Optimizing profitability while strengthening client relationships in times of uncertainty and changing paradigms.
The profitability of a law firm traditionally has been driven by billing the maximum number of hours for a given matter at the highest possible rate, a formula that is increasingly fragile. Now profitability is driven by building and retaining strong client relationships with pricing and fee structured that align the buyer and seller of legal services.
Lawyers must understand their client’s threshold issues regarding legal work; it is derived from a client’s business activities, market position, strategies and risk tolerance? Are all your lawyers able to answer the questions: Why is this matter important to this client? What are their business objectives? The answer should inform how the work is done as well as the legal strategy and tactics.
Legal work should be handled and priced in a manner that reflects a well-considered business model and the firm/client relationship. Does the client consider the law firm to be a valued partner of corporate stakeholders or are they considered outsourced resources? How does the client’s view of legal spending call for optimization of skills, work flow, sourcing and technology?
Understanding that the main constraint within many law firms is the compensation system, QLex addresses how to provide incentives to drive change to promote profitability for the law firm and predictability and service for the client.
QLex supports firms in four key areas:
- Legal Project Management: internal teamwork, collaboration with the client, work plans, timelines, budgets, and lessons learned from prior engagements
- Fee Structures and Pricing: maximizing realization, defining incentives, developing critical skills needed, implementing processes to support fee structures, budgeting, monitoring, warning flags, and getting results
- Budgeting, Forecasting and Monitoring: from basics to advanced tools and techniques and supporting technology
- Data Analytics and Business Intelligence: Understanding the data you already have, determining what you need, and learning how you can translate the data into information you can use to improve pricing, profitability, and support business development