Why Time-Recording Remains So Very Relevant To Lawyers

Hardly a working day goes by when I'm not faced with another version of the reason a particular lawyer does not see any value in recording time.

There are many reasons given...and I will not try to make a complete list here...

I'm advised that a lawyer charges lump sums...so no need to "time-cost"...

I'm told that it's more trouble than it's worth...

I'm told that a lawyer is into value billing so it's pointless to record the time involved.

I'm told that a lawyer records all ClientTime but sees no point recording anything that is not billable.



One things sticks out to me after 38 years admitted...and it's the fundamental, unavoidable, truth that over 95% of lawyers in private practice who do not record where their time goes are under-achievers...many chronically so!

Senior partners with secretarial and law clerk assistance who bill about $250,000 a year in 2012 ( and who are not firm leaders in bringing in new clients and mentoring of fee-earning staff, are operating so far below par it's not funny...in fact it's very toxic for firm culture...

Chronic under-achievers do not normally provide good role models for employees, and generally don't create much leverage, and certainly very little profit. They often take home as much as they generate!

They tend to be poor at marketing, and tend to under-charge clients and often bill and collect slowly.

None of these traits are likely to create profitable practices that are worth much when succession time comes around.

Often these partners continue to expect to draw equal drawings...

They stifle the opportunities and enthusiasm of younger partners who can't get any decisions made that involve spending a little money, and cause profits per partner to be lower, much lower than they need to be...

I'm sure the problem goes much further than simple ignorance...

In my experience lawyers are quite intelligent enough to know that if their full performance is laid bare for all to see it won't rate very highly...better to trot out time-honoured excuses for not time-recording at all...

Recent examples have highlighted problems in firms where recording is very low...poor client engagement, failure to confidently tell the client what a job done well will cost, then doing work to keep the client happy but hiding it from view by not recording it, thus avoiding the firm forcing the issue by demanding that the client be billed close to the work recorded...

If a fee-earner who records poorly has high unbilled WIP and a low Realisation Rate on the WIP that is being absorbed you can be sure that there are deep-seated problems that will only be fully exposed when a person leaves...

Isn't it better to insist on a full file audit now so clients can be assisted properly and the firm get a decent outcome?

One solution for chronic under-achievers you cannot organise to retire completely is to pull back their hours and remuneration to match the level of their output. I have often experienced practitioners finding that released safety valve a great reduction in pressure...a big relief.

This does not change the fact that they may be occupying an office 24/7 and monopolising a secretary they don't actually need.

If the secretary is also recording time, under-utilisation there will be quickly and easily exposed...

The bottom-line...
Destructive pressures get created in law firms by gross waste of human resources...returns fro principals are low and cash flow is poor...so either lift production through sensible "man-management"or reduce resources at the pressure points to allow the firm a chance to move forward.