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There is a misperception in the legal industry that there is an imbalance of economic information as between law firms and their clients. The truth of the matter is that both law firms and their clients have access to comparable data. This billing data could be using more effectively if buyers and sellers of legal services collaborated around it using modern data analytics tools. This level of transparency will make the practice of law value driven and will benefit all parties.
Legal spend analytics is not about taking sides. Corporations want their law firm as a partner in a long-term relationship, not a fungible vendor where they continually beat down the fees. Similarly, law firms want to differentiate themselves in the market by providing exceptional value. The perceived imbalance of available information occurs because law firms and clients view the situation from different perspectives with focuses on different things. At bottom, the same raw data memorialized in the invoice can be strategically transformed into mutually beneficial business intelligence.
Legal Decoder helps clients and law firms re-imagine data to see the whole picture from both sides. Our technology neutrally and objectively surfaces unique insights helping law firms and their clients see both spend and value. This affords law firms and their clients an unbiased, accurate depiction of the entire situation. With the ability to see it from each other’s viewpoint they can use the available data in a coordinated manner to yield better economic results as well as improved value for every dollar spent.
It’s like going to the doctor; they can only help if you truthfully disclose what is going on. Our clients have noticed the following using our Legal Spend Analytics engine:
- Better economic results for everyone;
- Improved efficiency and value for each dollar spent;
- Access to actionable data that informs legal spend decisions;
- Budgets that are informed by what should have happened;
- A stronger, tighter relationship with increasing trust and engagements on more matters; and
- Powerful and honest conversations.
When it comes down to it, law firms and their clients are on the same side fighting a common enemy (e.g., the counter-party plaintiff or defendant, buyer vs. seller, the IRS, etc.). With aligned data insights, it is the client and their law firm against their opponent not the firm versus client. Analytics generated by Legal Decoder become a resource for law firms and their clients. A collaboration around data is an effective tool for law firms and their clients to defeat their shared opponent. The duality of legal spend analytics generate results that speak for themselves.