|
Because a law practice is essentially a fee-for-service business,
most attorneys only get paid by generating billable time.
By generating more billable time, the attorney will be paid more.
This practice of generating billable time results in the attorney
having the most basic conflict with a client.
The cost of legal work will necessarily be high because the attorney
must produce the best possible work product regardless of the billable
hours it takes.Thus, while
the client is trying to get the best practical legal result for the
least possible cost, the attorney by his or her very nature will produce
the best possible work product with the largest number of billable
hours, and consequently, the highest cost.
Not only does the attorney want to produce the best possible
product, but such a product will result in the lawyer spending considerable
time on the matter at the highest possible cost.
With relatively few exceptions, most attorneys tend to be risk
averse and have relatively little business savvy or entrepreneurial
character. Consequently, there is
a natural tendency to over-lawyer most matters and to produce the
best possible work product, not the best possible work product for
the situation at hand. This structural
inefficiency, coupled with the general lack of business experience
of most attorneys, results in a contorted process whereby the attorney
has an incentive to spin his or her wheels to the detriment of the
client who is paying for the time of the attorney.
Added to this inefficiency is the tendency of most large firms to
specialize and over-lawyer every matter which comes into the firm.
The inefficient nature of law practice, the inherent conflict
created between the attorney and the client regarding cost, coupled with
the extremely cautious nature of most attorneys creates a billing
nightmare for most clients.
|