Flowchart: Client Focus on Outcomes & Comparable Costs in
The chart below helps in answering two fundamental questions as a precursor to selecting the
right value-based fee structure.
;First, 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?
;Second, what data points are available to assess the comparable costs of producing
similar quality work in this matter?
Do we have a quantifiable definition
of success based on outcome?
Having addressed these issues, there is a foundation in place for selecting the right value-based fee terms (via the
next flow chart).