The quarterly publication of the International Legal Technology Association
Issue link: https://epubs.iltanet.org/i/271291
PEER TO PEER: THE QUARTERLY MAGA ZINE OF ILTA 72 reasonable budget assumptions. That establishes a framework for upfront pricing. We all need to be flexible and use standards of good faith and fairness in seeing that when there's been a material change to the budget assumptions we have an agreement to re-approach and change that fixed or capped fee. The relationship between a firm and its clients should always be win-win. My final point is that the billing and pricing function in a firm is typically only as sophisticated as their most sophisticated client. I urge law firms to take a look and see that there truly are simple pricing models. Coming full circle back to processes playing a part in client satisfaction, if firms view their work in the form of a process, they can map out the most likely-to-occur scenario, create good baseline estimates and establish Vincent: As Stuart mentioned, be responsive with true testimonies and examples for proper pricing and how you would manage matters. Then execute on what you committed to — show the client you have the ability to deliver. And third is to report on everything properly. You can demonstrate traction on the matter and track and audit to see where you can improve. Reporting also helps you continue to build on your assumption lists so have more knowledge before pricing future work. Chris: I'm going for the low-hanging fruit. The first thing firms can do is price services — whether estimating an hourly fee or creating a baseline for alternative fee arrangements — with enough details that the in-house counsel knows precisely what they're paying for. Second, bill in a timely manner — and correctly. And third, be sophisticated — more sophisticated than your competitors — by proposing good alternative fee arrangements that incent efficiencies. For example, I have reviewed alternative fee arrangements intended to provide bonuses to lawyers and possible discounts for us, but they're not incenting a firm to help spend less. ASK THE EXPERT Chris Sweet Chris Sweet is the Vice President of Outside Counsel & Engagement Management at JPMorgan Chase & Co. He focuses on managing alternative fee arrangements for significant matters. Prior to joining JPMorgan, Chris was a legal project manager at GlaxoSmithKline and more recently at Reed Smith. Chris is an attorney and a trained and experienced Six Sigma black belt and project manager. Contact him at christopher.g.sweet@jpmchase.com. Don't be shy about asking for feedback about what else we can do, what works well and how we can improve. LD CORPORATE LAW DEPARTMENT MEMBER