surprise surprise some recent data has come to light that clients don't like time based pricing! Wow, gosh I didn't know that because I am constantly told by lawyers that "my" clients like being billed by time.

Now the dust has settled on the end of another financial year here in Australia with several firms having performed spectacularly well, others still reeling from being caught with their pants down in 2009, some long awaited salary increases for employees, an arithmetical increase in hourly rack rates, some new entrants in the marketplace and firm promotions having been proudly publicized (mainly employee promotions, a few non equity partner promotions, some lateral recruiting but no increase in overall equity numbers), what might lie ahead for the profession over the next few months?

With kind permission from my friend and colleague Ron Baker I include a link to his most recent article posted on the Verasage website.

http://www.verasage.com/index.php/community/comments/great_moderates_in_...

As usual from Ron it is a brilliant thought provoking article challenging us all. He quite succintly explains why, especially in the professions, most change happens evolutionary not revolutionary.

What if Google was a Law Firm?

If Larry Page and Sergie Brin had founded a law firm instead of a search engine do you think they would fill out timesheets, charge their customers by time, undertake legal work themselves and structure their business as a partnership?

I do not know them personally but somehow I just cannot envisage either of them doing any of the above.

Assuming for a moment there is a medium/ long term future for lawyers and law firms (and there is an increasing body of opinion out there that says there is not unless we significantly change some of our long held mindsets and outdated business practices)what might such firms in the future look like?

Who can predict what technological advances will be made even within the next few months let alone the next few years, so I wont even try to venture into that area and leave that to others much better qualified to comment about.

The Hon Wayne Martin, Chief Justice of Western Australia, gave a speech on Monday, 17 May 2010 to officially launch Law Week 2010.

His Honour’s address, titled ”Billable hours—past their use-by date?, reviewed many of the criticisms of time based billing  and urged all lawyers to take new approaches to charging for legal services.

OK you got me. I now understand that it is impossible to move lawyers away from charging their clients solely by reference to time so to save further wasted time and energy, I have summarized the reasons they have given me in a Top 10 List as follows: 

Most firms have client maintenance, client service, and client development programs for their major and most important clients. Most firms understand that the 80/20 Rule applies to them (80% of the revenue comes from 20% of the clients) although I am not sure how many firms understand the more critical 225/20 Rule (225% of the profit comes from 20% of the clients).

Ron Baker was true to his words last August when he said  " I will return" to continue hammering nails into the billable hour coffin.

Given Ron's sessions and presentations last August were "sellouts" Ron returns to Australia for a couple of weeks from 17 February.

Ron is the Key Note Speaker at the 3rd Annual Managing Partners Conference being held at Sanctuary Cove 19-20 Feb  speaking on Firm Of The Future  www.chillimarketing.com.au/file_download/133 

I am old enough to remember when consulting firms came to us lawyers in the 1970’s and said “...we want to show you an Alternative Fee Arrangement from the US that will revolutionise the way business is done in law firms. It is easy and efficient to apply, involves no risk, will make you much more money, allows you to manage your staff properly, and is totally transparent. Best of all you will no longer have to have awkward conversations up front with your clients about price, as price is totally flexible and can move up( and up )solely at your will.