Eversheds LLP and Tyco International Ltd announced on May 19 that they have further expanded their ground-breaking multi-jurisdiction engagement. In this next phase, innovative new mutual-profit arrangements will be applied to the management of the company's most complex and highest-priority matters.
"This partnership is truly precedent-setting in the sense that a single law firm has been entrusted by one client with such a comprehensive range of legal service needs, and in more than 30 jurisdictions," said David Gray, Chief Executive of Eversheds. "We are extremely proud to be that law firm."
During the next phase, Eversheds will continue handling high-end Tyco work such as the recent multi-jurisdiction Ancon business divestiture and the major restructuring of Tyco businesses in Europe, the Middle East, and Africa (EMEA). Additionally it will bring new performance-based efficiencies to its regular commercial and compliance work.
The expanded award-winning engagement confirms the success of the Global Account Management model delivered by Eversheds, which supports a relationship committed to ensuring behaviours that will benefit both the international law firm and Tyco across the entire EMEA region. Most notable among the accolades so far was an invitation to Tyco from the Harvard Law School to feature its SMARTER model in its next academic year.
Of equal significance, the new phase of the engagement provides Eversheds with substantial bonus incentives to meet pre-specified client satisfaction and diversity targets and achieve proactive litigation avoidance - in other words, promoting and encouraging behaviours that are counter-cultural at many traditional law firms.
"These incentives expand the very definition of a successful corporate legal engagement," said Mr. Gray. "Success means much more than just achieving good results in litigation or transactions, or in meeting specific cost containment goals. We are now positioned to help our client achieve broader legal, business, and professional goals as well."
Client satisfaction will be determined by a regular audit, with bonuses calculated by how much Eversheds equals or exceeds stipulated measurement levels. Client satisfaction has always been fundamental for Eversheds, but consistent delivery across more than 30 jurisdictions will now have a direct and significant impact on compensation.
Bonuses for proactive litigation avoidance will be determined by the percentage reduction in proceedings against Tyco, or proceedings brought by Tyco, compared to 2007, ensuring that Eversheds and Tyco work closely in key areas to reduce the volume of cases. This initiative is supported by the detailed analysis of litigation causation in any jurisdiction within EMEA provided by the Eversheds Global Account Management System.
Tyco will also reward Eversheds for reaching a range of diversity targets, an area that continues to be a significant priority for both organizations.
Commenting on this new generation of law firm and in house relationship, Trevor Faure, Vice-President and General Counsel of Tyco International, said
"The modern legal priorities of Coverage, Compliance, Client Satisfaction, and Cost have all been demonstrably improved in the first year, despite being inherently irreconcilable.
We are building on this success by replacing the traditional "zero sum game" tension between law firms and clients with a Profitable Partnership; quality performance will result in higher financial reward for Eversheds and cost savings for Tyco at the same time.
The globalisation of capital, business and legal standards demands objective metrics and data analysis to drive high quality and compliance."