Managing Legal
THE POINT
Reports about pricing “compromises” between law firms and client companies in the wake of Covid-19 simply reflect attorneys’ intransigence about hourly billing — not a real willingness to remove that business model’s waste and cost uncertainties by agreeing in advance the value they promise to deliver for a predictable dollar amount.
DISCUSSION
An example:
The American Lawyer / Law.com, January 4, 2021 (paywall): “Constrained by Crisis, Law Firms and Clients Are Learning to Compromise on Pricing“:
“The pandemic and its economic fallout have driven legal departments to turn to their law firms for help. With a toolbox of old and new ideas at their disposal, firms are showing that they’re willing to listen ….
“The circumstances are giving rise to conversations about pricing and driving both sides of the law firm-client relationship to seek common ground ….”
But “common ground” between lawyer and client is precisely what the hourly billing model makes impossible. Pricing risk remains Continue reading