John Chisholm is a lawyer and value pricing expert and an advocate for professional firms to depart from the traditional firm model which prices solely on time.  A former Managing Partner and Chief Executive of two leading Australian law firms, he compellingly runs through the many arguments for a move away from the billable-hour model - satisfied clients, more enduring client relationships, a collaborative culture, a more sustainable model, healthier lawyers, greater retention of talent, more robust financial position, increased trust and relevance in the business and wider community, and the list goes on.   

Show notes:

[02:14] John describes his journey from law firm Managing Partner to consultant, which he 'fell into' at first. We talk about the challenges of being an outsider advising law firm Partners.
[08:04] John remembers his 'a-ha' moment when he encountered value-based pricing, after hearing the late Paul O'Byrne talk about it.
[12:04] The legal profession is stagnant on client-friendly pricing models, while the rest of the world innovates.
[15:19] Billable-hour pricing leads to a production mentality, which demeans lawyers. 
[17:39] The private profession is losing good people, especially women, who will vote with their feet away from an outdated model that damages wellbeing.
[20:32] As John says, clients don't even buy lawyers' time, which is an input. They buy outputs, outcomes and value. And they want certainty. 
[21:55] John answers my question on how law firms can move to a new model, away from the billable hour.
[26:56] Removing the billable-hour as a basis for charging clients can also mean a different way of measuring and rewarding lawyers' performance, from individual- to team-based metrics.
[28:20] More advantages of value-pricing include how it increases cash-flow and releases management and Partner time previously spent on billing disputes. 
[30:50] John challenges in-house counsel to participate in the push for law firms to innovate in pricing. Law firms also need more courage to lead.
[34:48] John touches on the loss of trust the profession is facing due to our inability to adapt.
[35:01] John predicts that global law firms will develop or merge into consulting firms which will see a business model shift.
[36:22] John is moving his expertise into the subscription-model of pricing, an exciting new idea that already exists in many items we consume, and helps deliver more options and build stronger client communities for lawyers.

For more on this episode, visit: www.newearthlawyer.com/john-chisholm