Hourly Billing Breeds Complacency

In most any case and on most any matter current live in your office, there are things that need to be done which aren’t being handled. You know it and I know it. One of the most difficult transitions when I started this firm was learning to be proactive at level that the hourly billing method simply did not encourage. Under the hourly billing model a lawyer is usually piled up with work so high that they spend almost all of their day putting out fires. In a value-billing model, the lawyer has more time to think strategically and figure out how to deliver the goods.

The most valuable thing you could ever provide to your client is good strategic thought. When was the last time you sat down and fully documented what the next steps were in your matter. If your client called today, could you tell them exactly how you are going to win their case or achieve the value you’ve defined for them on the front-end?

Comments

[Jeff Donner]

Right on. My goal from now on is to handle every matter on a fixed fee basis--every one, no exceptions. If I'm going to do any time-based billing, it will be in "weekly" as opposed to six-minute increments.