Unlocking innovation in legal billing: Beyond expensive tech investments

May 17, 2024

In the dynamic world of legal services, the term “innovation” often conjures images of hefty technology investments. However, the essence of true innovation lies not in the tools themselves, but in the strategic optimization of existing practices to enhance organizational efficiency. For law firm leaders, the challenge is to innovate within the billing/e-billing process without incurring prohibitive costs. Here’s how:

Rethinking attorney-to-staff ratios: The balance between attorneys and support staff is crucial. By evaluating and adjusting these ratios within billing and collections, firms can achieve optimal productivity. Although technology can be an excellent tool, it’s important to prioritize focus on building an efficient process combined with adequate and experienced staffing.

Billing complexity modeling: Innovation can be as simple as a new approach to managing work in progress. By considering factors like billing task complexity and the involvement of multiple clients and matters, firms can create a scaling model that systematically gauges billing/e-billing complexity, leading to more efficient management.

Redefining responsibilities for compliance and client interaction: Who handles compliance reviews or client interactions can make a significant difference. By redistributing these tasks, firms can foster specialization and enhance the overall billing experience for clients.

Maximizing existing resources: Innovation also means making the most of what you already have. Assigning tasks to the appropriate level ensures that high-fee earners aren’t bogged down with work that could be efficiently handled by others.

Building collaborative partnerships: A collaborative partnership with the finance team can unlock a wealth of skills and insights. Similarly, fostering relationships between account managers and clients emphasizes client satisfaction and comprehensive account management, a key to successful billing operations.

Breaking down siloed structures: The traditional biller-collector structure is becoming obsolete. A singular point of contact for billing processes is now preferred for its cohesiveness and efficiency. This shift requires a change in mindset rather than a new software purchase.

Case study: Transforming billing efficiency with process innovation

Here’s a case in point that demonstrates unlocking innovation by establishing a strong process backed by technology: recently, a leading US law firm was struggling with an inconsistent legal billing/e-billing process and high staff turnover due to high billing volumes. This led to erroneous Outside Counsel Guidelines (OCGs) causing issues with a key client. Williams Lea implemented a thorough overhaul of the law firm’s billing process by bringing in an experienced team that established a documented and comprehensive workflow process using our proprietary ENGAGE Service Management tool and included a billing review designed to minimize errors with OCGs. The results: the new billing practices from our dedicated and experienced team, and the transparency through reporting provided by ENGAGE Service Management have greatly reduced billing rejections and increased recoverable revenue by 30%.

Innovation in legal billing/e-billing doesn’t have to be synonymous with expensive technological investments. By reimagining and optimizing what’s already in-place and focusing on strategic management, task distribution, and collaborative partnerships, law firm leaders can drive efficiency and satisfaction without necessarily needing tech upgrades. This approach not only saves money but also positions firms to adapt quickly to the ever-changing legal landscape, ensuring they remain competitive and client-focused in an industry where efficiency, especially with billing and collections, is paramount.

Find out more on how Williams Lea’s specialist financial support teams can transform your law firm’s billing process to get your fee-earners paid faster.