International CoSourcing Group - Financial Management and Reporting

Management in law firms today require more insightful, timely and accessible reporting of financial results and events to better manage the Firm. Accounts Receivable, WIP, origination and production reports, while useful, do not provide a complete enough picture to successfully manage a large, complex and growing Firm. •Additional information to manage the Firm’s practice and evaluate business risks must be made available in a timely and innovative format to the Firm’s management and partners.

•Management reports should track the key drivers of the Firm’s strategy and be widely available. •Additionally, a Firm should be capable of creating custom reports based upon the Firm’s most recent data in a timely and cost efficient manner. •These reports need not be on paper but distributed through the Firm’s Management Information Portal.

We assist clients with identifying Key Performance Indicators (KPIs). KPIs must be:

•Linked to Firm Strategy
- Can the measure be aligned with an Firm’s strategic objectives?
•Controllable/influenceable
- Can the results be controlled or linfluenced by the individual measured?
•Actionable
- Can action be taken to improve performance?
•Simple
- Can the measure be easily and clearly explained?
•Credible
- Is the measure resistant to manipulation?
•Measurable
- Can the measure be quantified?

Some sample KPIs include:

•Partner and Client/Matter Profitability
•Client Investment Return Analysis
•Actual to Budgeted Fees at Completion of Matter
•Net Fees per Hour
•Partner Matter Leverage
•Adjusted Annual Fee Billings

	April 12, 2006

Financial Management and Reporting Management in law firms today require more insightful, timely and accessible reporting of financial results and events to better manage the Firm. Accounts Receivable, WIP, origination and production reports, while useful, do not provide a complete enough picture to successfully manage a large, complex and growing Firm. •Additional information to manage the Firm’s practice and evaluate business risks must be made available in a timely and innovative format to the Firm’s management and partners. •Management reports should track the key drivers of the Firm’s strategy and be widely available. •Additionally, a Firm should be capable of creating custom reports based upon the Firm’s most recent data in a timely and cost efficient manner. •These reports need not be on paper but distributed through the Firm’s Management Information Portal. We assist clients with identifying Key Performance Indicators (KPIs). KPIs must be: •Linked to Firm Strategy - Can the measure be aligned with an Firm’s strategic objectives? •Controllable/influenceable - Can the results be controlled or linfluenced by the individual measured? •Actionable - Can action be taken to improve performance? •Simple - Can the measure be easily and clearly explained? •Credible - Is the measure resistant to manipulation? •Measurable - Can the measure be quantified? Some sample KPIs include: •Partner and Client/Matter Profitability •Client Investment Return Analysis •Actual to Budgeted Fees at Completion of Matter •Net Fees per Hour •Partner Matter Leverage •Adjusted Annual Fee Billings	LEGAL BUSINESS INSIGHT INTO:
	Strategic Cost Reduction
	Purchasing InSight Law Firm Evaluator Benchmarking Discovery Services OutSourcing / CoSourcing
	Strategy and Operations
	Strategy Development Financial Management Partner Compensation Mergers and Acquisitions













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