Show Me The Math

Chapter one: The benefits of cost estimates - Background - The increased popularity of cost estimates - What do clients look for in a cost estimate? - What don't clients want to see in a cost estimate? - How clients are empowered by cost estimates - The benefits of cost estimates to a law firm Chapter two: The mechanics of cost estimates - The continued utilization of the hourly rate billing model - Cost estimates based on task-based billing models - Utilizing dollar ranges in cost estimate proposals - Buyer beware - stay away from commercial (street) rates in cost estimates - Leveraging historical data and work - Highlighting cost savings and efficiency in a cost estimate - The importance of understanding variances and assumptions - Calculating the variance cushion - Leveraging law firm resources to develop cost estimates - Calculating the staffing utilization ratio - Challenging the traditional legal model - Monitoring staff utilization ratio in cost estimates - Measuring and monitoring work in progress (WIP) ratio - The impact of changing resources on a cost estimate - The benefits of using Alternative Fee Arrangements in a cost estimate - Third party vendor costs - How to treat disbursements in a cost estimate - The importance of a communication strategy - The criticality of properly defining and understanding scope - The importance of communication during the cost estimate process - Defining scope - The law firm's responsibility in defining scope - The unpredictability of "scope creep" and accounting for variances - Dealing with cost estimate overages - The blame game - dealing with law firm fault bias - Avoiding cost overages that impact a cost estimate - How law firms should communicate overages to clients - Dealing with multiple clients and instruction points on a cost estimate Chapter three: Operational challenges - Operationalizing a successful cost estimate strategy - Case study - US insurance company - Working through differences on a cost estimate - Educating lawyers on the business of law - Leveraging Legal Operation (Legal Ops) specialists - Why do in-house counsel fail at cost estimates? - Top ten list - what law firms dislike most about cost estimates - The resistance to utilize cost estimates - Beware of law firm caveats and disclaimers - Chapter four: Value and cost estimates - How does value factor into a cost estimate? - Measuring value using Value Indicators - Value Indicators - Law firm Value Indicator calculator - What happens in the absence of value? - Law firms need to stand their ground - clients are not always right - Unlocking the value of cost estimates - What type of insight or strategic advantage can cost estimate data give clients? - How clients track the success of a cost estimate - Tracking the success of cost estimates - How firms should leverage cost estimate data for the benefit of their clients - How can a firm win work on the basis of a cost estimate? - When are cost estimates a waste of time and not necessary? - Who cares about the math, show me the value! - Is there any room for an "instinctive approach" on a cost estimate? Chapter five: Other considerations - How third party pass through hourly rates impact a cost estimate - Treating cost estimates like a request for proposal (RFP) bid - The importance of trust in cost estimates - Challenging a law firm's cost estimate - How to get a firm to reduce its cost estimate - What to do when a cost estimate fails - Billing for a cost estimate - What is the future for cost estimates?