The majority of law firms use the “6-minute unit” to charge their clients to complete particular tasks. However the benefits to clients of using this system have since disappeared:
“With no gauge for intangibles such as productivity, creativity, knowledge or technological advancements, the billable hours model is a counterintuitive measure of value.”
The much-publicised criticisms of this existing model include:
- Rewarding inefficiency and dilatory practices (the more time they spend the more they are paid;
- Uncertainty and “bill-shock”; and
- Discouraging innovation and time-efficient solutions to clients’ needs.
The authority on the future of the future of the legal profession has said:
“No longer will the law be meted out occasionally on the basis of billing by the hour.