Four Key Aspects of Implementation
After assessing the options, the next step is to implement your value-based approach, assigning
the various pieces of work to the right firms and vendors, under the right fee structures—all with a
mechanism to monitor progress.
There are four key items to focus on in terms of implementation: 1) terms, 2) tracking, 3) frequency
of updates, and 4) provisions for changed assumptions. Each is addressed in more detail below.
What are the terms?
■ Pricing. Is it all value-based fee structures or a hybrid approach retaining some
hourly rate billing? (See flow chart on selecting the right value-based fee terms).
■ Payment. How should payment be phased for value-based fee structures? Is it
equally apportioned across a certain number of periods, or does payment flow
depending upon the completion of the underlying projects or the achievement of
■ Outcomes. What happens to the outcome-driven portion (e.g., set aside by the client
for future payment or paid upfront but credited back by the law firm if necessary)?
Both parties must pay close attention to this point since a common problem for some
firms has been either: (1) professional concerns about setting arrangements that
could raise ethical problems (see, e.g., ABA Model Rule of Professional Conduct 1.5