Cognition LLP Co-Founder Joe Milstone shares insight on operating a dispersed law firm.

1. ESTABLISHING &
OPERATING A
DISPERSED LAW FIRM
Joe Milstone
Co-Founder

2.  Want clients who are playing with real money
 Reducing hourly rate is thin edge of wedge
 Enablement of alternative models
 Reduction of duplication
 Capitalize on historical client irritants
 Virtual and boutique ≠ Lean and Innovative
 Lean and innovative ≠ LPO and commodity work
 Quality remains paramount
 Need something more than cloud and cost
Lessons Learned

3.  Outside firm that behaves like in-house counsel
 Lawyers with best-of-breed credentials
 Available on a flexible / customizable basis
 Integrated with business team
 Rates that are ⅓ to ½ the cost of traditional firms
One Model for Dispersed Legal
Services

4. Where This Fits
Cognition LLP
Reduce dependency on high priced counsel
Keep work in-house/integrate with your team
Get a business-minded lawyer with relevant experience
Reduce cost
Flexible alternative to a full-time hire
For peaks and valleys in work-flow
For part-time work
For specific project-based work
Access to varied skillset
Corporate Law Departments Cognition LLP Law Firms

5. Where your fees go with BigLaw

6. Components of a Billable Hour
LAWYER’S SALARY
SUPPORT STAFF
CLASS A OFFICE SPACE
MARKETING EXPENSES
TRAINING JR. LAWYERS
PARTNER DRAWS
EXPENSE ACCOUNTS
FIRM RETREATS
COPY CENTRE
OTHER OVERHEAD
TYPICALLAWFIRMRATES
DISPERSEDLAWFIRM
CAPABILITIES

7.  Employees, contractors and/or partners
 Control, Tools, Dependency, Flexibility
 Decision drives follow-on structural issues:
 IP and confidentiality
 Non-competes
 Salary, benefit and expense expectations
 Payment and taxes
Business Considerations – Supply
Side

8.  Flexibility with pricing – AFAs, discounts
 Psychology of oversight and centralization
 Retainers and billing terms
 Commitments and thresholds
 Engagement letters and lawyer-client relationship
Business Considerations – Sell
Side

9. Cognition Overview
2 2
1
3
5
4
1
4
21
0
5
10
15
20
25
2006 2007 2008 2009 2010 2011 2012 2013 2014
659applicationsreceived
Years our Current Lawyers Joined

10. Cognition Overview
Average experience among Cognition lawyers:
They also have:
in-house experience
before joining Cognition
Cognition’s lawyers have a
total of:
post-call experience
Cognition’s Lawyers
spend:
working in law firms
before moving on to in-
house positions

11. Cognition Overview
123 146
223 116
121 11
122 12
11 113

12. Cognition Overview

13. General Counsel
• 11
Associate
General Counsel
• 3
Senior Counsel
• 7
Counsel
• 12
Cognition Overview

14. Cognition Overview
3
38 2

15. Lawyers
Cognition Overview
StaffAssociates Executives

16. Becoming Legal Solutions
Architects
Technology
Automation
Managed
Services
Co-opetition

17. Media Attention
“The principles behind Cognition…include being tech-savvy,
efficiency-conscious, low-overhead and partner-free.”
“[Cognition] is part of a new breed of small, nimble law firms thriving
at a time when traditional corporate firms are seeing their profits
squeezed”
“The key to reducing fees to a fraction of [Cognition’s] Bay Street
brethren? Cut out the marble-adorned offices and hire senior lawyers
who can handle projects without assistants and junior associates.”
Cognition named one of
Canada’s fastest growing
businesses for a third year
in a row!
“Cognition LLP [is] shaking up the market with new ways of
providing legal services, such as fixed-fee services.”

18. Media Attention

19. Joe Milstone
Cognition LLP
jmilstone@cognitionllp.com
416-348-0313
Thanks and Questions