Posted by: Daniel Raphael on Friday, 23 March 2012
Last week, we shared some tips on how to manage law firm expenses in an uncertain economy. In this post, we drill down into one of the costliest expenses. Within PRP’s Legal Resources Practice Group, the number one question law firm partners and administrators alike ask is, “Are we paying fair market value for our basic online research service and our other legal resources?”
The short answer: Your contract is unique and needs to be examined individually. Determining whether your firm is paying fair market value for legal resources takes more than simply comparing a single dollar amount. Cost, usage patterns, redundancies, viable alternatives, practice group sizes and other variables all contribute to the equation.
However, law firm decision-makers can help reduce firmwide database costs. Here are some simple steps you can take to help ensure your organization is making the most of your database subscriptions. (more…)
Posted by: Kris Martin on Wednesday, 14 March 2012
At a recent family event, Uncle John — a successful stock trader — told us, “Sell everything! The sky is falling!” Citing the evolving Eurozone crisis, escalating gas prices domestically and continued bloodshed in Syria, he postured that we were about to be taken on another ride.
For the past few years, pundits have been debating our economic recovery. On paper, the recession is over. Yet with fractional growth numbers reported quarterly and social crises looming in every corner of the global, most of us fear, “What’s next?”
The legal industry has been especially hard-hit by the global financial crisis since 2007. (more…)
Posted by: Don on Friday, 2 March 2012
Nine weeks ago, I committed to a new year’s resolution to get in physical shape. I’ve made this resolution before, but this year, I’m compelled to make it happen so I spend a lot of time thinking about why I failed before and how I will be successful this time.
You probably can identify with my goal because no resolution is more prevalent than the desire to trim down and shape up. Also, if you’re like me, you probably have to balance a workload and schedule often at odds with your goal. I try to combine activities, such as walking while contemplating a vexing work issue.
While walking this past weekend, it occurred to me that my formula for getting and staying in shape is no different from PRP’s formula for expenses reduction and management. I drew a comparison between personal physical fitness and company fiscal fitness. For both, you have to look internal to identify the benefits of getting in shape as well as the barriers to achieving your goals.
Posted by: Don on Monday, 23 January 2012
CFOs and other business executives routinely measure many returns: investment, reputation and objective. These metrics give them a snapshot of business health. But how many of them measure the factors that contribute to an unhealthy business? The “cost of doing nothing” is another return you can measure to index the price of operating at the status quo this year. Financial executives who do probably will find that inertia robs their organizations silently. (more…)
Posted by: Don on Thursday, 19 January 2012
Last week, Deloitte jumpstarted a debate on whether companies need a “cost czar,” an executive appointed to oversee cost improvement activities across the entire enterprise. Cost reduction is a strident business theme in 2012. In its recent survey of 139 FORTUNE 1000 companies, Deloitte found that 80 percent are continuing to pursue cost improvements and 17 percent have established a cost czar to lead cost-improvement activities.
Does your company need a cost czar? On its website, Deloitte outlined the pros and cons of cost czars for you to consider. These are valid points, especially the admonishment that a cost czar isn’t a silver bullet.
But we think something is missing from the discussion. (more…)
Posted by: Cara on Thursday, 29 December 2011
You know that doing the same thing, the same way, year after year, can spell doom in this economy. Stagnant companies simply cannot compete; the true profit-makers are those boldly innovative companies that continually seek new ways to re-invent themselves. These organizations gain competitive advantage through the introspective review of their indirect administrative and other back-office operational expenses.
PRP works with and examines some of the most innovative profit-making clients in America. From them, we’ve learned that leading companies with enviable P/E ratios share some important characteristics. The true profit-makers: (more…)
Posted by: admin on Tuesday, 13 December 2011
Our mission in this blog is to create a community of professionals dedicated to creating healthier organizations by reducing indirect administrative and other “back office” operational expenses. In these posts, we will look at the concept of EBITDA — or Earnings before Interest, Taxes, Depreciation and Amortization — and how expense reduction can deftly improve EBITDA. We will share best practices you can implement immediately, case studies about how PRP has helped clients, scenarios you might consider to determine if your company could benefit from working with the EBITDA Coach and more. Most importantly, we want to hear from you and answer questions you have about improving your bottom line through spend management, supplier management and procurement strategies. Please take a moment now to leave a reply in the comments section below. You’ll help shape content for this blog and could have a questioned answered that boosts your performance.