OMC’s client was reviewing its panel of 70+ law firms with a focus primarily on driving savings through renegotiating hourly rates and volume discounts. Firms were also asked to volunteer details of pre-set fixed fees they might offer (i.e. fixed fees that are pre-set by reference to a work type before a firm is engaged and without the need for further scoping discussions). Telco was disappointed by the limited range of activities actually offered by way of fixed fees.
Telco asked OMC to help them expand the range of pre-set fixed fees i.e. moving from a supplier-led approach to a client-led approach.
Leveraging OMC’s extensive database of prices, rates and volume discounts, we quickly compiled an inventory of 300 separate menu priced activities, spanning all in-house legal service areas. We then designed a light touch approach to enable lead service area lawyers to fine-tune the scope and definition of each activity to suit Telco, before inviting suppliers to provide prices for these 300 matter types.
OMC also provided benchmark Menu Prices to allow Telco lawyers to compare firms’ fixed fee proposals to the market prices in-house teams are actually securing. Telco lawyers could then identify what a ‘good’ price looked like for each of the 300 activities, selecting an appropriate supplier using a market example pre-set fixed price.
The result was an increase from 20 or so fixed price items to 300, and the identification of c.£500k+ cost savings based on market prices. Other benefits included helping our client’s in-house team:
demonstrate greater value to their internal business clients by improving cost certainty and budget setting
collaborate with Telco Procurement to meet Telco’s wider cost objectives
release substantial lawyer time from scoping/negotiation conversations both at the start of matters and when bills are received
increased consistency of Pricing for all Telco internal clients
MENU PRICED FIXED FEES FOR FTSE TELCO