If You Can't Tell Your Client What It's Going to Cost, She'll Hire Someone Who Can
Imagine you need to hire a courier service for your law firm. A business associate gives you a name, and you call the courier in for a meeting. He tells you he is the best courier in the business. You ask how much to deliver a package across town. This is where is gets weird. He says he can't tell you. It's too unpredictable. He could get caught in traffic. The recipient office could be closed, and he may have to go back twice. He might have other jobs that day. But, he says, if you agree in advance to pay him whatever it ends up costing, he'll send you an invoice after he does the job. You, of course, are outraged. Does he not know his business? Does he not know his overhead so he can calculate a fair price? You throw him out of your office and call someone else.
When clients hire you, why should their expectations be any different? Why can't they get a handshake and a price up front, before they hire you? Without a doubt, managing complex litigation requires hard work and exceptional management skills. Those of us who are hired to handle such cases must manage our case team, our client, our witnesses, our judge, our opponent, the avalanche of documents, and ultimately the jury. Historically, we had the luxury of not having to worry too much about the fees and expenses. After all, this was a huge case for our client, and they knew lawyers were expensive. They wanted to win, whatever the cost.
Those days are gone. No client who wants to stay in business in this era of global competition will give you a blank check and send you to war. Our well-managed clients know that lawyers are no different than anyone else from whom they buy services – whether they be plumbers, paper suppliers, or couriers. Just as when they hire any other supplier to provide goods or services, our clients are entitled to a price from us up front. It is our job to then manage the case in a way that gives them superior legal representation at the price we accepted when we looked them in the eye and shook hands.
“But litigation is too unpredictable!” you say. “I don’t cheat my clients and I don’t have time to spare. Every hour I bill to that file is legitimate,” you contend. “Our firm can’t operate without tracking billable hours,’ you argue. Objections noted. Overruled. Clients want predictability, accountability and reasonableness in their legal bills. Give them a firm price and firm handshake, or watch the work go to someone who will. Is it easy? Not by a long shot. Do you have a choice? Not at all. But don't take my word for it. Look into the Association of Corporate Counsel Value Challenge, and take a peek at how Burger King and AT&T are managing their legal costs.
It's not easy, but it can be done. I've been doing it for years. And that's what I blog about on this site. This blog is devoted to lawyers who, like me, have to manage and win high exposure, complex cases while keeping a vigilant eye on what the client is spending to get there. I look forward to sharing my experiences with you, and learning from you how you do it in your practice.
