There has been discussion over the past months as to whether the better term for non-hourly billing is "alternative fee arrangements" or "value-based billing." The answer is yes, and yes.
The first "yes" is an...
Following my post on Alternative Fee Agreements for law firms and their clients I had one of those days where I wished I had never heard of the phrase. I was sitting in the middle of a flat fee project. Had I priced by the billable hour, I would be rich...
This post was written by LegalBizDev
Principals Mike Egnatchik , Tom
Kane , and Jim Hassett .
At the beginning of a new matter,
lawyers often specify its scope and fees in an engagement letter. The
engagement letter is designed to clarify exactly...
Many lawyers are reluctant to discuss money with clients upfront. I know
when I practiced, it was a topic I would shy away from as much as possible.
But, in this day and age, that is less of an option. Clients are more
demanding regarding what they...
By Eric E. Bensen & Rebecca K. Myers
There is probably no other part of the litigation process where the cold hard reality of hindsight has less in common with the lofty expectations of planning than the much demanded, but universally dreaded litigation...
By Eric E. Bensen & Rebecca K. Myers
A detailed budget, one that accounts for the number and nature of anticipated motions, scope of discovery to be taken by each side, including depositions, length of trial, etc., provides an opportunity for In...
Another well-intentioned and
innovative reform to a law firm's partner compensation system has been aborted.
The senior management team at one of
the United Kingdom's better-managed law firms, Addleshaw Goddard , has
been forced, by what...
According to the "Firms in Transition Survey
2011" reported on Law360 on Tuesday "unproductive and underproductive
partners" (read non-rainmakers) will be cut by 20% of the law firm responding
to the Altman Weil (no follow) survey...
Last month, the Canadian magazine Lexpert ran
an article about legal project management that began by describing two partners
McKelvey who participated in our Certified Legal Project Manager TM program .
The article went on to discuss...
The always interesting 3 Geeks blog
had a post the other morning about the procurement function in legal in general
and reverse auctions in particular .
The bigger question is this: Should
clients buy legal services based on cost? 1
When I give speeches, I usually
include a slide that defines legal project management. But until
recently, I had not been satisfied with my own slide. Legal project
management is an emerging area, and no one can be sure what it will look like
This guest post was written by Richard
Rosenblatt , a partner in Morgan Lewis's Labor and Employment Practice. It is
an edited version of an essay he wrote as a participant in our Certified Legal Project Manager TM program .
When we represent...
As we approach the end of September,
firms with fiscal years ending in December should already be taking the first
steps in their year-end fee collection campaign.
Your firm's billing team will
probably do most of the heavy work, but in well...
When I interviewed chairmen, senior
partners, and C-level executives from AmLaw 100 firms (in the LegalBizDev
Survey of Alternative Fees ), nine types of AFAs were reported most
Fee caps : In
a fee cap, hourly rates are charged up to...
I was pleased to read the post on 3 geeks about
value billing as this is definitely a topic that needs exploring
further, not least because I'm astonished by the number of law firm partners
who continually tell me that it's for clients to find...
In a telephone conference earlier
today with a client talking about legal project management and alternative fee
arrangements, I was struck by a statement by one of the partners on the call.
Although he recognized clearly that AFAs, especially fixed...
Some law firms are going to large companies and offering to
do all their legal work for one fixed price, but the firms don't know how it
will work out in the long run. I suspect in some cases it will come out
This prediction was...
A few weeks ago, when I gave a
speech at the retreat of a 1,000 lawyer firm, a senior partner asked: "In
your experience, how do large firms determine costs?" I replied:
"Mostly, they don't. Until recently, most firms were making...
Internal controls are important to prevent error and ensure integrity of accounting records as well as to reduce the risk of misappropriation of assets (fraud). A good system of internal controls protects both the firm and its employees. Designing such...
Most law firm managers understand intuitively that the value of inventory (both WIP and A/R) degrades over time, but by how much and how quickly? The ability to understand and answer these two questions is the first step in preparing a realistic...
As law firms grow in size, and expand geographically and across practice areas, the use of firm-wide profitability tools has become a business necessity. But understanding the urgency to adopt or update a profitability model doesn't guarantee its...
The tide appears to have turned in favor of alternative billing solutions. Amid the continued economic tumult, firms are responding as never before to client demands for more creative pricing. As these arrangements play out, however, some firms are likely...
All businesses that accumulate material amounts of accounts receivable ("A/R") rely on metrics that measure the turnover of those receivable balances as a gauge of risk and liquidity. One of the most common metrics used is what...
Most law firm managers understand the importance that business analysis plays in steering a firm toward success. However, as with so many things in life, a little bit of analysis can be a dangerous thing.
Management reporting processes typically collect...
Good billing practices can help you get paid for the work you've done and improve your client relationships in the process
One common experience for small and mid-sized law firms is the growing amount of receivables. Usually, there are two reasons...