SOME OF THE DELETERIOUS EFFECTS OF TIME BASED BILLING

 

Time-based billing is not only detrimental to clients and our relationships with them, but in my view has led to a whole range of negative consequences for our profession that are too numerous to mention, but include:

• Demotivating highly-intelligent ‘knowledge workers’ by making them slavishly

account and record every six minutes of their working day.

• Lawyers being treated merely as ‘fee earners’ and primarily assessed more

on their hours recorded than anything else.

• Too many smart people leaving our profession, often citing the time-based

billing model as a primary cause of their dissatisfaction.

• The fostering of a production mentality in firms (“slowest horse wins the race”)

with little or no incentive to improve turnaround time.

• Stifling of creativity or any incentive within firms to innovate.

• Somewhere between seven and 15 per cent of a firm’s turnover is spent

purely on administering a time-based billing model, which adds no value to

clients.

• Cost and communication disputes with our clients.

• Significant lock up being considered the norm and just another cost of the

business of running a law firm

PricingJohn Chisholm