In order to be a data-driven legal consulting firm, it’s necessary to track every single detail that comes up in the course of your work and stay on the right track of efficiency. In this article, we’ve covered the following ways you can create a more efficient and profitable workplace by being data-driven.
One of the easiest ways to create a data-driven environment in your legal consulting firm is to keep track of your daily work. Law firms should make an effort to document their files, billing, and outlines while working on cases because this will allow for better reporting later on. Keeping detailed records of what you are doing while at work will give everyone in your law firm insight into where time was spent throughout the day which helps everyone be more effective tomorrow.
Put Everything in Writing
Another way to bring more data into your legal consulting firm is by having all conversations with co-workers documented either through email or memo software. This may seem almost no different than keeping notes, but it creates even more accountability when all information is contained in one document. From client phone calls to meeting notes, everything should be written down so that it can be referenced later on.
Keep Track of Tasks and Outlines
One of the most important things for a legal consulting firm to keep track of is what their lawyers and staff are working on at any given time. If each person had a task list with an outline attached to that item, everyone would know exactly what they need to do next while completing their job duties for the day or week. This will allow people within your organization to get more done in less time which will improve morale and lead to better performance overall.
Understand How Much Time you’re Spending on Tasks
Another way your legal consulting firm can become more data-driven is by understanding how much time you’re spending on different tasks throughout the day. If each person had a timer that they were responsible for keeping up to date, then your firm would know what hours of the day you are most productive and when you should be given more work. This can help outside counsel feel less stressed about getting projects done because everyone will understand why certain things take longer than others.
Keep Track of Billable and Non-billable Hour Expenditures
Keeping track of your daily expenses is another way to become better at tracking data in your legal consulting firm which leads to a data-driven environment. Each person within your organization should be required to keep track of any non-billable hours or costs incurred during the day. This will allow for better forecasting and budgeting in your firm which can help you get everything done that you need to while staying on track with your financial goals.
Track Expenses Down to the Penny
It may seem tedious, but tracking every single expense that occurs within your law firm is a must in order to be truly data-driven. If everyone in your legal consulting firm kept track of how much money goes into each file or case, then you would easily be able to see where money is being wasted and what types of cases are actually profitable for the company. This type of information gives everyone in your organization more power when it comes to producing revenue for the entire law office because they will have an edge over competitors who don’t keep track of their money in the same way.
Keep Track of What Types of Clients you Have
Another great way to become more data-driven is by making sure that everyone has access to information about the different types of clients your legal consulting firm takes on over time. If each person had a list of different client types, then there would be no guesswork involved when it came to finding new prospects or getting rid of “bad” clients. This type of information gives staff members at all levels an advantage over others who don’t understand how to market their practice effectively because they will know exactly who should be targeted for marketing purposes.
Track Revenue Generation Per Client vs. Expenses Incurred with Each Client
Tracking revenue and expenses for every single client is one of the most effective ways to create a data-driven legal consulting firm. If everyone in your organization knew how much money each client was generating for your firm and what expenses were incurred with each client, then you would have an easy time forecasting and planning for future revenue. This is because it’s easier to see where certain clients are coming from and whether or not that relationship should be kept intact.
Track How Much Time is Spent on Different Cases
Another way to create a more data-driven environment in your law firm is by tracking how much time people spend on different types of cases. Tracking billable hours will help your outside counsels better forecast their workload while also making sure that they understand what type of return they can get on any given case. This way, they will be more motivated to get the most out of each matter because someone is watching how much time was spent on it and whether or not that amount resulted in a good return.
Track the Average Dollar Value of Every Case
Finally, your law firm should always track the average dollar value of each case. This can be done by making sure everyone knows what kind of information is tracked about their cases and by having easy access to this data at all times so anyone can update it whenever necessary. By tracking this information for each matter within your organization, you will have more control over your financial future since you’ll know exactly how profitable each file has been along with any trends that might arise from different types of files.