#billablehour

In my experience, very few law firms in Australia have any consideration to this issue:

"Billable rates often pose a greater challenge than conflicts for lateral partners… …Envision a partner explaining a rate increase to a major client due to a switch to a larger firm; this could likely result in client loss"

"An 8 a.m.-to-6 p.m. workday would decrease profit margins by 15% to 20% at top firms"

If this is really true, then they have the wrong pricing structure!

If you are wondering what types of Alternative Fees Arrangements (AFAs) in-house General Counsel are asking their private practice suppliers to provide them with – or, to flip the coin, what AFAs private practice lawyers are charging their in-house GCs, then wonder no longer. The latest market report from the Association of Corporate Counsel (ACC) sets this out in a nice clear table: Some…

I have read a lot recently about how AI and ChatGPT in particular is going to kill the billable hour. That may well end up happening. What I do suspect though is that it is unlikely to happen soon. And if the billable hour is to be killed off, technology – such as AI and ChatGPT – may well play a part, but it will be the cultural/behavioural change that’s needed that will be the final nail in…

The answer to this question, as reported on the Above The Law website, is surprising high:

"According to Law360 Pulse 2023 Lawyer Satisfaction Survey, what percentage of respondents overall said they were satisfied or very satisfied with their firm’s billable hour requirements?"

Leaving aside the whole issue of whether or nor the billable hour is the best way to charge clients, do you think it is fair to charge different client different rates for the same work? This article by Jordan Rothman on abovethelaw.com would suggest the answer to that question is – ‘yes’. And I actually don’t disagree with Jordan’s outcome, but do disagree with his thinking of why. After all,…

Quote of the Week (21.10.2022)

Indeed, most law departments rate their legal spend management sophistication as middle of the road, which means that most law departments continue to rely on general billing guidelines and discounts as their primary cost-control measures. 2022 Legal Department Operations Index – by Legal Value Network and Thomson Reuters