4. Can we analyze the structure and cost of a portfolio of similar cases? Is there a large
enough number of cases, with sufficiently similarity and predictability year-over-year
so as to bundle them?
5. If the foregoing approaches are not feasible, can we analyze the hourly cost of law
labor and later adjusted it in light of outcomes produced or success achieved?
Can we measure this objectively via results and/or subjectively via client evaluation?
(See FMC Technologies ACES approach for an illustration based on hourly, along
with sample templates.)
6. How much would it cost for the company to hire internal talent to handle this matter
or line of matters, versus “going outside” to retain services?
Defining Value in Terms of Cost to Produce, Plus Reasonable
1. Where outcomes and comparables are hard to assess, does it makes sense to define
value in terms of the law firm’s “cost to produce,” plus a reasonable profit margin?
2. Some clients report success having gone down this path, after having asked familiar
firms to “unpack” the hourly rates charged to show components of overhead, cost
labor and profit.
Case Studies & ACC Resources
What Do Hours Have to Do With Value?
ACC Docket, October 2009. (A framework for defining value in the context of legal services.)
How to Conduct an Early and Periodic Case Assessment
The bottom line is this: The client should outline a preliminary definition of
measurable value with respect to the legal matter(s) at hand, and then refine it by discussing
objectives and desired results with outside counsel. Clients can and often do ask a law firm
or vendor being considered for the work to develop proposals backed by internal research on
specific metrics that the client has identified as the markters of success. A tool to get started:
use the attached Value/Scoping Checklist in the Appendix.