The Wall Street Journal published an article today on how alternative fee arrangements are accounting for a larger percentage of revenue at law firms. Unfortunately, the article requires a subscription to read.
Ed Poll, one of the leading voices on business development for lawyers offered his insight into the shortcomings of the WSJ article:
What Ms. Smith ignores, however, is the real impetus for alternative fees. It is technology. Because of advances in technology,some tasks such as document review that used to take hundreds of lawyers many hours can now be done in a fraction of the time with a fraction of the number of lawyers. Further, when lawyers charge by the hour and see their time reduced, and thus their revenue, there is an impetus to charge a fixed fee. The client gets certainty. The lawyer gets to keep a portion of the savings resulting from the technology. Both sides benefit.
I agree with Ed.