Pfizer’s general counsel, Amy Schulman, reviewed their move away from billable hours and why. Pfizer has legal alliances with 16 law firms, and the pharmaceutical company made a bold and move by doing away with billable hours and entirely shifting to a flat fees.

Ms. Schulman emphasized that entire legal service economic model is based on hours billed, needs to be shifted to support solutions oriented proactive thinking, that is at the heart of what corporations and she values.

“We’re creating conditions that will enhance their ability work together. They will be working together, rating each other, reaching out to each other, and rated on how responsive they are they when reached out to; rewarding good behavior, punishing bad.”

She goes on to say that people can talk about collaboration, but unless it’s measured, it’s just a concept.  Diverse teams that know how to have conflict can produce better results.  Her primary issue is that The legal industry has historically measured time in increments, and that measurement leads to how services are priced, then that leads to how we value legal service.

Schulman knows that the law firms are going to be making less money.  However, Pfizer will be offering them rewards that while not economic, will definitely add to value.

Hope you take a few minute to view the video and I looking forward to hearing your thoughts!

Please see this related article:

Law Firms Are Redesigning Their Billable Hours Business Platform

Tags: billable hours, Kara Smith, Karasma Media, Legal Marketing Trends