Effective collaboration: twenty practical considerations for corporate counsel.

• Author: O'Connell, W. Scott

In the July, 2005 Corporate Counsel newsletter, W. Scott O'Connell and Marcus E. Cohn offer twenty practical considerations for corporate counsel in obtaining value from outside counsel while, at the same time, containing costs.

As the fees and costs associated with major and systemic litigation continue to grow, so too do the pressures on in-house counsel to manage and contain these expenses. Ensuring that the fees and costs bear some reasonable relation to the inherent risks and business objectives of the case is among the more complex tasks which confront any legal team. When cost is not an issue, it's comparatively easy to preserve all options and defer difficult strategic discussions while the earth is "scorched" and no stone is left unturned. Cost, however, is an issue more often than not, and containing of expenses requires strategic, focused, and disciplined effort. Informed surgical strikes often are more valuable than overwhelming "shock and awe" force.

Focused strategies for cost containment, while delivering the "reward" of increased cost savings, also contain commensurate "risks." By focusing and investing in certain perceived high-yield activities, other promising areas of attention are ignored or undeveloped. Tough choices have tough consequences at times, a reality that must be acknowledged and embraced by the entire litigation team. Many productive relationships between inside and outside lawyers have broken down because of the failure to identify, manage, and accept responsibility for this type of "risk/reward" approach. Success requires collaboration and discipline.

Developing effective collaboration is more of an "art" than "science." Certain guidelines, procedures, and strategies, however, are helpful in creating the environment for productive collaboration. In assessing the effectiveness of your collaborative efforts, consider how you have dealt with the following:

1. Define "Value"

   Clients want and need "value" for the litigation investment made. "Value"--like beauty--is in the eye of the beholder and is a function of many things, including the risk of loss and the cost of success. Ensuring that the entire legal team has a common understanding of what "value" means in the context of any case is essential and becomes a guiding principle against which all decisions are made. Detail the business objectives and make sure that both your client and outside lawyers have a common understanding on this essential point.

2. Build Your Legal Team Starting With The Lead Trial Attorney

   Execution of a strategic and focused strategy to contain costs...