Alternative Billing Session at #ILTA09

VMaryAbraham: At the Alternative Billing Session: Tom Gaines, Jeff Brandt, Jeff Rovner & Eugene ("call me Jeff") Stein. #ilta09

• backofthenapkin: Use tech for profit: still use hourly recording but bill on fix fee. Must chg how associate success is measured. #ilta09

• VMaryAbraham: Brandt: "Technology is rarely the sole cure for any business problem." #ilta09

• VMaryAbraham: Rovner: There are knock-on changes. We used to measure worth by # of billable hours. Now we value results. #ilta09

• VMaryAbraham: Stein: They develop more specialized associates to provided targeted work for clients, rather than jack-of-all-trade associates. #ilta09

• VMaryAbraham: Stein: They changed their staffing model. More paralegals w/ more responsibility. Partners operate like project managers. #ilta09

• VMaryAbraham: Stein: His firm was paid ONLY upon closing = incentive to finish quickly. #ilta09

• VMaryAbraham: Stein: Once they offered a fixed fee, they got more work from the client than was planned. (Work taken from other firms.) #ilta09

• VMaryAbraham: Stein: Once you have a fixed fee arrangement, the firm assumes risk of cost overruns. In exchange, the firm shld ask 4 more work. #ilta09

• VMaryAbraham: Stein: The key is to understand exactly how the work is accomplished, & what discrete pieces R commodities that can B done cheaply. #ilta09

• VMaryAbraham: Stein: Lower fees 2 clients are offset by lower costs of production, so firm retains profitability. #ilta09

• VMaryAbraham: Stein: Ways to reduce client costs = alt billing + lower the firm's cost of production. #ilta09

• bren924: In addition to lost profits on reduced rates, clients are refusing to pay certain disbursements, further reducing prof/partner #ilta09

• VMaryAbraham: Stein: In addition to the discount in rates, there is also a cut in the disbursements clients are willing to pay for. #ilta09

• mikemac29: Speakers talking about subject that hits home as new Lit Supp Mgr, way we've always done things may not be good enough anymore. #ilta09

• VMaryAbraham: Remember: There were flat fees 25 years ago. But clients demanded hourly rates then. Now they want fixed fees. #ilta09

• VMaryAbraham: Gaines: This isn't necessarily the death of the billable hour. We just need to offer alternatives. #ilta09

• mikemac29: Panel sees area of growth for techs with business savvy and leadership skills, right now leadership is in short supply #ilta09

• bren924: Food for thought in the alternative fee discussion? http://bit.ly/3jXFLg (expand) (via @brucecarton) #ilta09

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Comments

[Legal Dodo]

Although the billable hour does not seem to be dead as yet, its days are definitely numbered. Clients are increasingly demanding reduced legal costs, forcing the law firms to innovate. One solution to the high legal fees problem is legal outsourcing.

With the advent of legal process outsourcing, legal work is now being done at a fraction of the cost in countries like India, without compromising in quality. Legal outsourcing providers are helping buyers of legal services in the U.S. reduce costs dramatically by providing cost effective legal solutions.