I spoke with Dr. Jim Hassett, the founder of LegalBizDev, which helps law firms increase client satisfaction and profitability by improving project management and business development. Dr. Hassett is the author of 11 books, including his most recent: Legal Project Management, Pricing, and Alternative Fee Arrangements (Amazon Digital Services, Inc., 2013).
He highlighted that large and mid-sized law firms are dealing with three key pricing concerns:
- How to price high enough to make an acceptable profit, but low enough to get the work [aka Suicide Pricing].
- When are alternative fees the best arrangement for the client and the firm?
- How to manage the profit once the work commences.
Dr. Hassett suggested that although robust legal project management is helping professionals address these concerns, few firms are making meaningful progress. “There is a gap between what people are saying for PR and what is really going on,” he advises, predicting a drop in overall pricing, a rise in alternative fees, and improved project management.
His advice for lawyers interested in gaining a competitive advantage in a changing marketplace:
- Don’t over-analyze; just do it.
- Take chances and be more like an entrepreneur.
Listen to our interview below: