Why value pricing is the new billable hour
For professional services firms, value billing can deliver higher margins and more satisfied clients. But how do firms make the transition?
John Chisholm is a third-generation lawyer. In a career spanning 37 years, including 18 as a partner and five as chief executive, he has witnessed firsthand the innovations that have reshaped his industry – from the rise of legal process outsourcing to the advent of international mega-firms such as K&L Gates, which absorbed his former practice, Middletons, in 2013.
Yet amid all this change, one aspect of legal practice remains unchanged from his grandfather’s day: time-based billing, driven by the humble time sheet.
It isn’t only lawyers who continue to bill in the same way as in the 1950s. Many accountants, engineers, IT consultants and other professionals still charge by the hour, even if their time sheets are now on screen, rather than on paper.
So, why has time-based billing persisted in the professions for so long? And perhaps more importantly, could you create higher margins and more satisfied clients by doing things differently? [Read more…] about InTheBlack | Why value pricing is the new billable hour