I had lunch recently with a lawyer friend who works at a bill by the hour law firm. When the issue of hourly billing came up, we both agreed that it is difficult for clients to feel that they receive a good value for the legal work. Win or lose the case, and more often than not, clients dread the final bill because they have been frustrated with the legal bills all along. Shocking, but unfortunately not surprisingly, my colleague's law firm relies on a revenue model that they know does not deliver true value for their clients' legal spend.
When the issue of alternative fee arrangements came up, my colleague agreed that what clients really want is to pay less for the same legal services. Thus, if firms adopt alternative fee arrangements, they will make less money. This is why many firms are reluctant to adopt alternative fee arrangements. However, why would clients allow any vendor--especially a professional services vendor--to charge more than the value the vendor delivered? It makes no sense, yet this is the norm far more often than it should be.
If your bill by the hour attorney has not asked you if you believe their law firm provides a good return on your legal spend, raise the issue with your attorney. It's time to have a candid conversation on hourly fees and the return on your legal spend, and clients ought to push this issue with their law firms. Your attorney's answer may surprise you, and you might find that it is time to look for an attorney that embraces alternative fee arrangements.
When the issue of alternative fee arrangements came up, my colleague agreed that what clients really want is to pay less for the same legal services. Thus, if firms adopt alternative fee arrangements, they will make less money. This is why many firms are reluctant to adopt alternative fee arrangements. However, why would clients allow any vendor--especially a professional services vendor--to charge more than the value the vendor delivered? It makes no sense, yet this is the norm far more often than it should be.
If your bill by the hour attorney has not asked you if you believe their law firm provides a good return on your legal spend, raise the issue with your attorney. It's time to have a candid conversation on hourly fees and the return on your legal spend, and clients ought to push this issue with their law firms. Your attorney's answer may surprise you, and you might find that it is time to look for an attorney that embraces alternative fee arrangements.
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