Among the many ways that corporate managers of outside counsel decide which lawyer to retain, the in-person interview is probably the most effective (See my post of Nov. 24, 2007: coaches on how to interview; Feb. 8, 2006: a good question to ask; Jan. 1, 2006: behavioral interviews; Jan. 16,…
A survey crossed my desk that asked general counsel to rate the importance to them, when they decide to hire a law firm, of 19 factors. Yes, 19. The last one on the list is “Ethical infrastructure (e.g., ethics committees).” I have worked with hundreds of law departments and not…
This is a depressing and admittedly cynical view, but let me float the idea. Law firm partners spend much of their time thinking how to increase their revenue. Certainly, they practice law and care about those who pay their bills, but close behind they care about how to milk more…
When an in-house lawyer needs to retain a law firm, the simplifying assumption outsiders make is that many firms of equivalent ability are available to vie for the privilege. Something close to a perfect market exists: many willing buyers transact with many willing sellers and economists are charmed. Down on…
Richard A. Hall founded and is President/CEO of LexTech, Inc., a legal information consulting company. According to a post April 3, 2008 on Faikah’s Blog, Hall developed a task-based billing model built on extensive statistical analysis of hundreds of litigated civil matters. This would have been a precursor of the…
An anecdote by a general counsel in the ACC Docket, Vol. 26, April 2008 at 101, left a burr under my saddle. Barry Nagler, the General Counsel of Hasbro, endorsed client referrals as one of a law firm’s most effective marketing tools. Then the article adds: “Having a law firm’s…
For this post, keep in mind your primary law firm. If its average standard rate is $400 per hour with a gross margin of 35 percent, the firm makes a profit of $140 each hour. The 10-percent discount ($40 per hour) you request reduces that profit by nearly 30 percent.…
You might easily obtain from one of your primary law firms a discount on its standard hourly rates of, let us say, five percent. You could pat yourself on the back. A few months later, the firm might raise its billing rates by, let’s say, an average of eight percent.…
Lexakos recently released the results of its Chief Legal Officer 2008 Strategic Planning Survey of more than 100 chief legal officers. According to the press release by Rick Wolf, Lexakos’ founder, “only 21% trust outside counsel to manage costs and choose the best alternatives for document review.” A bit more…
For some matters that are very sophisticated, give some thought to a radical alternative for your billing arrangement. Agree with the partner whose work you want most on the matter to pay that partner a reasonably significant premium on his or her standard rate for time worked on the matter.…