Stats and the Flat Fee - BASF


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  • This is GoToWebinar, the product we are using for this webinar, you will notice that there is a Questions box on the bottom right of your panel where you can enter in questions as we go through the webinar. I will go back and answer them at the end. You can raise your hand which looks like a hand icon with an up arrow underneath. If you are having technical difficulties, meaning you cannot see my mouse moving around the screen or you can’t hear me, please click on this and then type into the questions panel exactly the problem you are having so we can address it as quickly as possible.

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  • Practice management software and strong data entry habits.

    Time tracking in Clio, using outside trackers like Chrometa
    ----- Meeting Notes (2013-08-15 13:50) -----
    Continuous data set vs. discreet

    Include tracking time for every activity, not just billables
  • Bills were a traditional method of tracking the

    Using a Practice Management Platform, like Clio, or a Cross-Application Timer, like Chrometa.

    Billing All the Time
    by Josh Camson on the Lawyerist

  • There are 120 working days in the year, so far.

    At 8 hours a day, I’ve now worked 960 hours.
  • At 8 hours a day, I’ve now worked 960 hours.

    If I bill 4 hours a day on a Criminal matter, 2 hours a day on a Civil matter, and track 1 hour a day doing Administrative work, like Client Development, Bills, Staff Meetings, Vendor Handling, etc., by today, I’ll have tracked:

    480 billable hours in Criminal Matters
    240 billable hours in Civil Matters
    120 hours of Administrative work

    I would also know that I still have 120 hours of unlabelled time. What would you do with 120 more hours in this year?

    Now imagine you could do the same tracking on which is more effective phone calls or emails to opposing counsel, do higher hourly rates lead to better clients, when is the best time to send a bill to client in order to get paid.

    This data exists, you just need to track and analyze it.
  • 5 activities: Research, Drafting, Phone Calls, Meetings, and Court Appearances

    4 practice areas: criminal, family, real estate, and civil litigation
  • Can generate your trust account reconciliation data
  • Stats and the Flat Fee - BASF

    1. 1. Statistics and the Flat Fee Joshua Lenon Lawyer in Residence Clio
    2. 2. Statistics and the Flat Fee Joshua Lenon Lawyer in Residence Clio
    3. 3. Agenda • Tracking Data • Data Sources in Clio • Control Charts • Flat Fees • Questions
    5. 5. The question is not “how big is your data?”, it is “what are you are doing with your data?” - Dave Fowler;
    6. 6. Are you generating trackable data?
    7. 7. What Data Do Lawyers Track? • Hours • Rates • Types of Cases • Lengths of Cases • Case Resolution Outcomes • Clients’ Legal Histories • Amounts Billed • Payments Received
    8. 8. Ways to Generate Data • Bills Sent • Tracking Time • Custom Fields • Expenses • Consistency
    9. 9. What Can Lawyers Determine? • Financial Health of Firm • Profitability of Clients Over Time • Average Earnings Per Case by Practice Area • Profitability of Practice Areas Per Effort • Productivity of Associates • Projected Workload by Case Type
    10. 10. 0 1 2 3 4 5 6 7 8 9 01/01/2014 Time Time
    11. 11. 0 5 10 15 20 25 30 35 40 45 01/01/2014 01/08/2014 Time Time
    12. 12. 0 20 40 60 80 100 120 140 160 180 01/01/2014 01/08/2014 02/01/2014 Time Time
    13. 13. 0 200 400 600 800 1000 1200 01/01/2014 01/08/2014 02/01/2014 06/23/2014 Time Time
    14. 14. 0 200 400 600 800 1000 1200 01/01/2014 01/08/2014 02/01/2014 06/23/2014 Time Criminal Civil Admin
    15. 15. How Big Is Your Data? A lawyer tracking 20 hours a week would have 4,640 pieces of data, since 2010. Track 5 types of activities and you have 23,200 pieces of data. Track 4 practice areas and you have 92,800 pieces of data.
    17. 17. Reports
    18. 18. Client ActivityReport
    19. 19. Client Activity Report
    20. 20. CONTROL CHARTS
    21. 21. Control Charts If analysis of the control chart indicates that the process is currently under control (i.e., is stable, with variation only coming from sources common to the process), then no corrections or changes to process control parameters are needed or desired.
    22. 22. Control Charts
    23. 23. Steps 1. Start predicting costs 2. Subtract actual costs from predicted costs 3. Calculate the average difference between predicted and actual costs 4. This average difference is the center of your chart
    24. 24. Control Charts
    25. 25. Steps Continued 5. Calculate the Moving Range (MR) by subtracting the difference between each successive data points. Ex.: Pt.1 – Pt. 2 Pt. 2 – Pt. 3 Pt. 3 – Pt. 4
    26. 26. Steps Continued 6. Calculate the AVERAGE Moving Range (MR) 7. Calculate the Upper Control Limit
    27. 27. Control Charts
    28. 28. Last Steps 8. Calculate the Lower Control Limit 9. Graph everything on a chart
    29. 29. Control Charts
    30. 30. FLAT FEES
    31. 31. Hours vs. Billing You should run a control chart for both hours and billing.
    32. 32. Client Activity Report
    33. 33. Control Charts
    34. 34. Further Help
    35. 35. QUESTIONS?
    36. 36. Thank You Joshua Lenon @JoshuaLenon