Cost Recovery Case Study
June 2005,
Unsexy and unheralded it may be but automated cost recovery is an essential part of practice management - and practice profitability. In this article, we talk to Ian Walker, IT Telecoms Project Support Manager at Simmons & Simmons, and discover how the Copitrak cost recovery solution delivers to the bottom line in more ways than one.
Q. What was the rationale for rolling out the Copitrak system?
While we had been using an automated system previously, it was only operating in the London office and solely covered copying and faxing. We were using fairly tortuous manual methods for tracking phone call charges and had nothing in place to cover printing, so we had inefficiencies compounding the losses. If we could roll out a more holistic solution worldwide, covering the core areas of copying, printing, telephony and faxing, we knew that the recovery rates would improve to such a degree that we could secure a rapid return on investment and a platform to optimise future profitability. That was proved correct with London, which paid for itself after just six weeks. This success has been replicated in ten of our nineteen offices around the world. (Madrid, Milan, Rome, Brussels, Paris, Frankfurt, Düsseldorf, Hong Kong, Shanghai and Tokyo.
Q. The cost recovery supplier market is a crowded one. Why did you select Copitrak?
There were two main reasons. Primarily it was the quality of the solution. There was a real depth and breath of functionality, it was flexible and user-friendly, and had particularly impressive reporting capabilities - key to our desire to manage our costs and our assets more proactively. Secondly, it was the quality of the people, not just here in the UK but across the globe and particularly in the Far East. We trialled the system in the Hong Kong office and the team there was instrumental in delivering an extensive, thorough and informative pilot project. In a lengthy procurement cycle, they were always professional, knowledgeable and patient and we established an excellent partnership with them. We knew that they a first-rate track record in the legal sector but ultimately it came down to "Do we want to work with these people?"
Q. Implementation and usability - the keys to a successful project?
Absolutely. We wanted to be up and running as quickly as possible, with users having a positive experience of the system and so helping us achieve a 100% ROI in as short a time as possible. As project manager of the European roll-out, I worked in harness with the Copitrak team and saw at first-hand their experience and expertise combining to deliver what was a huge undertaking to an agreed timeframe and to a very high technical and project management standard. Their skill at integration ensured we had no issues in drawing data from multiple sources and the sheer intuitiveness of the hardware and software prompted rapid take up by staff. Crib sheets and floorwalking took the place of formal training, no small consideration when you consider the billable hours saved.
Their whole approach was very client-oriented - we obviously had a lot of internal processes to factor into the system, we also had a fair few alterations we wanted to make, but they dealt with everything in a timely, cooperative manner. And that professionalism has been maintained throughout the relationship - their customer support is first-rate, prompt, efficient and helpful, and we feel that their overall approach has been instrumental to the success of the project.
Q. Have recovery rates improved since the implementation?
There have been significant improvements and we believe we can do more. Currently, we're recovering a very satisfactory percentage of costs across printing, telephony, copying and faxing, all with minimal manual intervention. The system allows us to track both landlines and, critically, mobiles, obviating a potential black hole of unknown and unaccounted for calls and charges. It also has the facility to track private and business use, which we are aware will radically simplify compliance with current VAT regulations. Another welcome bonus is the ability to get mobile call charges entered onto the Copitrak system within 48 hours rather than having to wait for the monthly bill to come in. We believe that we can further increase the recovery rates through an internal programme to improve accuracy of user input. The printing figures in particular have shown the true value of the Copitrak solution, as prior to its installation we had no clear idea of just how much activity was going on in the practice.
Q. Are you benefiting from your investment in other ways?
We are seeing what I'd call 'soft' benefits. The main advantage is that at last we have detailed management information on key contributors to our overheads. A good business needs to know as much about its costs as its income and we now have both micro and macro views on things such as charges, usage patterns, user activity, billable/non-billable ratios. We are also much better placed to manage our assets - for example, printing is invariably done, not on the most appropriate machine, but on the nearest machine. This does not always make for cost-effective printing or proper utilisation of the equipment, so now we can make sure that each job is done on the right kit for the right price. Finally, while it does not necessarily apply to us now, we could see cost recovery data helping us to more accurately estimate disbursement costs for fixed fee work, thereby eliminating or minimising any potential losses.
Q. Is this a solution that can grow as you grow and change with the times?
Again, one of the things that attracted us to Copitrak initially was their commitment to continual innovation and to being one step ahead of the market. We are currently considering the new ResearchTrak product that would allow us to charge for time spent on on-line legal research websites - a welcome way to mitigate some of the very hefty bills we are receiving from the service providers. We are aware of other developments such as biometric identification systems and while we may not be making use of then in the near future, we appreciate a supplier philosophy that will have an answer for us long before we ask the question!
Q. Is automated cost recovery core to practice profitability?
With the legal community's intense focus on billable hours and fees, it is easy to forget that disbursements in a large law firm effortlessly run into millions. It is absolutely pointless pouring money in at the top if you let it pour through a hole in the bottom so every firm should marry a comprehensive system to a strong recovery ethic amongst staff. The Copitrak solution has given us that system, encouraged that ethic and allowed us to maximise recovery across the globe.
