If there was one tradition that seemed unshakable in the legal world, it was billable hours. Whether a standalone lawyer in a small town or a major firm in New York City, lawyers charged by the hour for their services. That’s how it was for decades — but then, times changed.
The Great Recession struck. A new era of competition for legal services arrived and with it a greater client demand for transparency. Today, clients are asking professional services firms — especially in the legal realm — to provide more value and clarity in their engagements. This new, marketplace-driven structure means firms need to create different ways of billing for their services to keep clients happy.
The result? Alternative fee arrangements (AFAs) — pricing and fee agreements that go beyond the traditional hourly billing model. What’s more, lawyers are also requesting the change, according to reports including the Altman Weil Law Firms in Transition Survey. Savvy lawyers know that AFAs help them remain competitive and grow business.
But while the idea of AFAs appeals to both clients and lawyers, the reality of pricing matters accurately and profitably poses a challenge to many firms. Forward-looking firms are embracing a technology-based approach to meeting that challenge. By leveraging artificial intelligence (AI), firms can mine and analyze their existing data to derive accurate pricing strategies. The outcome is greater value to both clients and the business.
Download this ebook from Intapp, a leading provider of business applications for professional services firms, to learn how an AI enabled approach to pricing can help your firm:
• Price matters more accurately and profitably
• Scope and resource matters to ensure better margins
• Monitor engagements as they proceed and track budget to actuals
• Improve client relationships with more transparency, accountability, and success