Summary
Expect to learn how building efficient systems and shifting work allocation leads to increased billing realization rates and profitability in alternative fee arrangements.
3 Key Takeaways from this Video
- Efficient work through great systems: Building efficient systems in alternative fee arrangements enables work to be done more effectively, focusing on output rather than time spent.
- Shifting resource allocation: Implementing great systems leads to a redistribution of tasks, with paralegals taking on a larger portion of the work while lawyers focus on critical thinking and ensuring nothing is overlooked.
- Increased profitability: Moving away from hourly billing and embracing system-driven approaches results in higher billing realization rates and greater profitability for each project.
Transcript
0:07 When you build great systems, which AltFee is about as a pricing system and encourages great systems so that you get work done efficiently because you don't get paid more money by spending more time.
0:23 You're creating great systems and if you have great systems, the allocation of resources tends to shift so that the paralegals as an example end up doing way more of the work.
0:35 They rely on the system, they create the 90% answer and the lawyer comes in to do 10% of the work, which is the lawyering, to do the thinking to make sure that things haven't been forgotten.
0:48 So, you know, moving away to a system which is not billing by the hour encourages you to create systems within your firm, precedents if you will, templates for getting projects.
1:01 Which ends up resulting in a shifting of the work, to paralegals doing more of the work, lawyers doing less of the work, and which ultimately results in dramatically increased billing realization rates, which is a way of looking at the time cost, if you will, to get a project done versus how much you actually bill for that.
1:23 So, that each project becomes a more profitable project.