Cost Management is taking the time to understand the full implications of costs and expenses. By drilling down into who is doing what and who is charging for what, firms can get a much more complete understanding of the financial picture and make better decisions to improve profitability.
For example, many firms miss the opportunity to fully understand all of their overnight, messenger, car service and similar expenses due to invalid client/matter numbers. This lack of data, however, impacts the way the firm views its attorneys, matters, practice areas and clients.
Some clients pay for a higher percentage of costs and expenses. The ones that don't may not be as truly as profitable it seems. If "you can't manage what you don't measure," building a data warehouse with this information and then mining that data is a requirement for good management. After all, a dollar saved is a dollar earned.