Big Law Life

#42: Value-Based Billing Strategies for Law Firms with Justin Ergler

Oct 16, 2024

In this discussion, Justin Ergler, a leading expert in legal operations and procurement, dives into the evolution of billing practices in law. He highlights the shift from billable hours to value-based billing, stressing the importance of strong lawyer-client relationships. Justin shares insights on navigating rate increases, advocating for tailored communication strategies. He also discusses the establishment of the Legal Value Network, aimed at improving collaboration between legal and business professionals, fostering innovation and efficiency in the industry.

37:18

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Episode guests

Justin Ergler

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Episode notes

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Quick takeaways

Value-based billing models are transforming law firm operations by prioritizing client relationships and incentivizing quality service over time spent.

Effective communication about fee changes is essential, requiring personalized approaches that emphasize the value delivered and client understanding.

Deep dives

The Need for Business Acumen in Legal Services

Success in the legal industry now requires more than just exceptional legal skills; it demands a solid understanding of business practices and financial metrics. As legal operations and business professionals increasingly influence the sector, law firms must adopt innovative approaches to service delivery. The shift towards treating legal services as a complex business operation necessitates that attorneys and in-house teams adjust their expectations and strategies. This evolution is essential not only for maintaining competitiveness but also for meeting the financial pressures faced by clients.

Intro

4min

Transforming Legal Billing: From Hours to Value

13min

Navigating Rate Increases in Legal Services

16min

Building Community in Legal Value Management

2min

Networking and Resources for Legal Professionals

2min

In today’s episode, I am joined by Justin Ergler, a globally recognized thought leader in legal operations and legal procurement. We discuss the evolving role of business professionals in the legal industry and how value-based billing models are reshaping the traditional law firm structure.

With a global legal industry valued at $1 trillion, Justin shares his insights on alternative fee arrangements, the importance of building strong client-firm relationships, and how legal departments and law firms can optimize value while maintaining profitability. The episode offers practical advice for lawyers navigating the intersection of law and business, providing specific strategies to improve client service and communication. At a Glance:

00:00 – Introduction and Justin Ergler’s Background
00:02 – The Evolving Role of Business Professionals in Legal Operations
00:05 – The Billable Hour: Exploring Alternatives and Addressing Concerns
00:10 – Case Studies: How Alternative Fee Arrangements Work in High-Stakes Matters
00:14 – Trust and Transparency: Building Strong Client-Firm Relationships
00:17 – Communicating Rate Increases: The Importance of Tailored Approaches
00:22 – Understanding Client Needs: Business-Side Conversations with Law Firms
00:28 – The Legal Value Network: Elevating Business Practices in Law
00:36 – Closing Thoughts and How to Learn More About Legal Value Network

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How to reach Justin Ergler:

justin.ergler@gmail.com

https://www.legalvaluenetwork.com

https://www.legalvaluenetwork.com/the-board

https://www.linkedin.com/in/justinergler

Interested in doing 1-2-1 coaching with Laura Terrell? Or learning more about her work coaching and consulting? - here are ways to reach out to her:

www.lauraterrell.com

laura@lauraterrell.com

LinkedIn: https://www.linkedin.com/in/lauralterrell/

Instagram: https://www.instagram.com/lauraterrellcoaching/

Show notes: https://www.lauraterrell.com/podcast