Winning Alternatives to the Billable Hour : Strategies That Work

by Calloway, James A.

• ISBN13: 9781590311172
• ISBN10: 1590311175
• Edition: 2nd
• Format: Paperback
• Copyright: 2002-08-01
• Publisher: Natl Book Network

Summary

This practical book details the economic and client service advantages of alternative law firm billing methods, the various billing methods currently available and how to select and implement the right alernative billing method for law firms of all sizes.

Table of Contents

Foreword by the President of the ABA	vii
Preamble	ix
Acknowledgments	xi
Introduction	xiii
Chapter 1: The Search for the Meaning of Value	1	(6)
Lawyers and Clients: Perception Is Reality	1	(1)
Client Perceptions of Value	2	(1)
What Is Value?	3	(2)
Conclusion	5	(2)
Chapter 2: The Changing Legal Profession	7	(16)
Technology Within the Law Office	8	(1)
Clients' Understandings and Beliefs About Technology	9	(2)
Consumer Attitudes in General	11	(1)
The Only Constant Is Change	12	(1)
Demographics	13	(1)
Profit Squeeze and Income Compression	14	(1)
The Legal Market as a Maturing Marketplace	15	(5)
The Future of the Profession	20	(1)
Impact of These Trends	21	(2)
Chapter 3: Ethical Rules and Practices	23	(8)
The Basic Rule	23	(2)
The Golden Rule	25	(1)
Gray Areas	26	(5)
Chapter 4: Pricing Legal Services	31	(24)
Historical Influences on Pricing Legal Services	31	(6)
The Value Curve	37	(13)
Hourly Billing Is Cost-Driven	50	(1)
Variations of Hourly Rates	51	(4)
Chapter 5: Pricing Legal Services for the Solo and Small-Firm Lawyer	55	(12)
The Value Curve	56	(5)
Market Factors for the Main Street Lawyer	61	(1)
Dealing with Unsophisticated Clients	61	(3)
Pricing Structure as the Basis of an Office System	64	(1)
I Cannot Do It at That Rate and Make Any Money	65	(1)
Conclusion	66	(1)
Chapter 6: Foundations on Which to Build a Billing Method	67	(18)
Self Assessment Checklist	67	(3)
Determining Cost	70	(1)
Retrospective Analysis of Cost as a Guide	70	(1)
Cost of Service Versus Value to the Client	71	(1)
Knowing Costs Through Detailed Cost Accounting	72	(3)
Exercise in Cost Accounting	75	(2)
Determining Cost to Produce a Package of Services	77	(1)
Task-Based Analysis	78	(2)
Examining Closed Files to Create Minisystems or Predict Fees	80	(1)
Recurring Variables or Uncertainties	81	(1)
Examining Profitability as It Relates to Billing	82	(1)
Conclusion	83	(2)
Chapter 7: Billing as Part of the Communication Process	85	(20)
The Role of Effective Communication in the Billing Process	85	(2)
Elements of the Communication Process	87	(4)
Know What You Want to Communicate	91	(4)
A Model for Delivery of Legal Services	95	(4)
Satisfaction and Price	99	(2)
How to Prepare and Price Your Service Package	101	(2)
A Few More Words on Communicating Value	103	(1)
Conclusion	103	(2)
Chapter 8: Technology and Billing	105	(14)
Technology and the Billing and Collection Process	105	(7)
Technology in Fee-Setting and Budgets	112	(1)
Substantive Systems and Document Assembly	113	(2)
Knowledge Management Tools	115	(1)
Transaction Fees: Sharing the Costs (and Benefits) of Technology	116	(1)
Collaborative Technologies	116	(1)
Conclusion	117	(2)
Chapter 9: Developing the Case Plan or Transaction Plan	119	(6)
Why Should I Bother with a Plan?	119	(2)
Elements of the Case/Transaction Plan	121	(1)
Preparing in Advance	122	(1)
Setting Client Goals and Expectations	122	(2)
Determining Billing Methods	124	(1)
Chapter 10: Alternative Methods of Billing	125	(22)
Fixed or Flat Fee	125	(2)
Contingent Fee	127	(1)
Hourly Rate	128	(2)
Blended Hourly Rate	130	(2)
Fixed or Flat Fee Plus Hourly Rate	132	(1)
Hourly Rate Plus a Contingency	133	(2)
Percentage Fee	135	(1)
Task-Based Fee	136	(1)
Retrospective Fee Based Upon Value	137	(2)
Unit Fee	139	(1)
Relative Value Method	140	(1)
Lodestar Method	141	(1)
Statutory or Other Scheduled Fee System	142	(1)
Availability-Only Retainer	143	(2)
Retainer as a Deposit Against Future Services	145	(2)
Chapter 11: Implementing Value-Based Billing	147	(18)
Value Billing and Profitability	148	(1)
Strategies for Profitable Value Billing	149	(2)
Position on the Value Curve	151	(2)
Change: How to Bring It About	153	(2)
Case Study: Could This Happen in Your Office?	155	(1)
Arguments in Favor of Changing Billing Methods	156	(5)
Impediments to Change	161	(1)
Concerns of Corporate Counsel	162	(2)
Conclusion	164	(1)
Chapter 12: Legal Representation Agreements	165	(4)
Matters to Address in All Legal Representation Agreements	165	(3)
Caveat	168	(1)
Chapter 13: Evaluating Results of the Use of Alternative Billing Methods	169	(6)
Review of Closed Files	169	(1)
Client Audits	170	(2)
Performance Evaluation	172	(1)
Profitability Analysis	172	(1)
Quality of Life and Quality of Work Product	172	(2)
Conclusion	174	(1)
Appendix: Fee Letters, Agreements, and Other Resources	175	(100)
Index	275	(10)
About the Editors	285	(2)
About the Diskette	287