33
WWW.ILTANET.ORG | ILTA WHITE PAPER
FINANCIAL MANAGEMENT
MORE ONLINE!
Joe Buser of Traveling Coaches interviews
Tim Armstrong, COO of Vinson & Elkins, LLP
As law firms continue to evolve, they are looking
more like other businesses. Organizational
changes, mergers and an emphasis on the
bottom line are changing the way law firms
operate. No one knows this better than Tim
Armstrong, COO of Vinson & Elkins, LLP (V&E). Now
in his twenty-third year at V&E, Tim has played
several roles, including CIO and CFO, before
ascending to his current position in 2009. During
his tenure, he has seen the firm grow not only
in size but also in complexity. He has witnessed
economic booms and busts; throughout it all, V&E
continues to thrive.
read this article >>
The Cost-Benefit Analysis Process: Making an Educated Decision
Wrapped into this model is the necessary net present value
calculations and interest. This can provide you with the financial
benefits of each such increment, for example:
One minute more of billable time
captured
£200k annually
One minute saved per consultant per day £36k annually
One percent of increased business £100k annually
One percent of increased realization £400 annually
Then you can flex the model in relation to each of the core projects
only by the amount required to cover the proposed investment.
Normal CBAs oen render figures regarded by the business as
unrealistic (e.g., a 20 percent increase in turnover); here, the benefit
factors identified reflect tiny improvements. If the firm believes such a
small change is feasible, saying yes becomes easy.
Educated Decisions Abound
The traditional methodology of a cost-benefits analysis and additional
analyses can help you make educated business decisions as to whether
to proceed with any proposed potential IT initiative. Keep in mind risk,
urgency, integrations, dependencies and non-financial issues as you
complete your next CBA. ILTA
NEIL CAMERON
Neil Cameron is a leading law firm
technology consultant and English
barrister. Neil worked for LexisNexis,
Allen & Overy and KPMG before setting
up his own consultancy, which now has
a team of four legal IT professionals. Neil
and his team have advised hundreds of
law firms throughout the globe on IT
strategies, reviews and the procurement
and implementation of systems.
Contact him at neil@nccg.it.
Download the ILTACON session recording
and presentation materials on this topic >>
Why the
Boom Line
Should Be
Top of
Mind
