Using analytics to
control and reduce
legal spend
Ian Nolan
CEO, Legalshine
www.legalshinehq.com
There is an average budget overrun of
25% on our banking matters with Law
Firm A.
On this matter, over 80% of the work
was done at partner level, and 92%
Average cost of our debt recovery
matters is €9,300 – which is 40%
higher than other similar companies
in our industry
The benefits of technology and analytics
•
Informs decision making
•
Consistency across entire organisation
•
Complete transparency and accountability
•
Monitor and enforce budgets
•
Analyse your key metrics
DRAFT INVOICE
-
211300
LAW FIRM
MATTER
- 211300
CORPORATE
TOTAL
: €26,000
Review emails from Emily & Declan 03-05-14 Mary Hourican 00:10 €415 €69.20 Review
Telcon Declan Hennesy. Review draft letter to Tony O’Malley & email comments to Declan
20-05-14 John Allen 00:40 €415 €276.60 Phone Call Review Email
Telcon Aiden Lee. Email Declan Hogan re banking & trust implications of release of security over 2 Banbridge houses.
25-05-14 Mary Hourican 01:15 €415 €515.00 Phone Call Email
Telcon Declan Hogan. Review draft letter to Aiden Lee & email comments to Derek
20-05-14 Mary Hourican 00:40 €415 €276.60 Phone Call Review Email
Telcon Aiden Lee. Email Declan Hogan re banking & trust implications of release of security over 2 Banbridge houses.
25-05-14 Mary Hourican 01:10 €415 €515.00 Phone Call Email
Drafting Completion Board Minutes 20-05-14 John Allen 06:15 €380 €2,375.00 Drafting
DESCRIPTION DATE TIMEKEEPER HOURS RATE TOTAL Category
INVOICE BREAKDOWN
32%
€26,000
Spend
€80,000
Budget
73% : 17%
ASSOCIATE : PARTNER
1
INCORRECT RATE
1
SIGNIFICANT TIME SPENT
8
BLOCK BILLING
FLAGS
33%
24%
19%
13%
11%
Client Comms
Internal Comms
Drafting
Research
Correspondence
€8,580
€6,240
€4,940
€7,650
€6,800
DRAFT INVOICE
-
211300
ARTHUR COX
MATTER
- 211300
CORPORATE
TOTAL
: €26,000
Review emails from Emily & Declan 03-05-14 Mary Hourican 00:10 €415 €69.20 Review
Telcon Declan Hennesy. Review draft letter to Tony O’Malley & email comments to Declan
20-05-14 John Allen 00:40 €415 €276.60 Phone Call Review Email
Telcon Aiden Lee. Email Declan Hogan re banking & trust implications of release of security over 2 Banbridge houses.
25-05-14 Mary Hourican 01:15 €415 €515.00 Phone Call Email
Telcon Declan Hogan. Review draft letter to Aiden Lee & email comments to Derek
20-05-14 Mary Hourican 00:40 €415 €276.60 Phone Call Review Email
Telcon Aiden Lee. Email Declan Hogan re banking & trust implications of release of security over 2 Banbridge houses.
25-05-14 Mary Hourican 01:10 €415 €515.00 Phone Call Email
Drafting Completion Board Minutes 20-05-14 John Allen 06:15 €380 €2,375.00 Drafting
DESCRIPTION
DATE TIMEKEEPER HOURS RATE TOTAL
CATEGORY
INVOICE BREAKDOWN
32%
SPEND
€26,000
BUDGET
€80,000
(INCLUDING THIS INVOICE)
CLIENT COMMS €8,580 33%
INTERNAL COMMS €6,240 24%
DRAFTING €4,940 19%
RESEARCH €7,650 13%
CORRESPONDENCE €6,800 11%
73% : 17%
ASSOCIATE : PARTNER
1
INCORRECT RATE
1
EXCESSIVE TIME SPENT
21
BLOCK CILLING
!FLAGS!
Telcon Declan Hennesy. Review
draft letter to Tony O’Malley &
email comments to Declan
20-05-14
John Allen
00:40
€415
€276.60
Flag:
Incorrect Rate
Panel Rate for John Allen
(Associate) should be €380
Drafting Completion Board
Minutes
24-05-14
John Allen
06:15
€380
€2,375.00
6.15 hours drafting
may be excessive
Flag:
Significant Time
DESCRIPTION
DATE TIMEKEEPER HOURS RATE TOTAL CATEGORY
TOP ACTIVE MATTERS
€3,420,000
spend this quarter
WIP
€8,116,230
spend year to date
BY LAW FIRM
FIRM BUDGET SPEND
Law Firm 1 €525,000 Law Firm 2 €310,000 Law Firm 3 €110,000 Law Firm 4 €110,700 Law Firm 5 € 24,300
BY DEPARTMENT
DEPARTMENT BUDGET SPEND
Banking €825,000 Insurance €710,000 Lending €310,000 Corporate €210,000 Debt Securities €109,000
BY PANEL
PANEL BUDGET SPEND
Panel 1 €625,000 Panel 3 €410,000 Panel 2 €210,000 Panel 4 €210,000 Panel 5 €103,450
MATTER TYPE LAW FIRM DEPARTMENT BUDGET SPEND
Ireland Investments Ltd.
Litigation Law Firm 1
Client vs Peter Murray
Litigation Law Firm 2
Debt Restructuring – Monkstown
Corporate Law Firm 3
Project Goal
Corporate Law Firm 4
Mary O’Kelly - High Court Proceedings
Litigation Law Firm 5
Banking
Insurance
Lending
Corporate
Debt Securities
€90,000
€120,000
€30,000
€90,000
€95,000
€144,000
€38,000
€34,356
€22,000
€22,000
160%
31%
105%
34%
31%
TIMEKEEPERS (3):
John Mullen
Mary Smith
Brian Kelly
(Solicitor)
(Partner)
(Associate)
€17,000
€ 6,400
€12,600
Client vs PETER MURRAY
Law Firm
LITIGATION- 3184/00434
BILLED
WIP
48%
SPEND: €36,000
BUDGET: €90,000
STAFFING
TRAINEE
7%
PARTNER
23%
ASSOCIATE
56%
SOLICITOR
14%
Work Breakdown:
Client Comms
Internal Comms
Drafting
Research
32%
29%
24%
15%
€12,000
€8,640
€6,840
€4,680
LITIGATION
BANKING
PROPERTY
Law Firm
PANEL 1
€34,000
ACTIVE MATTERS
MATTER TYPE DEPARTMENT BUDGET SPEND
Ireland Investments Ltd.
Litigation
Client vs Peter Murray
Litigation
Debt Restructuring - Monkstown
Corporate
Project Goal
Corporate
Banking
Lending
Insurance
Debt Securities
€90,000
€120,000
€30,000
€90,000
€144,000
€38,000
€34,356
€22,000
160%
31%
105%
34%
17 Flags raised
8 Flags actioned
€1,220,230
total spend
CORPORATE
€123,000
total spend
€24,000
av. cost
(
12%
higher than Panel 1 av.)€114,000
total spend
€293,000
total spend
€18,000
av. cost
(
8%
higher than Panel 1 av.)€8,000
av. cost
(
2%
higher than Panel 1 av.)€123,000
total spend
€24,000
av. cost
(
