And So Should Lawyers (Treat Legal Fees The Same Way Executives Treat Business Issues)
Michael Maslanka, a lawyer from Texas, authored an article in Texas Lawyer that popped up on law.com today. The article advises GCs to treat legal fees the same way executives treat business issues. Beginning with the premise that increased associate salaries are akin to a rise in the company's raw materials, Maslanka writes:
Don't belabor the rise -- the cost of a company's raw materials goes up just like a firm's. Instead, GCs should treat legal fees just like the C-level execs down the hall treat business issues that cross their desks.
He then provides five helpful rules. Its certainly not an exhaustive list and it ignores the inherent conflict between a client's economic objectives and those of lawyers who bill hourly. But my point here is simply to offer one thought expanding on the article--those lawyers who fall behind their clients' thinking on pricing issues are destined to play catch-up for a long time. Perhaps to the point of trying to get a client back in the door once he or she has found joy elsewhere.
There is no bigger issue today than pricing. Every business is feeling the pinch in the worsening economy. You're either part of the problem or part of the solution. There is no middle ground.