Do You Know How Much Revenue is at Risk at Your Firm?aderantuser
Quick, how many of your firm’s dollars are at risk due to non-compliance with billing guidelines right this very second?
Can you tell me? No worries, I’ll give you a moment…
…have that number yet?
What will it take for you to get it?
If you don’t know the answer to how much revenue is at risk at your firm (or how to get it), you’re not alone. The fact of the matter is, most firms are struggling with compliance issues with Outside Counsel Guidelines (OCG) and the financial fallout due to rejections, reductions, appeals, payment delays, etc. Most firms don’t know how much revenue is at risk, where the risk exists within their client base or timekeeper behaviors or what to do about it.
You don’t have to be like most firms…unless you want to be.
Corporate counsel are using OCG as a lever to achieve cost savings in outside counsel spend and they are using technology (i.e. legal spend management systems and eBilling) to enforce compliance.
On the other hand, firms (managing several unique sets of guidelines) rely on manual processes aimed at achieving compliance, but are simply inefficient, inconsistent, unreliable and inaccurate. Therefore, compliance is elusive and quite frankly, impossible. Corporate counsels have the upper hand, as they’ve dictated what’s acceptable and have technology in place to hold firms accountable. Firms, in general terms, don’t know why invoices are getting rejected, who’s responsible, how much money is flying out the door or how to stop it. Therefore, it’s shrugged off as a cost of doing business – a cost that amounts to more than $15k per day.
Management consultant Peter Drucker is credited with saying “If you can’t measure it, you can’t improve it.” This couldn’t be more true when applied to managing compliance at today’s firms. There is no hope to managing OCG compliance if you don’t have visibility into:
- How many dollars are at risk, right this very minute, before the invoices go out when it might be too late.
- Where are the sources of the risk, whether within certain client accounts and who are those timekeepers.
- Where the errors are located and how to fix them.
Given the financial risk that OCG compliance poses to your firm, this data is not a “nice to have” for your firm, it’s a must-have. It’s time to take a more strategic approach to OCG compliance, and that starts with having access to the data to drive decisions and actions. Honestly, can you really afford not to?
There IS a solution to this challenge. Here is a sample of what you need to be measuring day in and day out so you can regain control over your billing compliance and cash management.
Ready to know your firm’s number? Our team of experts can help you determine how many dollars are at risk at your firm and what to do about it.