Summary
Expect to learn that velocity, measured by the time it takes to complete a project from start to finish, is a crucial factor in assessing efficiency, client experience, and potential profitability, with benchmarks including initial contact, file opening, project completion, final payment, and file closure.
3 Key Takeaways from this Video
- Efficiency and client experience: The concept of velocity emphasizes the importance of completing projects quickly, as it indicates greater efficiency and reduces the need for relearning, ultimately resulting in a better client experience.
- Profitability and efficiency: Higher velocity is often associated with increased profitability, as faster project completion allows for more efficient resource allocation and minimizes administrative time spent between the last payment and file closure.
- Benchmarking milestones: Tracking velocity involves benchmarking specific milestones in the project timeline, such as the first contact, file opening, project completion, final payment, and file closure, providing valuable insights into the overall efficiency and effectiveness of file management processes.
Transcript
0:07 The concept of velocity is an expression or a data point that is considered sometimes by some firms in assessing how a file went.
0:21 And what you look at is how long does it take to get from start to finish with the underlying premise that the quicker you are to get a project done likely the more efficient you are because the less relearning you have to do and probably the better experience for the client.
0:41 So the greater the velocity, the better it is and likely the more profitable it is. And so there's lots of different points in the timeline that you might benchmark.
0:51 As an example, you likely would start with when's the first contact made. When do I start having those conversations about a potential? Project you might then look at when does the file get opened and we actually are engaged and we're moving forward.
1:08 We then may look at when does the file actually finish, when's the project completed when did it close, and in a lot of transactional work it is easy to ascertain that date.
1:19 Then you might also look at when is the final bill paid like when's the cash collected we started expanding resources when we made our first contact.
1:29 We started spending our time. And then lastly when does the file get closed as important as well because there's a administrative time being spent between the date of the last payment and the date the file gets closed.
1:43 So all of that is something that you can track through the velocity of the file.