Post on 08-Mar-2016
description
The Evolution of Alternate Fee Arrangements
Best Practices, Project Management, and Future Predictions
Introduction
• Emmanuel Kyrinis – Sr. Director Product Management, Aderant
What We’ll Cover
• Background• Problem Space• The AFA Proposal• Project Management• Next Steps• Your Stories
Background
A Little Background
• Billable hour still the predominate fee arrangement– Includes discounting
A Little Background
• AFA usage increasing primarily around– Fixed/Flat Fee– Blended Rates– Capped Fees
A Little Background
• AFA Drivers beyond the economic climate– Gain / Maintain Clients– Manage Risk– Communication
Problem Space
Problem Space
“Setting price high enough to meet profitability targets and low enough to ensure winning the work.”
“Managing the work so I meet client expectations and projected profitability targets.”
Proposal
Understanding Past Experience
• Firm Resume– Past relevant matter experience– Team domain expertise
“Provides the starting point for estimating the scope of the new work”
Understanding Past Experience
Scope / Plan
• Utilize relevant work as a starting point• Ideally matters that utilized Task Based
Billing (TBB) / Work Breakdown Structure (WBS) information
• Alternatively utilize proven templates“Build a project plan to understand the hours and resources required.”
Scope / Plan
Resource Scheduling
• Sourcing resources and allocating work in a timeline
• For most firms should be looked at as a Phase II concept for rollout
“Scheduling is commonly done once the proposal is accepted.”
Resource Scheduling
Pricing Models
• Determine objectives for proposal• Regardless of pricing model utilized,
understanding costs is essential• Cost should not necessarily dictate price
Pricing Models
Additional Thoughts
• Data collected can be utilized to prepare engagement letter using document assembly
• Data collected can be fed backing into accounting system for billing purposes
Project Management
Setup
• Work Breakdown Structure• Rates• Other engagement terms
Tracking
• Data entry of time and expenses– The challenge of time entry
• Updating of schedules• Understanding percentage complete
“Control Costs, Meet Schedules, Manage Risks”
Tracking
Reporting
• Budget vs Actual• Revisions• eBilling
“Client communication and managing the relationship”
Reporting
Review
• Update appropriate matter attributes such as scope work types
• Completion notes – How did we do?– What could be improved?
• Update templates
Summary
Planning Pricing Management Review
Next Steps
Next Steps
• AFAs not going away regardless of economic climate
• Project management mainstream for larger transactions and client communication
• Adoption of eBilling budget standards• Integrated software to handle AFAs• Resource/talent management usage
Questions?emmanuel.kyrinis@aderant.com