Client-Matter Level Budgeting

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Client-Matter Level Budgeting

• Douglas M. Graham, Director of Administration,
  Fay SharpeJill Milkovich, Regional Systems
  Trainer, Squire SandersDave Moravcik, Finance
  Manager, Squire Sanders

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Session Objectives

• Gain appreciation of Why Important
• Understand elements of Project Management
• Gain ideas on how to support attorneys in process
• Gain ideas on how to implement

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Why?
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Our Clients are Asking for PM

• Does the firm have a formal process that enables
  it to forecast, track, communicate and manage a
  budget effectively? If yes, please describe.

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Our Clients are Asking for PM

• Please describe how your firm would handle the
  project management of MA transactions,
  especially in a highly matrixed organization.

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Our Clients are Asking for PM

• Include in your description examples of any
  reports, work summaries, or other tracking
  mechanisms your firm would use to communicate
  with us and how the attorneys working on the
  matter will be coordinated within your firm.

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What is Project Management?

• A project is "a temporary endeavor undertaken to
  create a unique product, service, or result."
• Project management is "the application of
  knowledge, skills, tools, and techniques to
  project activities to meet the project
  requirements." 

Project Management Institute, A Guide to the
Project ManagementBody of Knowledge (4th ed.
2008)
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Project Management Life Cycle
Phase 2PLAN Develop Proposed Solution Design
Phase 1 DEFINE Identify Need Visualize End
Result Initiate Processes
Phase 3 IMPLEMENT Perform the Project Execute
and Control Processes
Phase 4 CLOSE Complete the Project Close
Evaluate
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Phase I DEFINE

• Clearly visualize end result
• Identify stakeholders
• Determine how success will be measured

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Project Vision Statement

• Purpose
• Description
• Desired Results

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Example Billing Guidelines
All work performed shall be pursuant to a Work
Plan and Budget shall reflect realistic
projections of fees and expenses It is the
expectationthat actual fees and costs will not
exceed these projections. Revisionsto reflect
changed assumptions, unanticipated tasks, etc.
must be discussed with and agreed tobefore they
are made. must reviewat least on a quarterly
basis and revise it
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Project Management Life Cycle
Phase 2PLAN Develop Proposed Solution Design
Phase 1 DEFINE Identify Need Visualize End
Result Initiate Processes
Phase 3 IMPLEMENT Perform the Project Execute
and Control Processes
Phase 4 CLOSE Complete the Project Close
Evaluate
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Phase II PLAN

• Work plan
• UTBMS
• Work elements, definition, deliverables,
  timelines

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Phase II PLAN

• Staffing plan the right people for the right job

To promote effective use of time and skills, we
request that Counsel.assign the appropriate
minimum number of staff and appropriate level of
legal talent to each matter. For instance, we
expect that tasks that do not require the skills
of a lawyer will be done by paralegals and tasks
that do not require the skills of a partner will
be done by associates or paralegals. When more
complex matters may be handled more cost
effectively by a partner with expertise in the
subject matter, rather than by an associate, we
expect the partner to be used.
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Apply Prior Experience

• Weve all done this before
• Find similar cases/projects
• Use UTBMS codes to assess past projects
• Outside/Local counsel
• Measure the need
• Budget in disbursements

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How to Turn it into a Budget

• Concepts behind building budget models
• It takes two to tango
• Measure Statistics
• UTBMS codes costs per phase
• Time spent per case
• Will we be profitable?
• Open v. Closed Timekeeper Choices
• Do we choose timekeepers for case
• We have more leeway
• Are we told who to use

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External Resource Plan Outside Vendors

• Monitor vendors/projects
• Large projects weekly review
• Smaller projects monthly review
• Central authority for review/approval process
• Consistency
• Eliminates duplication
• Outside/Local counsel

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Planning for the Unexpected

• Phasing
• Decision trees/value analysis (risks rewards)
• Go/No Go factors

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Phase III EXECUTE

• Managing the Project
• Communication
• Its all about the deliverables
• Managing the Client
• Communication
• Change orders
• Gaining buy-in decision sign off, planning
  participation

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Accounting for Progress Changes

• Attorney who understand the case/project
• Are we where we need to be?
• Dollar-wise
• Project-wise
• Adjustments for change in scope

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Billing

• Bill regularly
• Use progress bills
• Quarterly bills bill promptly
• Keep and eye on A/R
• Monthly retainer?

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Phase IV Close Evaluate

• How did we do?
• What did we learn?
• What can we do differently next time?

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Links

• ACC Value Challenge
• Legal Project Management

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Questions?