How to Achieve Up to 99 Percent Accuracy When Predicting Legal Expenses
Justin Silverman of CounselLink, a service provider at the marcus evans Chief Litigation Officer Summit Spring 2016, on legal cost prediction.
Interview with: Justin Silverman, Vice President, Product Management, CounselLink
Las Vegas, Nevada, February 9, 2016 – FOR IMMEDIATE RELEASE
Legal cost control continues to be one of the most important issues for Chief Litigation Officers (CLOs), says Justin Silverman, Vice President, Product Management, CounselLink. In the boardroom, most CLOs no longer get a free pass. “Chief Financial Officers and Chief Executive Officers are demanding that legal departments understand and control costs, and provide updates on the budget throughout the year,” he details.
CounselLink is a service provider at the marcus evans Chief Litigation Officer Summit Spring 2016, taking place in Las Vegas, Nevada, March 20-22. Ahead of the Summit, Silverman discusses outside counsel cost control and how better collaboration with outside counsel leads to more accurate financial forecasts.
Where should a law department start when it comes to controlling outside counsel costs?
There are numerous ways to control costs, all of which revolve around collaboration and alignment with outside counsel. I would highlight three components – the use of budgeting, alternative fee arrangements and analytics – as strong places to start. These mechanisms drive predictability in cost and help control risk.
Why are legal departments under more pressure to predict costs?
With legal costs representing a significant portion of a company’s overall budget, management has to be able to plan for them. Although legal departments used to say predicting outside costs wasn’t possible, that’s no longer the case. Technology that captures information, drives workflows and automates tasks, now makes it possible for legal departments to predict legal costs with a much greater degree of accuracy. In particular, using technology and process to build budgets and establish alternative fee arrangements allows corporate legal departments to achieve a high degree of accuracy in forecasting and controlling their legal spend.
How does the CounselLink solution make an impact in this space?
CounselLink has a robust budgeting capability designed to enhance collaboration between the law firm and the law department. It is a mechanism whereby law firms can input assumptions directly into the system, after which that communication can take place – assumptions can be documented by the law firm, reviewed by the corporate legal department, and sent back over with questions. This helps the two parties align their approach on the matter and expectations, to get the best outcome at the right cost. Several CounselLink customers follow-up on this budgeting process by setting a fixed or alternative fee arrangement based on the agreed upon budget. CounselLink is the only solution in the market that built-in alternative fee functionality from the ground up. Finally, by revisiting the budget on a quarterly basis, using CounselLink, organizations can achieve up to 99 percent accuracy in forecasting their spend on the matters on which they follow this process.
Yet perhaps the biggest driver of cost control and predictability is the use of data and analytics. Corporations can look at the data they collect in CounselLink, analyze that information, and make better decisions moving forward on how to achieve the best outcomes and identify the right outside counsel partners for their needs. Accessing the data, analyzing it and getting insights into the right hands at the right time, that is the critical piece.
Will it make a huge impact on the predicted figure if there are two more or two less legal matters in a year?
The number can evolve over the course of the year. As matters come in, CLOs need to understand their impact and communicate effectively. Assessing the matters quickly and having those discussions provides time to make necessary adjustments and avoid costly surprises.
Contact: Sarin Kouyoumdjian-Gurunlian, Press Manager, marcus evans, Summits Division
Tel: + 357 22 849 313
About the Chief Litigation Officer Summit Spring 2016
The 17th Chief Litigation Officer Summit is the premium forum for bringing leading in-house litigation counsel across the nation together with service providers. The Summit offers a unique forum for service providers to interact with heads of litigation from the country’s leading organizations in an intimate environment. Taking place at the Red Rock Resort & Spa, Las Vegas, Nevada, March 20-22, the Summit includes presentations on FLSA new regulations and overcoming misclassification challenges, international litigation avoidance, minimizing litigation risk, and uncovering new trends and threats.
For more information please send an email to email@example.com or visit the event website www.chieflitigationofficersummit.com/JustinSilvermanInterview
The Legal Network – marcus evans Summits group delivers peer-to-peer information on strategic matters, professional trends and breakthrough innovations.
Please note that the Summit is a closed business event and the number of participants strictly limited.
CounselLink legal spend and matter management solution is cloud-based software for Enterprise Legal Management designed to help corporate legal departments manage operations while providing analytics and benchmarking tools for better decision making. Specific legal spend and matter management features in CounselLink give corporate clients advanced capabilities to evaluate legal department performance and metrics on an ongoing basis. While expert professional services and product support teams help users maximize the benefits of the solution. CounselLink offers innovative and tiered proprietary software solutions to address the unique requirements of both large and small legal departments. The solution has earned an industry reputation for enabling corporate counsel to use data effectively as a basis for improving legal department performance and outcomes. LexisNexis CounselLink Solution is positioned in the ‘Leaders’ Quadrant of the Gartner’s Magic Quadrant for Enterprise Legal Management.
About marcus evans Summits
marcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, case studies, roundtables and one-on-one business meetings. For more information, please visit www.marcusevans.com
All rights reserved. The above content may be republished or reproduced. Kindly inform us by sending an email to firstname.lastname@example.org