1. Has your management mandated (or gently suggested) that you reduce your spend on litigation? Would it be a good career move if you achieved a reduction in total spend?
2. Do your law firms spend more than the established budget?
3. In 2013, were you unpleasantly surprised by a bill you received from litigation counsel?
4. Do your cases have long cycles times? Do your cases tend to settle close to trial?
5. Do your outside counsel leave no stone unturned without clearing that approach first?
6. Do you (or your staff) have to spend time policing bills from your outside lawyers?
7. Do you pay your outside firms the same amount whether they achieve your objectives or not?
8. Did your outside firms raise their hourly rates for 2014? Did they provide added value to justify the increases?
9. Can you point to specific steps your outside counsel are taking to be more efficient in how they handle your cases?
10. Do your volume discounts result in actual savings on total spend?
If you answer some or all of questions 1 through 8 with a “yes” or questions 9-10 with a “no,” you really should be exploring value fees. When done right, such fees may help you reduce your spend by 30% or more.