Corporate legal departments and clients are being pressured to reduce legal costs and work within specific budgets. Clients are pushing this mandate down to their outside lawyers in the form of required budgets and requests for alternative pricing. Baker Donelson has invested substantially in the evaluation of industry-specific pricing structures which incorporate risk sharing and incentives and promotes predictability and transparency. We believe the models we have developed provide a unique pricing approach and offer both the client and the law firm protections from historic problems with the billable hour.
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- Client: Baker Donelson's Labor and Employment Practice Group.
- Problem: Attorneys and clients are reluctant to attempt alternative pricing models due to unfamiliarity and the time required to evaluate and develop a comprehensive model that balances the risks between the law firm and the client.
- Solution: Baker Donelson's LPMO initiated innovative pricing strategy meetings with the Labor and Employment Practice Group designed to pair practice group subject matter experts with an in-house counsel representative to investigate alternative pricing solutions. The teams met for two days to evaluate the life cycle of typical L&E matters, historical spend, jurisdictional practices and pricing options. The meetings resulted in alternative pricing models in the form of phased fixed fees. Additionally, the teams produced supporting resources such as budgets (with tasks and recommended resource allocations), model agreements to be presented to clients and identification of checklists to increase efficiency in handling these matters.