Best Practice #4: Ensuring that Cost Controls do not Compromise Flexibility
Background: Clients often attempt to control costs by suggesting that law firms use only a specific number of attorneys on a given matter, e.g., one partner and one associate. This widespread practice can limit law firms’ ability to offer high-quality assignments to reduced-hours attorneys.
Best Practice: Connection law departments will avoid approaches to controlling costs that undercut law firms’ ability to offer flexibility without penalty. Connection law departments will be thoughtful about using head count as a cost control lever. Alternative ways to control costs include setting a budget, using blended average hourly rates, asking a law firm how it intends to staff a project, or setting personnel limits by FTEs (full-time equivalents) rather than the number of attorneys (head count).
