Survey: ‘Seven in ten law firms say they lack confidence in negotiating fees [with clients]’

Interesting quote in a post on the Legal Futures website by Nick Hilborne ‘Law firms “lack confidence in negotiating fees”‘:

Seven in ten law firms say they lack confidence in negotiating fees while 40% “do not know with any certainty” what proportion of their client relationships are profitable, a study has found.

And while I found that interesting (if not a little depressing), this quote made me laugh out loud:

Researchers also found that ‘more training in value pricing’, rather than hourly rates or fixed fees, was the most popular option for increasing profitability.

But unsurprisingly, given the winds of downturn we are all now feeling:

Fixed fees (39%) were more popular than hourly rates (35%)

Anyhow, interesting post that I thought I would share. Can I recommend you go take a look.

As usual, comments are my own.


Are ‘support staff’ impacting on your law firm’s profits?

Interesting comment by the BigHand team on a post by them (Lack of Urgency in Firms’ Support Structures Risks Profitability) on the website this week:

Lawyers don’t want to spend time figuring out how to get work to a competent, properly skilled support team member. Firms want lawyers to prioritize billable hours and profit. This is an expensive and untenable stand-off.

For what it is worth, my experience here in Australia is that lawyers are more than happy to embrace working with Allied Professionals (my preferred term for ‘support staff’ and one I see Greg Lambert uses on The Geek In Review Podcast so it cannot be all that bad) and that most lawyers now work collaboratively with all parts of the law firm to maximise the profit of the business (while adhering to the firm’s values and social contribution).

To that end, my experience has been that most lawyers know very well who is in their support team or, at minimum, know who the quarter-back is who they can chuck the ball to (Legal Project Management 1-0-1 anyone??).

In short, it is not a one man game any longer (if it ever was), it’s a team sport and views like the one expressed by BigHand above are outdated. But, as always, these are just my views.


Photo credit to krakenimages on unsplash

#ICYMI – Weekly Digest 320

In case you missed it (#ICYMI) Issue 320 of my Weekly Digest of all things going on in #legal #strategy #pricing #vbp #CRM #clients #customers #innovation was sent to subscribers earlier today. Check it out here – and if you like it, subscribe.