Getting Away from the Hourly Rate (Part II): The Counterproductive Effects of Billing Time
Time-based billing results in a number of negative impacts on clients and law firms. Its persistence seems a result of inertia more than it does any other pressure. Because it rewards inefficiency more than it does efficiency, its basic effect may be the most undesirable quality that it possesses. Accordingly, clients and their outside counsel should embark on a search for an alternative that will benefit them both.
Value-related qualities (VRQs) of the service or of the provider can enable them to take steps that will yield greater alignment of their interests and greater value for the client.