When an industry undergoes profound change, successful companies are forced to choose between preserving the status quo and charting a new course that sacrifices near-term stability for a chance at a long-term edge in a transformed market.
We are at this point in the legal industry.
In an article for Bloomberg Law, Chair of Broadfield Holdings, Peter J. Sacripanti, discusses how technology is reshaping the way legal services are valued. At current, 90% of legal work in the US is billed by the hour. However, new technologies are reducing the time required for many legal tasks, making hours worked an increasingly weak proxy for the value of the services delivered.
"The billable hour doesn’t have to be the default. I believe it can be eliminated entirely. Pricing for each matter should be defined through a collaborative process with clients, which leverages technology to reach a fair value for the services. The business model changes, but the mindset shouldn’t. We win when they win."
Peter J. Sacripanti
Chair of Broadfield Holdings
Read the full article here.
