Winning Alternatives to the Billable Hour Strategies that Work

by Robertson, Mark A.; Calloway, James

• ISBN13: 9781604421286
• ISBN10: 1604421282
• Edition: 3rd
• Format: Package
• Copyright: 2008-12-16
• Publisher: American Bar Association

Summary

Your entire practice is based on doing battle for your clients. Unfortunately, the issues that arise when it comes to assessing the value of these protective and beneficial services are a source of contention for both yourself and your clients.

Table of Contents

About the Authors	p. vii
Acknowledgments	p. ix
Introduction	p. xi
The Search for the Meaning of Value	p. 1
Lawyers and Clients: Perception Is Reality	p. 1
Client Perceptions of Value	p. 2
What Is Value?	p. 3
Conclusion	p. 5
Ethical Rules and Practices	p. 7
The Basic Rule	p. 7
The Golden Rule	p. 9
Gray Areas	p. 10
Prepaid Fees in Lawyer's Trust Account	p. 10
Fee Agreements in Writing	p. 11
Mandatory Arbitration	p. 11
Business Interests Received in Payment	p. 12
Conflicts	p. 13
Fee Sharing	p. 13
Pricing Legal Services	p. 15
Historical Influences on Pricing Legal Services	p. 15
Pricing Before and After Bates	p. 16
Constraints on the Marketplace	p. 17
The Modern Focus on Value	p. 17
The Value Curve	p. 19
Interpreting the Curve	p. 21
Applications of the Curve	p. 21
Implications of the Curve	p. 23
Using the Value Curve	p. 25
The Value Curve for Main Street Lawyers	p. 26
Commodity Work	p. 26
Brand Name	p. 28
Experiential and Unique	p. 29
Major Issues Regarding Billing Methods	p. 30
Using Your Current Practice to Plan and Build a Billing Method	p. 33
Self-Assessment Checklist	p. 33
Objectives and Goals	p. 34
Present and Future Market Trends	p. 34
Current Billing Methods	p. 35
Willingness to Try Innovative Billing	p. 35
Determining Cost	p. 36
Retrospective Analysis of Cost as a Guide	p. 36
Cost of Service Versus Value to the Client	p. 37
Knowing Costs Through Accounting	p. 38
Costs	p. 39
A Simple Exercise in Cost Accounting	p. 40
Determining Cost to Produce a Package of Services	p. 41
Task-Based Analysis	p. 42
Examining Closed Files to Create Minisystems and Predict Fees	p. 43
Recurring Variables or Uncertainties	p. 44
Examining Profitability as It Relates to Billing	p. 45
Factors for the Main Street Lawyer	p. 47
Building Billing Methods for Main Street Lawyers	p. 47
Dealing with Unsophisticated Clients	p. 47
The Pricing Structure Can Form the Basis of the Office System	p. 50
I Cannot Do It at That Rate and Make Any Money	p. 52
Conclusion	p. 52
Technology and Alternative Billing	p. 55
Technology and Client Value	p. 56
Technology and the Billing and Collection Process	p. 58
Recording the Charges, Whether Time-Based or Task-Based	p. 59
Integrating Other Expenses and Payments Within the Statement and Firm's Records	p. 61
Preparing a Statement for the Client	p. 62
Transmitting the Statement to the Client	p. 62
Receiving from the Client Either Payment or Requests for Clarification or Information	p. 63
Instituting Collection Efforts for Balances Not Timely Paid	p. 63
Technology in Fee-Setting and Budgets	p. 65
Substantive Systems and Document Assembly	p. 66
Knowledge Management Tools	p. 67
Transaction Fees: Sharing the Costs (and Benefits) of Technology	p. 68
Collaborative Technologies	p. 69
Conclusion	p. 70
Developing the Case Plan or Transaction Plan	p. 71
Why Should I Bother with a Plan?	p. 71
Elements of the Case/Transaction Plan	p. 73
Preparing in Advance	p. 74
Setting Client Goals and Expectations	p. 75
Determining Billing Methods	p. 76
Implementing Value-Based Billing	p. 77
Value Billing and Profitability	p. 78
Strategies for Profitable Value Billing	p. 79
Seek a Higher Dollar Realization	p. 79
Raise the Value of Your Service	p. 79
Improve Quality	p. 80
Reduce the Cost per Unit of Service	p. 80
Use Technology	p. 81
Position on the Value Curve	p. 81
Clients' Perception of Value	p. 82
Guarantees	p. 83
Change: How to Bring It About	p. 84
Case Study: Could This Happen in Your Office?	p. 85
Arguments in Favor of Changing Billing Methods	p. 86
General Arguments	p. 86
Impediments to Change	p. 88
Concerns of Corporate Counsel	p. 89
Conclusion	p. 90
Evaluating Results of the Use of Alternative Billing Methods	p. 91
Review of Closed Files	p. 91
Client Audits	p. 93
Performance Evaluation	p. 94
Profitability Analysis	p. 94
Quality of Life and Quality of Work Product	p. 94
Conclusion	p. 96
Appendix	p. 97
Fixed Fee Corporate Representation	p. 107
Alternative Billing in Estate Planning	p. 111
Fixed Annual Fee for Small Businesses	p. 113
Virtual Law Office	p. 117
Fixed Fee Loan Documents Makeover	p. 121
Flat Fee Transactional Practice	p. 125
Moving to Value Pricing	p. 129
Letter Giving Alternative Fee Options to Client	p. 131
Formal Fee Agreement (Hourly or Contingent)	p. 135
Increased Hourly Rate for Negotiations; Contingent Fee if Litigation Is Required	p. 145
Alternative Billing Proposal for Either Hourly Rates or Reduced Hourly Rates with a Contingency Fee if the Business Is Acquired	p. 149
Agreement for Fixed Fee Representation of a Bank for Major Collection Litigation with Bonus Clause	p. 155
Fixed Fee Corporation Representation Service Election Form	p. 161
Fixed Fee Retainer Agreement for Handling Insurance Defense Cases Based on a Prescribed Volume of Cases	p. 163
Fee Agreement Incorporating Hourly, Fixed and Unit Fees for a Real Estate Development Project	p. 167
Index	p. 175
About the CD	p. 187
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