Peer to Peer Magazine

June 2010

The quarterly publication of the International Legal Technology Association

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Page 9 of 111

In step three, they make the necessary improvements. This approach enables a firm to assess an AFA-required competency as red and to then improve it and turn it green. Most firms will not require an all-green heat map. Instead, first determine your clients’ key requirements and then focus on those AFA competencies. The following heat map illustrates one firm’s assessment of the AFA competencies it required to meet the needs of a specific client. Deliver Meeting Client Expectations and Profitablity Goals Matter Onboarding Analyze AFA Strategy and Target Client Development Acceptable Margin Analysis Risk Acceptance Analysis Cost Analysis Develop Predictive Pricing/ Profitability Models Analyze and Develop Target Client List Firm-wide AFA Guideline Development Develop Strategy for Winning Profitable AFA Work Strategize Client-Specific AFA Development Client Analysis (relationships, budget, expectations, etc.) Client/Matter Risk Analysis Matter Planning for Known Matters Determine AFA Model (based on above and financial prerequisites) Determine AFA Management Approach and Costs Knowledge & Process Capability/ Readiness RFP Response Development Matter Planning for New Matters (budget, staffing, timing) Matter Inception Process (client communications and scope acceptance) Delivering Legal Services Leveraging Knowledge Base Achieving Client Results Determine and apply revenue recognition policies in line w/ AFA Managing Matter Scope and Budget Ongoing Monitor Matter Budgets (dashboards and reports) Analyze Ongoing Results and Risks Client Communications Provide Up-to- Date Financial Measurements Implement Matter Status Process Client Portfolio Review and Analysis (proactive review of matters/ risks on behalf of client) Measure Measuring Results Analyze profitability of total AFA arrangement to-date (and comparison to standard billing approach) Incorporate AFA pricing into published dashboards/reports Administer AFA Administration Dedicated AFA Administrator (billing, compliance w/ AFA analysis) Billing/E-Billing Determine and apply revenue recognition policies in line w/ AFA Client-Facing Financial Portal Client Matter Management System Interface Granular Matter Tagging Communicate total profitability to partnership/ management (separate from billable hour view) Analyze need for adjustments to AFA structure After Matter Review/ Refinement Mature, exisitng process capable of replication Process needs extensive development and/or improvement Process exisits but needs improvement/maturity Process not analyzed for maturity Peer to Peer the quarterly magazine of ILTA 11

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