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AFADATA® is a proprietary system for analyzing data and building cost models to show what different items of legal work cost on an “all in” basis. Far beyond rates and discounts, AFADATA® analyzes law firm efficiency to track the main component of law firm spending.

 

Benefits –

  • Savings: via up-front cost reductions to trim inefficiencies
  • Predictability: improving law firm performance vs. budget via better tracking and accountability
  • Alternative Fees: offering different options to move away from hourly rate billing to improve value and better align interests between client and firm
  • Strong business case: to show Legal is soundly managing its finances and external spending
  • Superior data: clients can have greater insight as to what different items of legal work cost, and which law firms offer greater value in producing the work.

 

How it works –

  • Client identifies a core number of similar matters for inclusion (suggest minimum of 10)
  • Communications go out to select law firms working on these matters to explain project and approach to Value-Based Budgeting
  • Law firms complete proprietary AFADATA® yearly budget templates regarding Fees, Expenses, Staffing and Forecast (1 page each)
  • Historical billing data (past 3 years) is loaded into an Excel file and transmitted via secure FTP upload. (Data can come from e-billing system, or from law firms)
  • AFADATA® team analyzes the historical data and creates Findings & Recommendations Report, to be reviewed with client team
  • AFADATA® team analyzes law firm budget proposals, builds customized cost model, compares figures across the portfolio and vs. historical data, and creates matter-specific recommendations to improve value (e.g. trim inefficiencies, consider alternative fees etc.)
  • AFADATA® team meets with client team to review matter-specific recommendations
  • Client team implements those recommendations that best fit overall strategy and financial goals
  • Communications go back to law firms regarding requested revisions and adjustments
  • Law firms update budgets and plans accordingly, and submit revised budget for baseline tracking in the coming year