publication of the International Legal Technology Association
Issue link: https://epubs.iltanet.org/i/535467
ILTA WHITE PAPER: JUNE 2015 WWW.ILTANET.ORG 13 In a 2014 article for Beaton Capital called "The Big Bang in Big Law," Warren Riddell noted that "Smart clients are demanding insights from their legal providers, the quid pro quo for law firms is being able to embed themselves with their clients to provide a long-term service that actively improves their clients' operations." While expecting more, clients are not extracting every last pound of flesh from firms. As The America Lawyer reported, "For all their price-consciousness, customers continue to pay premium prices when they have to. And even when they don't, they continue to pay large sums, whether on an hourly or flat fee basis." THE VALUE OF TECHNOLOGY TRANSPARENCY For clients to participate effectively in the decision process on case matters, they need accurate, timely information. Technology is bridging this gap and radically altering traditional attorney-client interactions. Integrated software applications provide clients with real-time data about their cases, and firms can continuously monitor the profitability of a matter. These project management solutions enable firms to manage client engagements throughout the life cycle. The benefits to firms are clear and compelling: • Increased efficiency • Transparency • Flexibility to meet client expectations • Improved visibility to matter profitability To make this model work, however, the client also needs tools to monitor how effectively the overall caseload is being handled. The client must feel confident that individual cases are not languishing, that the firm is not settling too many cases or spending too much on settlements, and that the work product meets client standards. In an ideal project management scenario, clients can see the status of any matter — cost and fee charge data, case documents and attorney work product — and see the status of all matters at a macro level. They can view real-time key performance indicators showing the number of cases being settled versus defended, average settlement amount and the time it takes to resolve cases. Firms can closely monitor actual-vs-estimate time spent on tasks, ensuring that a potentially profitable engagement does not turn into a loss. Software applications facilitate this by recording time by phase and task. They also provide insight on where and when more expensive resources have been used, tracking revenue against estimates to ensure there are no surprises for clients. 21% 35% 8% 37% growing at an accelerating pace growing but the pace is slowing declining modestly leveling off TECHNOLOGY: CHANGING THE ATTORNEY-CLIENT RELATIONSHIP FOR THE BETTER! Growth of AFAs