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Legal Billing Analysis Joseph Tiano Legal Billing Analysis Joseph Tiano

Rate Negotiations are a Red Herring

Corporate legal departments want to talk about rates.  They want to talk about standard rates and alternative rates.  Then comes the hourly rate discount discussion because a discount means better value. Rates are part of the fee for service equation (Rate x Time = Fee) but the far less important component when it comes to driving value.  rate negotiations are arguably just a red herring - a seemingly plausible, though ultimately irrelevant, diversionary tactic. The conversations should focus on the work itself.  More specifically, who should be doing it, and how long should it take. Time efficiency is the red flag issue. 

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