Solutions Summit

Time for Transformation?TRACK: PRACTICE MANAGEMENT

Chief Operating Officerjan.duke@a360inc.com

You Can’t Do Today’sJob With Yesterday’s

Methods and Remain inBusiness Tomorrow

Life Cycle of a Business

Startup

Growth

Maturity

Death or Rebirth

Decline

Data you should know…

● Profit Margin● Realization Rate ● Files per FTE● A/R Rate● Revenue per FTE● Capacity Utilization

Knowing Where You AreToday is Key

Understanding the Basics

Capacity Utilization

The Story of the Utopia Law Firm

When creating a capacity utilization model in early April, the production reports from the Utopia Law Firm indicate that the firm’s highest complaint production month so far was January. The January production total is the “maximum possible output” and will be part of the capacity utilization formula used for the rest of the year (or quarter).

The following capacity utilization model shows that the firm’s production in the first quarter of the year averaged about 411 complaints prepared per month, divided against two employees. The average number of complaints per employee was about 200.

Value of Planning…

The firm took on a new client in May but management was not clear on the anticipated referral volume or the expected timeline for new referrals and had not previously document current staff capacity by critical task. By July, the First Legal Team was working so hard and so fast to keep up with the increased volume that quality suffered, employee morale was low, and payroll expenses associated with overtime went up. The firm’s scorecards from two servicers were negatively affected due to the quality control findings, and as a result the firm’s referral volume suffered. How could the firm tell future clients what firm capacity was? What data or planning could have prevented this?

Capacity Utilization Formula: Actual Level of Output ÷ Maximum Possible OutputHow does understanding and using a Capacity Utilization Model help manage a firm?

● Measure production volume and staff efficiency● Quantify and estimate production costs● Recognize higher capacity rates and subsequently recognize the need to

monitor the quality of output more closely● Recognize lower capacity rates to identify excess capacity and/or lower market

demand

Creating a Basic Capacity Utilization Tool● Determine which of the most critical production events should be

measured● Obtain prior period production totals● Determine which of the prior months’ production totals are most

relevant for “maximum production.” ● Determine the number employees or fractions of employee time

assigned to the task/production being measured● Consider how frequently to monitor capacity; some production lines

might need to be monitored weekly

Create a basic template with three simple formulasDivide the number of widgets completed by the number of employees assigned to that task for the period reported.

In the column which reflects the highest month’s production add another formula dividing that month’s widgets per employee by the same month’s number of widgets per employee. The outcome should be 100% capacity utilization for that month since it was the best production month.

Divide future months’ number of widgets per employee by the “best” month’s number of employees. The outcome should reflect a percentage comparison to the best month’s capacity utilization.

Transformation Tools● Integration - vendors, clients, ancillary apps● Automation – routine processes● Outsource – ‘back office’;non revenue generating tasks

Integrations worth trying...

QUANDIS

● ADR – Automatic Data Reporting to Freddie Mac● Military Search ● Bankruptcy Search● New Lower Minimum ($50 per month)

iMAILTRACKING

● Outgoing mail production● Returned mail management and storage● End-to-end mail reporting and documentation:

Proof of Mailing, USPS costs, Billing Support Invoices, USPS Return Receipts, Returned Mail Data and Imaging

PROVEST; TSI LEGAL

● Automate your SOP orders● Receive updates● Receive invoice data

PUBLICATION POINT

● Complete legal notice fulfillment● Orders● Verifications● Affidavits● Cancellations

Integrations worth trying...

NETXTRACT thru NetDirector

● Extract the Legal Descriptions● Extract elements from Deed● Intellispell feature included to increase accuracy● Data Response is returned within minutes● Eliminate manual re-keying of data

CourtXpress Efiling

● Automated efiling of first legal Complaints via integrated SOP Vendor or direct

● Efiling of subsequent pleadings via integration● Return of date stamped pleadings● Return of confirmation● Return of fee related elements● Labor savings of 30%+

Portfolio Guardian – Docket Monitoring

● Eliminate manual routine checking of court dockets for activity● Proactive notifications of docket entries● Ability to import results into CMS ● At-a-glance review of findings● Significant labor decrease

Sample ROI – Military Search

ASSUMPTIONS: $17.00 per hour employee + payroll burden/overhead6 minutes per search (all tasks included)

eFiling through CourtXpress

Outsource Options worth Considering

BILLING & COLLECTIONS

Direct Cost Savings● Favorable wage variances (most States)● Economies of scale ● Cycle time ● Coverage ● Transaction based pricing

INDIRECT SAVINGS/VALUE● Quality ● Reduced errors and Losses● Risk Avoidance● Best Practice Guarantee

POC PREP (Form 410A)

Automated preparation of Form 410A● Rapid Scalability● Dedicated Quality Assurance process● No Integration Requirements● Full compliance with client requirements● Eliminate costly data entry errors● Transaction based pricing

Ready for Transformation?Just give us a call!