A recent article in Corporate Counsel highlights a significant issue facing many GCs today: the persistent lack of transparency from law firms, particularly with respect to their billing practices. According to GCs, this issue not only strains relationships with outside counsel, but also undermines the internal credibility of in-house legal teams with corporate leadership, leading some to "scale back reliance on big firms in favor of cheaper alternatives." OGC is one such alternative that seeks to fix what is broken with traditional law firms by leveraging an innovative business model to deliver transparent, client-focused legal solutions.
The Crux of the Situation
In the article, GCs like Andrew Woods of PubMatic and Leanne King of Toyota Material Handling share their frustration with vague billing practices and unexpected rate hikes. Woods points out that billing descriptions like "analysis and advice: four hours" are insufficient and leave clients questioning the value received. This lack of clarity is compounded by rising hourly rates and a reduction in direct communication, which King says are sometimes non-existent despite requiring pre-notification of rate hikes, leaving legal departments in the lurch when bills arrive with higher-than-expected charges. Such practices prevent GCs from managing their budgets effectively and erode trust in their outside counsel.
A Transparent, Value-Driven Alternative
OGC's business model is purposefully designed with client
(and attorney) satisfaction in mind. As a fully virtual law firm,
our tech-enabled operations and cost-saving business practices
allow us to offer value-driven rates for legal services provided by
seasoned attorneys, all of whom bring a minimum of 15 years of
experience, including significant time in-house.
Addressing the concerns highlighted in the article, here's why
GCs should consider the OGC solution:
- Client-Centric Approach: As former in-house counsel, our attorneys are intimately familiar with the pressures and expectations faced by GCs. They have been trained to invest time in understanding business goals, as well as the operational dynamics driving them, in order to provide pragmatic, business-oriented legal advice that aligns with larger company objectives (e.g., revenue growth, increased operational efficiency, etc.).
- Simple Cost Structure: We understand that billing is often the biggest source of friction between clients and their law firms, which is why we offer a single rate billing model – all of our lawyers, regardless of their geographic location or legal specialty, are billed at the same rate. This structure simplifies budgeting for our clients, as they can predict costs more accurately.
- Dedicated Client Success Team: OGC prides itself on being #ETDBW, and one reason for this is our dedicated Client Success Team which oversees client relationship management, ensuring continuous, personal, and proactive communication with our clients. This team regularly checks in with clients to address any concerns they may have, whether around billing or otherwise. By serving as a bridge between our clients and our lawyers, they ensure that any concerns are addressed promptly and transparently.
- Real-Time Communication: Our attorneys also prioritize maintaining open lines of communication with clients for regular updates on business initiatives, as well as check-ins on project status and budget. Our clients know what to expect and when to expect it.
- Detailed Billing Practices: Our clients receive detailed and comprehensible invoices, including clear descriptions of work performed, aligning with the needs of in-house teams for greater transparency.
- Predictable Costs: Unlike traditional firms, OGC offers predictable, value-based hourly rates that are communicated upfront. Likewise, any changes in rates are discussed with a client well in advance, so that they can manage their own budgets more effectively.
The frustrations recently expressed by GCs serve to highlight critical areas where traditional law firms are falling short. At OGC, we have built our firm on principles of transparency, predictability, and client-centric service. We invite you to experience a different kind of legal partnership, one that truly understands and meets your needs.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.