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Lawyer or Laborer? Value Billing Helps Lawyers Convey the Worth, Not Just the Cost, of Their Services

By Edward Poll
May 28, 2008

Until well into the post-World War II era, legal fees were based not only on the time spent, but also on the nature of the service, the result achieved, and the amount at stake. Charging an appropriate legal fee was a matter of professional judgment. That changed in the mid-1960s when clients began demanding detailed billing statements, and lawyers used time records as a tool to provide them. Today, most lawyers are paid by the hour ' and both lawyers and clients take little satisfaction in the system.

For lawyers, hourly billing is a source of frustration and discontent. Often, when I coach attorneys who are dissatisfied in their practice, it's soon apparent that their real dissatisfaction is with measuring their days in six- or 10-minute increments and losing focus on the essence of their skills. The hourly billing concept makes them equivalent to a day laborer, sending out bills that are features lists: This is what I did, this is the time I worked, and this is what you owe me. That approach also breeds dissatisfaction among clients, because it doesn't address the benefits of what a lawyer does. All clients know is that the longer lawyers take, the more they make ' and they believe this dynamic is at odds with the client's best interest.

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