Bankruptcy Series – Staffing Efficiency
This post in the Legal Decoder (LD) Bankruptcy Series discusses Staffing Efficiency which refers to utilizing the appropriate staffing levels and experience for work tasks. The first post discussing Billing Hygiene can be viewed here and the second post discussing Workflow Efficiency can be viewed here.
The fast-paced, intense nature of bankruptcies can be open to staffing issues. Experienced attorneys may bill for administrative work or work meant for less-experienced attorneys. Inexperienced attorneys may be assigned tasks above their experience levels which could result in workflow inefficiencies and incorrect work. Too many attorneys can bill for the same call or meeting which can quickly lead to inflated legal invoices.
Multiple Attorney Calls and Multi-Staffed Meetings
One major staffing issue is when more than one timekeeper bills for the same telephonic call or meeting without client pre-approval. Nearly half of the potential staffing issues analyzed by LD involved Multiple Attorney Calls (more than one timekeeper bills for same call without client pre-approval) or Multi-Staffed Meetings (meeting or conference attended by more than one timekeeper without prior approval).
Skills Mismatch
Another area of inefficiency is when a timekeeper is flagged for working on activities below their level of experience. Having an experienced timekeeper working on a task that can be completed by less experienced staff prevents the experienced timekeeper from focusing on more complex tasks. The more experienced timekeeper could possibly complete a less complex task, like drafting a motion, in less time but the cost could be much higher for the work while keeping the experienced timekeeper’s attention away from other pressing tasks.
Having an inexperienced timekeeper perform tasks above level of experience can also cause inefficiency. A junior associate developing a case assessment or managing mediation activities would not have the insight to efficiently and effectively perform these activities. Furthermore, work performed by underqualified attorneys could be subject to corrective action down the line.
Associate Training
Associate training is when junior attorneys bill for activities where primary involvement by junior timekeeper pertains to professional development and internal law firm training purposes. In other words, the inefficiency with junior staff getting on-the-job training could result in higher costs.
Staffing for Efficiency and Effectiveness
Getting the right staffing level has a multitude of factors: Is the estate/client solely focused on costs? Is the right staffing mix leaning towards senior-experienced attorneys who will be tasked to help with lower-level tasks? Is work dispersed among a team of lawyers where there is little knowledge sharing or management workflow? These are some questions fee examiners, estates, and other interested parties should assess through billing data analysis as bankruptcy cases (or any other case) goes on.
Seeing the Full Picture
Analyzing invoice data can help see the full picture of the work that has been performed. Are you getting the value for what is being billed? Is your firm delivering quality services or is there potential for large fee write-offs from the fee examiner? Using Legal Decoder’s technology can help monitor fees and help guide firms with future billing activities so fee write-offs can be minimal.
Outside of bankruptcies, LD’s technology can assist with different types of engagements where technology is required to accurately analyze large amounts of invoice data in a compressed time period.
Monitoring outside counsel
Analyze and set pricing
Fee write-off prevention
Fraud Detection
Alternative Fee Arrangements
For more information on Legal Decoder solutions please contact info@legaldecoder.com