OGC’s Managing Partner On Why An Alternative Approach To The ‘Broken’ Billable Hour Is Needed

Corporations are consistently complaining concerning the excessive prices of the authorized companies they should make their companies run, and but every yr, authorized charges get increased and better. Shoppers grit their enamel, hand over the money, and the cycle begins anew. Will Biglaw ever chew the bullet on the billable hour to provide their company purchasers some reduction?

I not too long ago had the pleasure of chatting with Greg Williamson, who was not too long ago named managing companion of OGC, a partner-only boutique agency that serves as outdoors common counsel to companies throughout the nation, to get his ideas on the matter. Here’s a write-up of our energetic dialog on why a greater enterprise mannequin have to be constructed relating to different choices for legislation agency billing.

Staci Zaretsky (SZ): In case our readers are unfamiliar with the agency, please inform me a bit extra about OGC.

Greg Williamson (GW): OGC was based over 20 years in the past as a digital legislation agency providing in-house authorized counsel companies to corporations of all sizes at charges significantly extra reasonably priced and predictable than these of conventional companies. The agency’s revolutionary follow mannequin, which relies on the assumption that in-house lawyering is healthier for enterprise, pairs former GCs and senior in-house legal professionals with purchasers based mostly on their specific wants. For early-stage corporations, an OGC – aka outdoors common counsel – can function the corporate’s de facto GC, aiding with a variety of authorized wants on an as-needed foundation; and for bigger companies with an current authorized operate, an OGC can add bench energy or material experience with out having so as to add headcount. All of our OGCs have at the least 15 years of authorized expertise, with a lot of that point spent in-house, leading to a business-oriented strategy to downside fixing that’s extra sensible, responsive, and environment friendly than conventional companies.

SZ: Many legal professionals assume that the idea of the billable hour is “damaged.” What are your ideas on that?

GW: I couldn’t agree extra with this attitude. I’ve mentioned earlier than that the standard authorized companies supply mannequin is damaged – purchasers are pissed off by the dearth of predictability round value, and lots of legal professionals burn out from unrealistic expectations rooted in conventional agency hierarchy and a enterprise mannequin based mostly on billable hours. What units OGC aside and makes our mannequin distinctive is the way it addresses each side of that damaged equation. Our purchasers get a partner-level lawyer with vital expertise who can deal with each subtle authorized issues and day-to-day overflow assist however at high-value charges.

Our partner-only mannequin permits us to work rather more effectively on behalf of our purchasers, and the financial savings are handed alongside to them. And our attorneys can outline their life-style – there is no such thing as a minimal billable hour requirement and no enterprise improvement expectation. Our legal professionals have the pliability to pursue different pursuits — whether or not they contain caregiving, volunteer work, or journey — all whereas persevering with to do high-quality authorized work for extremely fascinating purchasers. With a year-over-year lawyer retention charge of higher than 90%, our distinctive worth proposition to wonderful legal professionals is unmatched.

SZ: Some Biglaw companies are contemplating transferring to value-based billing over the billable hour. Do you assume that’s a superb different strategy?

GW: The shift in direction of value-based billing appears to be gaining at the least some traction in Biglaw, and I feel a lot of that’s being pushed by purchasers in search of to optimize their authorized spending. To do this, corporations want extra visibility and predictability into outdoors counsel spend, and lots of bigger corporations have been investing of their authorized operations operate as a way of streamlining prices. OGC has been delivering high-value authorized companies for greater than 20 years. As a virtual-only, partner-only agency, we offer extremely skilled and complex attorneys at a predictable, hourly charge not seen elsewhere within the authorized companies market. As former in-house counsel, our OGCs perceive the problem that our purchasers face and try to offer correct value estimates for assignments based mostly upon the scope of labor. Our strategy results in larger effectivity, predictability in prices, and a powerful emphasis on delivering tangible outcomes, and it resonates with purchasers in search of transparency and cost-effectiveness. Biglaw does sure issues, like high-risk litigation and billion-dollar transactions, very properly. However other than these issues, OGC can handle a variety of points which might be of crucial significance to the enterprise and require an awesome diploma of expert lawyering with larger effectivity and worth.

SZ: How has your expertise as each outdoors counsel and in-house counsel formed your views on providing a greater enterprise mannequin?

GW: I began my authorized profession with an Am Regulation 50 agency, and had the privilege of working alongside some actually unimaginable legal professionals — a number of the smartest individuals you’ll ever meet. As my profession progressed transitioning to the position of a shopper of authorized companies, I got here to understand the distinctive qualities of excellent in-house legal professionals.

Nice in-house legal professionals possess a singular perspective, recognizing that their final goal extends past mere authorized compliance. Their focus is on delivering pragmatic, business-oriented options that empower purchasers to navigate authorized necessities whereas sustaining operational effectivity. It grew to become obvious to me that even essentially the most expert outdoors counsel, at instances, could lose sight of this purpose, resulting in pricey and irritating delays within the problem-solving course of.

At OGC, we’ve crafted a mannequin that brings our purchasers the very best of each worlds. They acquire entry to seasoned legal professionals with a wealth of expertise, all at charges that make wonderful authorized assist not only a risk, however a actuality. What units us aside is our understanding of the sensible intricacies concerned in supporting a enterprise, making certain a seamless integration of authorized options with operational effectivity.

On behalf of everybody right here at Above the Regulation, we’d wish to thank Greg Williamson of OGC for taking the time to assist reply some urgent questions on legislation agency billing, and why value-based billing could also be the easiest way to serve company purchasers.

Staci Zaretsky is a senior editor at Above the Regulation, the place she’s labored since 2011. She’d love to listen to from you, so please be happy to email her with any suggestions, questions, feedback, or critiques. You’ll be able to observe her on Twitter and Threads or join along with her on LinkedIn.