Here are six effective factors to successfully implementing alternate fee arrangements (pricing) into your law firm.
An accurate mutual understanding of scope and project objectives between law firm team member and client is an integral step in successful alternative fee arrangements (AFA). This mutual understanding should include both what is within the scope of the project, and where appropriate, what is explicitly not within the scope of the project.
Great communication between law firm and client is essential – this starts with the initial scope conversation but must continue for the duration of the project.
3. RESOURCE ALLOCATION
Understand where various team members can most effectively get involved with a project in order to maximize efficiency and deliver the best product/service.
4. CONTINUOUS LEARNING
Just completing a project for a client is generally not enough, you must take time to reflect on the project and find ways to make your service better in the future.
Ensure firm-wide systems are in place so that projects can be accurately priced and the learnings that team members experience can easily and efficiently be incorporated into the firm’s systems moving forward, for the benefit of all team members.
6. AFA TYPE
Different AFA types work better in different circumstances – make sure you understand the different AFA options so you can determine the best option for the project on hand. AFA options are only limited by your imagination, but here are some more common examples put together by Bloomberg Law – https://pro.bloomberglaw.com/alternative-fee- arrangements-glossary/