2023 results have been described as “tepid” and “flat-ish” for law firms, influenced by a multitude of factors such as poor scoping of work, spiraling write-offs and a higher cost base. With many predicting a similar story in 2024, it’s vital that firms look beyond more traditional methods for resourcing, collecting and billing. But without firm-wide access to comprehensive data on financial KPIs (like fees, time and collections), management teams will struggle to implement positive, long-lasting change.
Providing your fee earning teams with access to up-to-date data creates a culture shift in mindset and improve profits by:
Strengthening client relationships Inaccurate scoping of work and along with lack of communication during a matter is causing firms to strain the relationships with their clients. For profits to inform, firms need to establish strategies how data can be used to communicate.
Being able to make profitable decisions armed with updated data Without accurate data into the performance of their work. Lawyers and partners are making decisions in the dark. Lawyers need to see how their legal work is progressing to make decisions that will be the most profitable for the firm.
Using the most current performance data to analyze underperforming work will curb profit loss With KPIs such as billable hour still being used within firms and firms pushing for increased awareness and understanding of their performance, lawyers and partners need to be benchmarked against more sophisticated metrics such as client engagement, cash recovery or profit.
So how can you increase commercial awareness within your firm?
BigHand Business Intelligence is an advanced financial BI solution for law firms with role-based reporting that delivers the right financial data to the right person via intuitive dashboards. the flexible data warehouse replaces manual reporting with data visibility from firm level to individual clients and matters. Self-service analytics provide controlled access to relevant metrics in any visualization tool of choice. The solution empowers users to improve cash flow and profitability with immediate financial insight.
Surface key financial & operational metrics from your various business systems
View data as a single source of truth for the law firm’s performance and profitability
Empower users to get the answers they need in an instant
Enable no-code ad hoc reporting for firms with limited resources
Here’s BigHand Business Intelligence in action:
When evaluating the market, we felt that BigHand BI was simple to use and met our goals and needs. The solution provides both high-level numbers, and the ability to drill into the detail to provide users with a better commercial understanding of the firm’s performance. BigHand BI will allow our attorneys to see metrics about their practice that they didn’t have access to previously. Our leadership will also gain better visibility of actionable data and profitability insights relevant to their role. For our finance team, the time saved producing reports can be used to advise on profitability and drive process improvement.
Kevin Twomey, Director of Financial Reporting and Analysis