publication of the International Legal Technology Association
Issue link: https://epubs.iltanet.org/i/231030
CONDUIT… TOGETHER, WE CAN DO IT! Depending on the level of complexity, potential revenue or visibility for the firm, this matter might require a comprehensive, cross-departmental discussion. Now that pricing directors are getting involved in a lot of these conversations, a new feedback loop to management is created. Pricing directors can have a strategic conversation dedicated to the topic of pricing and management of the matter and provide feedback to other departments to keep everyone on the same page. Ultimately, the vetting process for a matter is enhanced overall. CONDUIT BETWEEN FINANCE AND BUSINESS DEVELOPMENT Pricing is a numerical discussion with a business development backbone. The pricing director role is a natural link between the two functions. We understand we are trying to get to the "right" price, but the discussion is not solely about how to make the most money or give the biggest discount. The conversation is about strategic positioning. Creating a stronger link between pricing and business development allows for a stronger case when providing decision support to the attorneys. Involving my business development colleagues always provides background that I did not previously appreciate about the client relationship. This information exchange goes both ways, and I am able to provide them insight into pricing decisions. I am also ultimately responsible for ensuring this knowledge is captured in our financial systems for future use. CONDUIT BETWEEN BUSINESS AND TECHNOLOGY The pricing director plays a significant role in helping translate business needs to the technology side of a firm. Where possible, I seize the opportunity to put processes in place to automate aspects of pricing, such as rates analysis and monitoring of agreements. In addition, I am continually surveying technology vendors to see what other firms are doing and to provide market insights back to my firm. Lots of new technology has entered the market within the past three years to assist with pricing analysis and project management. The implementation of dashboards and key performance indicators often resides within the pricing function. It is up to this team to figure out how to build these systems (with vendors and firm IT departments) and then to simplify the data into meaningful, actionable items for the attorneys. CONDUIT BETWEEN THE FIRM AND CLIENTS As more of our clients have a legal finance or procurement department managing the law firm relationship, they are eager to have a financial or business contact within the firm to discuss dayto-day management issues. I have been involved in rate and e-billing discussions and have also gotten involved with pricing negotiations. Having a separate, professional staff contact within a client's organization is beneficial to the law firmclient relationship. At times we are able to get more questions answered quickly. A senior litigation partner at one of my former firms offers the following perspective: "Clients are demanding increasingly sophisticated and thoughtful approaches to pricing and cost control. Most attorneys have neither the time nor the skills to provide the types of financial analyses that clients seek. Shifting this responsibility to a dedicated colleague frees me to focus on the tasks I'm good at, and that clients are willing to pay for. At the same time, the client's procurement and finance teams appreciate dealing with someone who speaks the same language as they do, and understands the types of analyses they want to see. It's a win-winwin for the client, the firm and the attorney managing the client relationship." Paul Roy, Senior Director of Finance and Administration at Time Warner Cable, offers the