Because service is what we deliver, but it's how customers experience it that counts
I just finished reading Mary Juetten’s post in Above the Law, Time Is The New Black. I was struck by this statement:
“Also, all should reject the value billing theory that recording time is unnecessary.”
Since there are few statements with which I would disagree more, I decided to parse the article and respond…
I just read an article in Law360 discussing Microsoft’s commitment to shift 90% of its work to alternative fee arrangements. Michael Rynowecer of BTI Consulting is quoted as saying the move is “one of the most aggressive” adoptions of AFAs he knew of. “Ninety percent is on the leading edge. It’s an enormous step; it’s…
Really? I just received an invitation to a seminar that stresses that the average attorney bills 6 minutes per day less than they did two years ago. Six minutes a day! According to this invitation, that costs firms more than “$12,000 in lost billings per lawyer per year. If you have 200 associates, that’s $2.4…
When I have the opportunity to speak, I ask participants and co-presenters about their experiences with alternative fees. Better than half the time, I am told “my clients don’t want alternative fees.” I always ask whether the firm has developed different work methods or whether the work methods are the same for both hourly and…
When lost in the desert or a thick forest terrains devoid of landmarks people tend to walk in circles. Blindfolded people show the same tendency; lacking external reference points, they curve around in loops as tight as 66 feet (20 meters) in diameter, all the while believing they are walking in straight lines.
This…
Something interesting happened recently. Jeff Carr, Nicole Auerbach and I consulted with a client about how to improve the law department’s performance and save money. Shortly afterwards, Nicole and I consulted with a law firm about moving to alternative fee arrangements. The interesting thing was that we found ourselves enjoying being consultants. We found,…
Just read this:
MoFo, which submitted its first monthly fee statement earlier this week, is serving as special renewable energy counsel to the official committee of unsecured creditors. The firm is seeking $641,212 in compensation for work between April 29 and May 31.
MoFo’s attorneys billed more than 683 hours during that time period and
…
Last week, BTI Consulting reported that alternative fee arrangements have “soared to an all time high,” noting that AFAs generated savings of nearly 14%, or an average of $2.7 million for law departments. These savings are significant, but as I have often said, much greater savings are possible if AFAs are deployed with other important…
Michael Rynowecer of BTI Consulting had a great, must-read post today on his Mad Clientist blog. In the post, which I strongly recommend, Michael makes these points:
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Great article by Sara Randazzo in today’s Wall Street Journal, Legal Fees Cross New Mark: $1,500 an Hour. Set aside the wisdom of such rates when firms provide discounts on demand and realization rates average near 80%. What stands out for me is the utter hubris of this statement by John Altorelli, previously of…