Issue link: https://epubs.iltanet.org/i/30285
ASK THE EXPERT: UTILIZING BUSINESS INTELLIGENCE WITHIN THE LEGAL ENVIRONMENT bottom-line level, and does that have some impact on partner compensation? Josh: BI gives attorneys two important tools: time and actionable information. Real-time information and statistics, in a format that’s easily consumed and comprehended, enable an attorney to make better decisions faster. And actionable information based on historical data, rather than a sea of data and merely regurgitated standard measures, allow him to make truly informed decisions. Mark: BI can bring together data from disparate matters so the department or law firm can conduct analysis, review KPIs and make predictions based on past outcomes. Thus, attorneys can see the relationship between different data for better decision-making and optimal deployment of internal and external resources. How can business intelligence software help law firms save money? Mark: BI can uncover the true cost of assigned work and help attorneys make strategic sourcing decisions earlier in the matter cycle. This helps manage matters at an individual and aggregate level to ensure that key resources aren’t consumed by performing less profitable tasks. John: It can also shorten the period of time between project completion and payment, as well as minimize billing write-downs and write-offs. There are a lot of different ways in which these metrics can be impacted by performance of the firm, and it’s the access to BI information that helps people understand how performance is going and how to impact the result, ultimately, saving money. But the biggest impact here is probably not how much money they can save, but how much they’re not spending. Josh: A good BI implementation will provide one version of the truth, instant answers from an easy-to-use and centralized location, and the ability to automatically generate a report of analytics that are targeted to key firm personnel. This reduces the amount of time spent by law firm staff. Providing the correct information to the right decision makers at the right time not only reduces administrative overhead, but also allows better decisions, potentially better opportunities and, in the long run, more profitable engagements. What are the benefits of a “pull” environment as it relates to the dissemination of BI information? Josh: The benefits of migrating from the old- school “push” method of emailing content to attorneys and key decision makers to a “pull” environment of targeted BI information are multifold. Primarily, you’re placing information in the hands of the attorneys in a more expedited fashion. You also have the opportunity to increase administrative efficiency by more effectively managing staffing levels. Once you have a truly automated process in place, there is less manual overhead on the backend. There’s also less reliance on email storage. www.iltanet.org Financial Management 39