Outside counsel guidelines (OCGs) are the rulebook that corporate legal departments establish for their law firm partners. These guidelines standardize expectations around billing, staffing, communication, and matter management.
What Do OCGs Cover?
Billing and Invoicing
- Required use of UTBMS codes
- LEDES format requirements
- Rate schedules and approved rates
- Billing frequency and payment terms
- Prohibited charges (e.g., first-class travel, overtime premiums)
Staffing and Supervision
- Approval requirements for staffing changes
- Minimum experience levels by task
- Partner supervision expectations
- Use of temporary attorneys or contract lawyers
Matter Management
- Reporting requirements and cadence
- Budget submission and approval processes
- Milestone and deadline tracking
- Document management standards
Ethical and Compliance
- Conflict checking procedures
- Confidentiality and data security requirements
- Diversity and inclusion reporting
- Insurance and indemnification requirements
Technology and Communication
- Required use of e-billing platforms
- Document sharing and collaboration tools
- Communication protocols
- Data handling and cybersecurity standards
Why OCGs Matter
For Corporate Legal Departments
- Cost control: Standardized rules prevent billing surprises
- Quality assurance: Minimum standards for legal work
- Efficiency: Streamlined processes across multiple firms
- Compliance: Consistent adherence to corporate policies
For Law Firms
- Clear expectations: Know what clients require
- Competitive positioning: Compliance demonstrates professionalism
- Process improvement: OCGs often drive operational efficiency
- Relationship management: Framework for client communication
Common OCG Pitfalls
- Over-complexity: Guidelines so detailed they're impractical to follow
- One-size-fits-all: Same rules for routine work and bet-the-company litigation
- Enforcement gaps: Guidelines exist but aren't consistently enforced
- Rate rigidity: Failing to account for market rate changes