With the acceleration of digitisation and data capture in business, the true power and potential of data analysis are becoming clearer.
Data analysis provides insights that can guide us to make informed business decisions to drive efficiency and increase profitability.
iHub recently undertook a data analytics project for a client that directly impacted the bottom line.
Clients are increasingly looking to their partners and advisers to provide better value and budget certainty for services. Lander & Rogers' Insurance Law & Litigation team was asked by an insurer client to develop a proposal for a fixed-fee pricing model for legal advice relating to claims that would improve costs certainty for the client.
A cross-disciplinary team of lawyers and data analytics experts undertook a deep analysis of captured data to understand trends, patterns and outliers in the client's matters, as well as conducting a historical review of team structure and time spent on matters to determine where work processes could be enhanced, streamlined and automated.
1. Understanding the historical fees, trends, and outliers
The team reviewed the data to understand historical fees and patterns across the client's matters, analysing the causes of "normal" and outlier sets and determining the profile and characteristics of a common, representative matter.
2. Examining team and workflow structure
The project team examined the staffing and workflows on historical matters, with a focus on the most efficient matters and how results were achieved. This provided a better understanding of the staffing mix and team structure required for different matter types.
3. Clarifying and containing the scope
Lander & Rogers worked with the client to clarify and contain the scope of the revised fixed-fee model and agree on which matter types would be included and excluded for optimum cost certainty.
4. Agreeing and setting fees
Once the scope of the new fee structure was agreed upon, Lander & Rogers analysed billing data to develop a mutually agreeable pricing model based on the median costs charged to the client during the sample time period.
5. Innovating and optimising
Following agreement on the cost structure, Lander & Rogers used the data insights gathered to further innovate and optimise the delivery of legal services to the client. This included ensuring an even allocation of senior staff across future matters; and identifying opportunities for automation in work processes that would further enhance efficiency and value.
Transitioning the client to a fixed-fee model and implementing resourcing and administration changes has resulted in considerable benefits for the client and Lander & Rogers. For the client, the new pricing structure has created increased certainty and predictability around costs; and for Lander & Rogers, gaining deeper knowledge of work processes and the factors driving efficiency and productivity has led to improved client experience and better service delivery.
Starting your data journey
If your organisation would like to learn more about the possibilities of data analytics and how they can benefit your business, please contact a member of our team.
1 Innovation in pricing, Victorian Legal Services Board and Commissioner: https://www.lsbc.vic.gov.au/lawyers/legal-costs/innovation-pricing.
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