Flowchart: Client Focus on Outcomes & Comparable Costs in Defining Value
The chart below helps in answering two fundamental questions as a precursor to selecting
the right value-based fee structure.
■ Can success in this matter be defined by a measurable outcome, such that it
makes sense to correlate outside counsel’s compensation, in part, on
achieving that outcome?
■ What data points are available to assess the comparable costs of producing
similar quality work in this matter?
Having addressed these issues, the legal department has laid a foundation for selecting the right
value-based fee terms. The next flow chart helps in selecting the best terms.