Planning for 2025
As 2024 crosses the halfway mark, firms will begin planning for 2025 and that undoubtedly calls for a hard look at the operational side of the firm. Billing rates are expected to increase to cover rising costs and the business leaders of the firm must ensure margins continue to keep the firm in a competitive position. Following are five strategic areas that should be addressed.
Offsite Records
The decline of paper records has only made the offsite storage business more competitive and at times, ruthless. The fees continue to grow, in cost and breadth, and the ability to get out of contracts is increasingly difficult. While the concept of offsite storage seems easy, scratch the surface and you see how complicated the pricing and contract terms can be. Permanent withdrawal, if allowed, only adds to the complexity of costs and even then, storage costs may continue. A well negotiated contract that aligns with the firm’s business objectives is the only way to protect the firm from rising and unexpected fees and changes in terms.
Administrative Outsourcing
How can your firm take a strategic view of administrative support in the face of accelerating change like AI? Is your firm ready to address the upcoming changes in reduced staffing? 63% of firms are planning to reshape their administrative support in the next 2 years1, but there is no guarantee it will be successful. Building data of who is performing what work, where, and how much it is costing your firm is the first step. From there, benchmarking your data against market rates and comparing in-house and outsourced models. Admin tasks performed by a third party may allow the firm to capitalize on skill sets and expertise - and disperse tasks in the most efficient way. Either way, in house or outsourced, administrative support will look very different in 5 years. Are you ready?
Office Contracts
Real estate is in flux as firms try to tighten guidelines for hybrid work. Minimizing the real estate footprint has been an important initiative over the last 5 years, but the office contracts that also support hybrid/in office work need to be flexible to support these changes. Significant savings can be achieved by negotiating Office supplies and Output (i.e., printer and MFDs) contracts designed to allow for changes in the workplace.
Cost Recovery
Does your current cost recovery strategy reflect the way your firm works since Covid – hybrid environment, onsite copy and print volumes half of what they used to be, outsourced administrative functions, client pushback increasing, AI, etc.? Didn’t think so. Now is a great time to examine your recovery strategy and determine the appropriate direction for your firm. To request Mattern’s article – “Cost Recovery – Post Covid” click here.
Data Management
2024 is on target to see the highest number of data breaches in history2. Cyber criminals continue to innovate and no firm wants to be caught in the cross hairs. Every firm says protecting client data is paramount, but is there a plan, is it followed, and is it defensible? A firmwide strategy for addressing paper and electronic records is critical – and clients are demanding this security. An Information Governance policy, complete with retention schedules, must be developed and even more importantly, the change management necessary to carry out these guidelines.
Firms don’t have the bandwidth to address these areas in a way that brings the most value and the security of knowing their rates and terms are aligned with the market. Rob Mattern President of consulting firm, Mattern, says, “What Mattern brings to your firm is what your law firm brings to your clients – expertise. We bring a depth of experience and market knowledge based on 25 years of being immersed in this market. The analysis using our one-of-a-kind benchmarked data, knowledge of supporting technology, and skill in managing and negotiating contracts protects your firm - and that is our #1 goal.”
For more information on how Mattern’s team of consultants can help your firm prepare for 2025, visit www.matternassoc.com for a library of white papers and webinars on improving law firm operations or email at info@matternassoc.com.
