. Finally we worked with our client to implement a robust engagement model that allocated legal tasks by risk/complexity/specialism to the most appropriate resource, whether internal or external.
120 pre-set fees for regular work – thereby eliminating negotiation time and increasing consistency; £700k reduction in external spend; 40 person internal team structured and motivated.