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Capture, analyze and communicate retention results
• Quarterly reports
• Time between quarter close and publishing date
% of reports delivered within 3 weeks of quarter close
100% of reports delivered
Adopted from Kaplan and Norton Balanced Scorecard and Strategy Maps
Measurement Challenges
What is the right metric? What if the data does not exist? What if the data exists but is in “bad” shape? How long do I have to measure? Is it really my job to manage this data and the
reports?
Measuring What Counts Designing actionable metrics
Directly relevant to business goals and identifies the success of your inititatives
Provides insight to help improve your operation What should you do when the data doesn’t exist?
Use proxy data E-billing Mine law firm matter management/billing data Improve data quality Create data (Excel, Access or off the shelf)
Case study
Managing Your Litigation and Your Business with Metrics
Litigation planning and budgeting Law firm assessment and performance
scorecards Alternative fee arrangements Operational improvements Predictive modeling
Litigation Planning and Budgeting
Establishing Litigation Budgets
Law Firm Assessment and Performance Scorecards
Law Firm Assessment Surveys(@ end of case by claims handlers)
Assessments Must Be…
Litigated File Assessment SurveysOverall Experience Law Firm Interaction Quality of Outcome Handling Complex Cases
# Provider Prvd Type
Region State Total # of Surveys
Overall Satisfaction
Intend to Reuse
Respon-siveness
Compliance w/ Protocol
Appropriate Costs
Positive Impact
Budgeting Execution of Strategy
1 Law Firm A OC OC Western OR 1 10.0 10.0 10.0 8.0 10.0 10.0 8.0 10.02 Law Firm B OC OC Western CA 6 8.6 8.4 8.2 7.8 8.6 9.5 7.5 8.33 Law Firm C OC OC Western TX 1 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.04 Law Firm D OC OC Central LA 4 7.8 7.8 7.8 7.5 7.5 7.8 5 Law Firm E OC OC Central IA 1 7.9 7.9 7.9 7.6 8.6 8.1 8.0 8.06 Law Firm F OC OC Eastern NY 7 9.9 9.7 9.7 9.7 9.7 9.9 10.0 10.07 Law Firm G FL FL Northeast NY 49 9.0 9.1 9.0 8.8 8.9 9.0 9.3 9.58 Law Firm H OC OC Central LA 7 8.9 9.0 8.6 9.0 8.4 8.7 8.5 9.09 Law Firm I OC OC Eastern SC 1 10.0 9.0 8.0 8.0 9.0 9.0 9.0 8.0
10 Law Firm J OC OC Western NM 28 8.6 8.6 8.5 8.2 8.1 8.6 8.5 8.511 Law Firm K OC OC Eastern MD 8 7.8 7.6 7.8 7.5 7.5 7.6 7.5 8.012 Law Firm L OC OC Central MS 6 10.0 10.0 10.0 10.0 10.0 10.0 13 Law Firm M OC OC Western NA 1 6.0 4.0 7.0 6.0 4.0 6.0 4.0 6.0
Sample LFAC Survey QuestionsI am satisfied with the law firm's compliance with litigation management protocol.I am satisfied with the law firm's timely and appropriate budgeting .I am satisfied with the law firm's legal analysis and related claim handling support.I am satisfied with the law firm's execution of agreed-to strategy and action plan.I am satisfied with the law firm's performance of discovery and investigation .I consider the legal cost incurred to be appropriate for the resolution of the issues involved.I consider Counsel's impact on this case to have been positive.I would use this firm on a similar case in the future .
Sample Survey Questions
Viewing Data in Context
Are there external factors potentially affecting costs and outcomes? Legislative changesWide variations in case mix: very large cases, many small cases?Aggressiveness of plaintiffs’ attorneysCustomer demandsBrand reputational considerationsCustomer risk management philosophyClaims behaviorJudicial hellholesData integrity
Understanding your data is an iterative process; litigation data is complex and has many nuances – involve “real” users in data review. If possible, also include actuaries or statisticians
Sample Firm Performance ScorecardFounders Insurance Company Firm Scorecard – 3/24/2011
Productivity• Average Cost per Case• Average Duration of Cases• Average Case Values
Capacity• Firm Size• Number of Attorneys Billing Founders
Legal Skills• Case Problem Solving• Quality of Legal Advice• Quality of Legal Writings• Case Evaluation Skills• Creativity & Resourcefulness• Negotiation & Settlement Skills• Use of Dispositive Motions• Use of ADR• Subrogation Capabilities• Trial Skills• Appellate Skills• Overall Performance Relative to Staff Counsel• Overall Performance Relative to Peer Firms
Service Delivery• Responsiveness to Requests for Information from Claims• Candor in Communications• Case Preparedness• Proactive Case Management• Consistency of Performance Across Firm Attorneys
Compliance• Overall Adherence to Founders’ Litigation Management Guidelines• Use of e-Billing• Accuracy of Legal Bills• Accuracy of Case Budgets• Timeliness of Status Reports
Note: 5 – High Score; 1 Low Score
State Reporting Group Panel TypeNumber of Cases
Average Legal Cost
Median Legal Cost
Average Total Cost
Median Total Cost
Legal Cost / Total Cost
Average Cycle Time
Median Cycle Time Pct $0 Loss Cases
Pct Complex / Severe
File Assessment Score
Surveys Completed
IllinoisAgency Corporation Personal Lines Liberty Preferred 38 $9,297 $6,798 $34,486 $20,071 27% 508 401 13% 19%
All ComplexitiesCCO Report data lags by a minimum of 3 months
*Construction Defect Cases ExcludedAs of Date: August 31, 2012
Venue State
Two years of closed cases (3 month lag)
Bucket by Panel # of casesAverage and median fees, expenses and losses Spend to loss ratio
Segment by line of business Case Duration
% Zero Loss and % Complex
Stages of LitigationStages of Litigation Resolution TypeResolution Type
Alternative Fee Agreements
Alternative Fee Agreements Understand what both sides want to achieve and how the
success of the AFA will be measured. Outcomes Quality Service
Understand your costs, the customer’s service requirements and your profit targets.
Clearly document the AFA terms/conditions and strive for simplicity.
Invest in the appropriate resources to analyze, manage and enhance each AFA.
Operational Improvements
Operational Improvement
Six Sigma Initiatives re Turnaround
Time
Effective Negotiation
Training
Legal Background of
Audit Staff
Provide Customized
Legal Service Delivery
Utilization of Firms per
Jurisdiction
Tools to Streamline
Process
Predictive Modeling
What Is Predictive Modeling?
“Predictive Modeling is the application of statistical techniques and algorithms to individual risk data to better understand the behavior of a target variable based upon how multiple variables interact.”
Recent Articles Discussing The Use of Data Analytics and Predictive Modeling in The P&C
Insurance Claims Process
28
Insurance Analytics: The First Step for SuccessBy Robert Regis Hyle, PropertyCasualty360.comAugust 12, 2013
The Dawn of Big Data: How lawyers are mining the information mother lode for pricing, practice tips and predictionsBy Joe Dysart, ABA JournalMay 1, 2013
New Power with Predictive Analytics By Karen Furtado, PropertyCasualty360.comApril 17, 2013
Five Ways Agents, Carriers Can Partner Using Predictive AnalyticsBy Wade Bontrager, PropertyCasualty360.comFebruary 5, 2013
Analytics, cheaper technology help risk managers with strategic planningBy Rodd Zolkos, Business InsuranceJuly 28, 2013
Prevalence in P&C Industry Adoption predicted to increase in next two years.
Pricing and product innovation Underwriting/risk selection Claim handling
85 percent of personal lines carriers surveyed are or will use it
97 percent see sophisticated underwriting/risk selection tools as essential or very important
70 percent commercial lines adoption now/< 2 years Additional uses: rates and pricing