Results-Driven Trends in Today's Legal Operations

© 2017 Cisco and/or its affiliates. All rights reserved
Steven Harmon
Vice President and Deputy General Counsel
May 16, 2018
Results-Driven
Trends in Today’s
Legal Operations

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© 2018 Cisco and/or its affiliates. All rights reserved. Cisco Highly Confidential
A little background…

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Who We Are…

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AGENDA & OBJECTIVES
Cisco’s approach to Legal
Attorney Identity Crisis
Attorneys as Project Managers
Tools, Process, and Culture
Putting it all together – the “Global Center of Excellence”
Trends to Watch

Enduring Values
1. Ensure Transparency and Integrity
2. Be Change Agents
3. Low cost, high quality legal department;
leveraging people and technology
4. Partner with our clients

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“The sole reason our department
exists is to support Cisco’s efforts to
design, build, and sell our products
in a legally appropriate way.”

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Gateway not Gatekeeper

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Legal Services
must:
steward
processes
drive results
“We have the industry’s most excellent
ordering and signature process”

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…your needs don’t fit our contracting model
I regret that…

Core vs Context Resource Allocation Model
Context Core
Mission
Critical
Non-
Mission
Critical
Activities that are necessary but
not tied to competitive advantage
Activities that contribute to
competitive advantage
Activities that, if
performed
poorly, pose an
immediate risk
Activities that, if
performed
poorly, do not
pose a risk
Outsource
HR Cases
Smaller litigation
Real estate
Tools/Processes
Entity
Management
eBilling
Self-Service
Routine
transaction
processing
Tools/Processes
Document Assembly
Patent Tracking
**20%
Out-task
High Stakes Litigation
Compliance
Reputation
HR Policy
Tools/Processes
Compliance integrity
reviews
eDiscovery
**15%
In-task
Design, build, sell
Business Dev
IP Rights
M&A Diligence
Templates
Knowledge Management
Tools/Processes
**65%
** % of in-house legal staff devoted to this work

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AGENDA & OBJECTIVES
Trends to Watch

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© 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
In-house legal
services: attorney
perspective I
“I am the giver of wisdom.”

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In-house legal
services: attorney
perspective II
“I am under siege, getting hit with demands
from every angle”

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In-house legal
services: client
perspective
“I know someone in there can help me…”

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“Crazy Busy”

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Desired perception

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AGENDA & OBJECTIVES
Trends to Watch

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Brian Brain Surgeon

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Victor VHA Chief Medical Officer

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?
Brian
or
Who is the better doctor…
Victor

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Lawyer as a Project Manager

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The DMAIC framework
“Define” is the Core vs. Context Decision

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Define: Know your Product
Q: “What do you want for lunch?”
A: “I want steak.”

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Define - Know your outcome

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Litigation – Define your outcome
Q: What does it mean to “win?”

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AGENDA & OBJECTIVES
Trends to Watch

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Three Distinct Challenges
Process CultureTools

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Tools

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What should I do? Buy a new tool!
“Play the face of the future. All new X3X
high-frequency grooves and a more
precise forging process create irons that
offer shot-shaping performance for the
top players in the world. Each iron face
features more grooves, resulting in
cleaner, more consistent ball flight and
spin while still conforming to new rules.
From materials, to design, to
construction, everything is done to
eliminate variance and enhance control.”

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If you build it, they will come… unless they don’t

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This is not agility!

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Optimizing the NDA Process

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AGENDA & OBJECTIVES
Trends to Watch

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The Global Center of Excellence (gCOE)
A Programmatic Solution to an Organizational Problem

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Process Culture

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Cisco Legal Services

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A Very Senior Group of People . . .
0
5
10
15
20
25
30
35
40
Grade 2 4 6 8 9 10 11 12 13 14
Grade Distribution Among CN
74 Contract Negotiators (CN)

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… Who handle a wide range of tasks
14%
7%
19%
38%
14%
9%
0%
10%
20%
30%
40%
Administrative
Tasks
Acquisition
Integration
Client
Support
Transactional
Work
Peer Support/
Career
Development
Other
Contract Negotiator Tasks
Administrative
Tasks
Acquisition
Integration
Client
Support
Transactional
Work

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Blowing up Admin Time
2% 5% 3% 3%
87%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Organizing
Travel
Organizing
Meetings
Reviewing
Invoices
IT Issues Managing
Contracts
Admin Tasks (14% of total time)
• Data entry
• Accuracy checking
• Contract admin
• Searching the
database
• Answering requests
related to Site IDs,
Bill IDs

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“Never confuse effort with results”

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-19.34% QoQ
+11.06% YoY
4,631
4,922
5,980 5,873
4,893 5,062
6,236
6,737
5,434
0
1000
2000
3000
4000
5000
6000
7000
8000
Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4YF17 Q1FY18
Note regarding metrics:
As of Q1 FY17, one Legal matter = one Remedy case
We no longer open additional cases to track time, effort, or complexity
The data on the graphs excludes all such additional transactions from previous quarters
CSAT 4.97
based on 298 survey responses
GCOE Transaction Trend (Unique Matters)

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gCOE
5days
6x Faster to Signature
50% Staffing Savings
gCOE C-Sat 4.99
e-signature
4hours
Business Predictability
Time to Approval Time to Signature Outcomes
CN
11days
Ink signature
24hours
Ease of Doing Business

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AGENDA & OBJECTIVES
Trends to Watch

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Trends to Watch

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#1 It won’t be harder
than this
A Self-Driving Car is a Rules System
Are real-time systems more complex than
law?

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#2 Machine Learning,
Artificial Intelligence,
and Big Data
Machine learning doesn’t have to be
perfect… just better than this guy

Ben Evans at Andreessen Horowitz
http://ben-evans.com/benedictevans/2016/12/8/mobile-is-eating-
the-world

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#3 Analytics and
Metrics Everywhere
Accountability is coming

General Eric Shinseki, U.S. Army
If you dislike change, you're going to
dislike irrelevance even more.

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Cisco:
Out there or
bellwether?

Results-Driven Trends in Today's Legal Operations

Results-Driven Trends in Today's Legal Operations

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