INFOGRAPHIC: Better Budgeting Analysis, Better Predictability
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Transcript of INFOGRAPHIC: Better Budgeting Analysis, Better Predictability
B E T T E R
B E T T E RBUDGETING ANALYSIS
MORE THAN JUST PRACTICING LAW
BUDGETING BASICS
PREDICTABILITY
not only plays a central role in cost-saving automation and
integration, it also delivers insight into budgets and facilitates
their effective management.
WHETHER COMPANY OR FIRM,
EVERYONE LIKES COST PREDICTABILITY.
BUDGETS CAN HELP MAKE IMPORTANT, INFORMED DECISIONS.
“Corporate legal teams have to use the same rigor as other departments in
understanding the budget and legal spend. They have to be able to predict what
they’re doing next year and show the efficiencies to justify their existence.”
– Paul Meyer, Managing Counsel E-Discovery, Willis Towers Watson
PRO TIP
expectations and scope proportional to task or matter.
PLAN
TECHNOLOGY
COMMUNICATE
THE LINES OF COMMUNICATION
IDENTIFY
a budget (the anticipated cost and time of a matter).
plan and expectations to inside and outside team.
Consider including these metrics when reporting.
TIPS FOR SUCCESS FOR FIRMS
TRACK
USE
spend consistently and accurately.
technology.
OUTSIDE V. INSIDE SPEND
LITIGATION EXPOSER BY MATTER
Matter
Matter type
Firm
Fee Arrangement
Cost driver
“There are tools out there to help understand and manage budgets.
KEEP IT SIMPLE.”
– Vince Cordo, Global Sourcing Officer, Shell
“A proactive client on performance and budget is an important part of
managing litigation and staying on budget.”
– Paul Meyer, Managing Counsel E-Discovery, Willis Towers Watson
PRO TIP
PRO TIP
SPEND V. BUDGET BY CATEGORY:
METRICS TREND ANALYSIS FOR:
Diversity
Jurisdiction
Judge
Win/Loss
Expenses
REPORTING: THE BIG PICTURE
SURVEY SAYS!
1%-10%18%
36%11%-25%
26%-50%9%
36%DO NOT USE AFAS
LEGAL SPEND OR MATTER MANAGEMENT SOFTWARE
18%
9%EMAIL/PHONE CALLS
SPREADSHEETS64%
9%EBILLING/INVOICE SYSTEM ONLY
What is your top budgeting priority?
$
$
"Firms that are proactive in outreach and communication on tracking
budget against spend are the most successful, bar none."
– Vince Cordo, Global Sourcing Officer, Shell
PRO TIP
Act as a partner to clients.
Interact with clients as frequently as possible with data and info that adds value to all levels.
Track and report actuals more often than every 30 days
because a lot can change in that
time frame.
Get the full on-demand webinar at http://bit.ly/LLMbudgetwebinarWANT MORE?
What percentage of litigation matters
does counsel use AFAs for?
How do you communicate and track spend
between inside and outside counsel?
The chief legal officer and in-house team are shifting to address
different needs, including budgeting and advising the C-suite and board. In
order to manage outside law firms, GCs need to develop strategic and business
knowledge, financial skills and collaboration, plus explore AFAs. Firms also need to focus on
lean management, improving their productivity skills and providing more value to their clients.
21%ACCOUNTABILITY
79%PREDICTABILITY
The results from participants in a recent webinar we hosted
“WE’RE AT A POINT IN THE INDUSTRY
WHERE YOU GOTTA BE ABLE TO DO THIS.”– Vince Cordo, Global Sourcing Officer, Shell