Transcript Top 5 Trends in Ebilling Leah Beckham, CEO Beth Thompson

Top 5 Trends in
Ebilling
Leah Beckham, CEO
Beth Thompson, Director - Business Development
There’s a new sheriff in town…
Post Recession
Pyramid
Business Model
Crushed
Trend #1
Client Demand for Value Post recession
Rise of
Alternative
Providers
Aggressive
Pricing
Pressure
ACC Value Challenge
The ACC Value Challenge focuses on
providing resources and training —
for law firms as well as law
departments — on these key value
levers:
• Aligning Relationships
• Value-based Fee Structures - i.e.
not based on the "billable hour"
• Staffing and Training Practices
• Budgeting
• Project Management
• Process Improvement
• Use of Technology
• Data Management
•
•
Knowledge Management
Change Management
Trend #2
Increased
Accountability of
CLOs
Growing Demand for
Ebilling
The Big Squeeze
Greater
Complexity of
Guidelines
Increased Time
Entry Scrutiny
Trend #3
Big Data
Increased Use of
Big Data
By Clients
& Law Firms
Where Does the
Data Come From?
Ebilling
How Did We Get Here?
LEDES: Legal Electronic Data Exchange Standard
In 1995 Price
Waterhouse, LLP
convened a
consortium of
leading legal
industry time and
billing system and
case
management
system vendors
in order to define
a standard
electronic billing
format for use by
the legal industry
ABA UTMBS Codes
•
•
•
Task
Activity
Expense
The Uniform TaskBased Management
System (UTMBS)
enables lawyers to
budget and bill by
litigation task, aiding
client and counsel in
understanding,
managing and
conducting litigations.
LEDES & UTMBS
Foundation of Big Data
1995
Technology &
Content
Standard
Ebilling
Data
Collection
Organization &
Analysis
Business
Intelligence
Trend #4
Applied Business Intelligence
• Business
Intelligence
• Compare &
Select Business
Partners
• Control &
Predict Legal
Spend
• Design
Alternative Fee
Models
LegalVIEW®
Facts
>$44 Billion in legal spend
>398 M hours of legal
services
>105 M activities captured
>17,000 law firms and
vendors
>286,000 individual billers
and time keepers
Are you looking for ways to
immediately save on outside
counsel?
Download our complimentary
white paper,
"A Better Approach to
Managing Legal Rate Increases"
to learn one legal cost control
strategy that can quickly
impact your bottom line.
Sky Analytics
Sky Analytics
Sky Analytics
Big Data Flow
Law
Firm
Big
Data
Law
Dept
Ebilling
Trend #5
Metrics
Transparency
(Internal/External)
LexisNexis®
MedMal Navigator℠
• Customer Testimonial
“Now attorneys can access medical research
materials in one place, even those materials
that are much harder-to-find. Attorneys can
also determine in 20 minutes versus 20 days
if a case is worth taking on.”
How Many Law Firms
Are Using Data?
• How many of you work in law firms that use an
outside source of big data?
• How many of you have developed internal Metrics
or Key Performance Indicators (KPIs) mining data
within your law firm data?
• How many use it for Marketing?
ABA Journal
May 5, 2013
• ABA Article: “How lawyers are mining the
information mother lode for pricing, practice
tips and predictions”
ABA Journal, May 5, 2013
Metrics Every Law
Firm
Should Know
Timekeeper Analysis
–
–
–
–
–
–
–
Cycle Time per Lawyer
Average Fees per Lawyer
Average Fees per Case
Average Fees per Client
Average Hours per Lawyer
Average Hours per Paralegal
Average Cuts per
Timekeeper
Client Portfolio
–
–
–
–
–
–
–
Total Fees
Total Hours
Timekeeper Average Rate
Timekeeper Staffing Ratios
Blended Rate
Write-offs/Realization Rate
Resource Costs
•
•
•
•
•
•
Metrics Every Law
Firm
Should Know
# of Invoices Per Month
# Ebills & Dollars
# Email & Dollars
# Paper & Dollars
# of Bills Per Billing Staff
# of Client Cuts &
Dollars
• Time to Collect
• Dynamic Reporting
–
–
–
–
Client
Lawyer
Timekeeper
Ebilling Vendor
Now What?
Education
&
Training
Coupled with
Applications/Technologies
Time to Roll Out the Doughnuts
…or Pizza
Audience
Segments
• Executive
• Timekeeper
• Billing & Accounting
Process Makes Success Repeatable
Executive Level
Increased $ in Ebilling Channel
•50-60% of Revenue (US)
Data Collection
• Used to Determine Law Firm Future
Timekeeper Level
Guideline Compliance
•Quality Assurance & Data Input
Time Entry Test
•Does This Task Require Legal
Training?
Billing & Accounting
Level
Submit Ebills Quickly
• Time Limits & Cash Flow Impact
Consistency
• Develop Ebill Submission & Tracking
Protocols
•Who - When - How Much?
Law Firm
Vulnerability
Decades of
Immunity
• Law Firm Leadership
Denial
• Lack of Commitment to
Processes
• No Exposure to Basic
Business Concepts
• Immature Technology
• No Technology
Education
Is it time to update your technology?
Process Makes Success
Repeatable