There’s one silent force driving strategic decisions in every single industry…except legal.
The legal industry has historically shied away from data, resulting in significant inefficiencies and posing challenges for their business. But the legal industry’s data reckoning is upon us – and the enlightened are already experiencing outsized benefits.
Whether you’re building new products or streamlining operations, data is the key to impactful decisions. With 2021 on the horizon, data is no longer a luxury item for corporate legal — it’s a necessity. Departments have no choice but to think about how they can leverage analytics to make strategic decisions that will optimize spend and contribute to their bottom line.
This is particularly critical amidst the global economic crisis caused by Covid-19. With some businesses – and even entire industries – hit harder than ever before, the impact of the pandemic will have repercussions that last well into 2021 (and likely longer). There is an urgent need for data as executives around the world are desperate for better performance at lower prices.
When attempting to rein in spend, legal departments typically start by looking to their eBiller for the requisite data but are consistently disappointed. While great at managing invoices, eBillers were not built to deliver granular analyses. Relying on your eBiller to surface actionable insights is a fool’s errand. But when used in conjunction with platforms like Bodhala, purpose-built for legal data analysis and insights, the results are eye-opening.
At Bodhala, we find that legal departments are often overpaying for their outside counsel, especially when benchmarked against relevant competitors in the market. As your outside counsel begins to circulate their annual rate increases, what insights are you leveraging to ensure you’re receiving a fair price?
Transparency has never been at the heart of the legal services market – but that’s changing rapidly. Companies are demanding market transparency around rates and staffing, and for departments smart enough to jump on the innovation bandwagon early, they’re seeing significant ROI. The results go beyond only rate-driven savings, with companies also reaping the benefits of improved firm selection, optimized staffing, and decreased block billing – to name a few.
To effectively manage your spend and cut costs, you need to think strategically – and to truly think strategically, you need data. Without it, it’s an uphill battle to determine where your priorities should lie.
Ask yourself this: Do I have the data I need to make truly strategic decisions as I plan for 2021? Have I consistently spent more in a particular practice area? Am I paying partner rates for associate-level work? Which law firms are pivotal to my businesses’ matters?
Optimizing spend depends on an awareness of where opportunities for improvement lie. These are insights that only data can surface.
So, how prepared do you feel for 2021?
Learn more about how Bodhala can help your department plan for 2021.