Elizabeth Harris of Allocatur Consulting join me this week to talk about value based pricing, getting rid of the timesheet and other aspects of creating a truly professional firm.
Elizabeth works primarily with legal firms. Allocatur helps clients work with their lawyers to achieve greater value for the corporate legal spend and achieve demonstrable performance improvements
Kill the timesheet. There are many ways that the timesheet limits a professional service firm. Without timesheets it is still possible to manage performance of a team. Timesheets and measures of productivity from them don’t indicate real performance. It certainly does not measure anything that is important to a customer.
Three (no four) action items :-
1. Just do it – don’t over analyse and delay. Just get in and take the plunge. Go with value pricing and get rid of timesheets.
2. You will get it wrong – Value is not in the mechanics or the time spent. There will be jobs you do that you price wrong. The internal measurement systems to replace the timesheet will take time.
3. Learn to communicate well up front. The value conversation is key. Communication skills are essential.
4. Resist estimates. You must scope the work first before you provide any price.
Elizabeth Harris – Allocatur Consulting