The final tank represents collections. Under the old assumptions, the tanks and the pipes have leaks. However, this tank already has a leak in it. Some lawyers don't feel compelled to bill at their expected return on time. A loss of 10 percent here reduced distributable income by 10 percent.
Clients balk on paying the full bill.
A loss of 10 percent here reduces the return on resources to 72 percent. Realization on potential revenues carries no overhead load. These tanks may be graphically represented in bar charts for the firm, an office, a portfolio of clients or projects and a working lawyer. When a firm sees everything as an investment decision and not a cost or profit center decision, expert systems such as the one the client wanted would be a great investment. WCCI Inc. Cobb Consulting based in Houston.