For nearly a century, the billable hour has been the backbone of law firm economics. However, according to industry experts, that model is increasingly at odds with the needs of today’s in-house legal departments, which are under pressure to cut costs and demonstrate value.
At a recent Corporate Legal Operations Consortium webinar, Scott Rosenberg, managing director and general counsel of Unbiased Consulting, and David Rueff, chief client solutions group officer at Baker Donelson, made the case for a shift to what they call “effective fee arrangements.” The pair agreed that the transitioning away from hourly billing isn’t just possible—it’s necessary. But for that change to happen, in-house teams must take the lead.