 By Audrey Rubin This column has spent some time discussing pros and cons of alternative fees. We’ve also aired some ideas about whether alternative fees are actually being adopted and, if so, by whom. (My most recent column is here.) A good deal of the published materials on alternative fees report that they are used by large corporations and large law firms, as suggested by this recent video segment by Chicago Business Today. This month, the Association of Corporate Counsel is hosting a master class on how general counsel can implement alternative fee structures. The ACC already developed and published a Value Challenge comprehensive program, advocating moving away from the billable hour. The master class highlights interesting yet somewhat troublesome dilemmas our legal industry faces: 1. The ACC and its highly respected faculty (disclosure: this author is one of the panelists) obviously feel that it is important to continue to push for alternative fees. It is wisely embarking on a formal program to assist its members in figuring out how to handle pricing other than the billable hour. 2. It is not easy to impose alternative fees on outside counsel. Nor is it easy for clients to assess whether those fees are fair, result in actual savings, and provide the same or better legal results. If switching our pricing mechanisms were an easy task, there wouldn’t continue to be the parade of articles on the issue. And there most certainly wouldn’t be a two day master class on best practices for implementing alternative fees directed at in-house counsel. Essentially, it is apparent that the use of the billable hour will continue to be restricted. But it is also apparent that law firms and their clients need tools to feel comfortable with the switch. In order to achieve better value pricing, as well as other desired objectives, lawyers should acquire project management skills. An insightful article by The Legal Intelligencer discusses Duane Morris' project management efforts. Some firms are reportedly implementing project management training already, as described in another Legal Intellegencer piece. A legal matter, regardless of size or type, is a project. We are not taught how to plan budgets, timelines, and staffing in law school - all of which are critical to valuable alternative fee plans. We are often uncertain as to how to collect and analyze the data that already exists on what alternative fees should be. Firms and their clients need to spend the time to get more educated on project management if they intend to achieve successful legal results at profitable yet equitable prices. About the author: Audrey Rubin is the president of Rubin Solutions, Ltd. Rubin Solutions specializes in implementing profitability improvement methods at firms. “We will – without a doubt – make you more profitable.” Page: 1 of 1 pages for this article
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