When Time is NOT on Your Side

In 1981, John Moschitta became very famous, portraying a fast talking guy in television commercials for Federal Express. Click here if you want to go back for a fun ride down memory lane. So cutting to the chase and not wasting your time… “Ever feel like that guy when talking with your attorney or accountant?”

Many executives and business owners I know loathe the idea of picking up the phone to talk with their attorney or accountant. The reason is simple; time is money! Once the clock starts ticking, one side of the conversation is trying to end the call much more quickly than the other side; which is not exactly a great environment for clients receiving the highest possible level of expertise and value. So, what’s the core problem? In two words, I believe the problem is “BILLABLE TIME,” which also occurs behind the scenes, long after the end of your phone call.

While billing by the minute/hour has been around forever, I believe it is bad for both clients and professional services firms that use this model.

To quickly illustrate, here’s what most firms will readily admit:
1. Pressure is placed on professionals to reach annual billable hour targets.
2. Professionals feel pressure to bill time to their clients as part of achieving annual goals.
3. Client invoices are usually based on units of time.

What firms will very rarely admit is that because of the pressure placed to achieve billable hour targets, professionals find themselves in a position where billing time to clients becomes their friend and your enemy. Have you ever received an invoice and wonder why the hours billed were so high relative to the value provided? Does this ever cause friction when you call to complain? Yes, attorneys and accountants are bound by high ethical standards, but ask them if there is an ethical standard for producing the greatest value to clients in the shortest possible amount of time.

While most professional service firms are comfortable maintaining the status-quo with their business and billing models, others desire to innovate and differentiate by taking the issue of time off the table. Does this sound intriguing to you? For two examples of firms that give clients opportunities to opt-out of the time billing model, check out GC to Go, a NewLaw Firm and Equinox Business Law. Being a champion for small business owners everywhere, I applaud when firms innovate in ways that eliminate clients feeling the need to talk like the “Federal Express Guy” during meetings.