Billion Dollar Lawyers – and How Automated Time Tracking Can Help You Combat Greed

Today across the globe, millions of people useeven being digital, timesheets were still, and stall
timesheets, the ubiquitous time tracking tool thatare manual-entry, be that into an Excel
hasn’t changed much over the last 100spreadsheet or an online web timesheet product.
years. Not only are timesheets expensive toGiven the nature of timesheets, given that staff
administrate, riddle with errors and inaccuracies,are often encouraged to enter what
they are also costing both the users and theirthey’ve been doing every 15 minutes, we
clients billions of dollars each year inget to see how the whole unit billing façade
miss-appropriated billing.came into being, and how accountants and
Let’s take a real case example, that of alawyers were the first to snap up this new way
partnership of lawyers who bill using 15 minuteof printing money.
interval units, each lawyer with a charge-out rateHowever, in early 2001, all of this began to
of $500/hour. As a consumer who needs to usechange as the Window’s operating system
the services of a lawyer, this type of unit chargebecame more sophisticated, and the desktop
rate is astronomical, as each contact point withcomputer gained more power, allowing software
the lawyer, be he writing you a letter, advisingdevelopers to enter a new era of automated
you in person or on the phone, will cost you $125timesheets, or hands-free time tracking as
dollars for every 15 minute unit of time (or less)it’s now more often called. Timesheet
consumed. If for example you call your lawyercosts can in terms of administration can quickly
because you’re suing your employer forbe calculated here.
lack of good faith, and you want to know if thereHands-free time tracking was a term first coined
has been any response to a letter sent a coupleby an innovative company called MetriQ, now
of weeks ago, then there is a strong possibilityrecognized as the market leader in fully
your lawyer will charge you one whole unit ($125)automated time tracking solutions. The first to
for your two minute phone call. Remember thisrecognize the inherent costs of timesheets (a 2
phone call which contains no IP, and is just anminute entry every 15 minutes costs 1 hour/day
update on the status of the current process. Into administrate), and set about creating a
fact if you stop to work out the theoreticalsoftware solution that would allow the computer
maximum this individual can charge out in a givento manage the time staff spent working on a
year, you’ll be staggered it comes to aspecific job. Their hugely successful Professional
whopping $864,000,000 per lawyer (48 weekstime tracking software finally allowed businesses
*5*60*60*125) – that’s almost ato accurately time to the nearest second just
billion dollars for each employee within this legalhow long a staff member spent completing a job,
practice (theoretical max. assumes 1 unit will bespeaking on the phone or attending meetings.
charged for each second of work).Today a number of other vendors have joined
Now of course nothing like these fees are actuallythe throng in a race to dominated this bloated
charged out to the client, but the dollar valuemarket and to help businesses manage their
should give you a clear indication of howcostsings and billings to a level of accuracy never
consumers are being duped and grosslybefore dreamed of.
overcharged by the legal and accountingSo what of our greedy lawyers and accountants.
profession who insist unit billing is the only way forCertainly while timesheets dominate the market,
them to charge out for the time. While that maykeeping to fixed billable units is certainly not
have been the case using timesheets or timesomething that’s going to go out of
sheet technology, today in the 21st Century,fashion too soon, not given the mega bucks
there is no need for such obvious greed, nor isthese organizations can make without too much
there a need to bill by the unit, as both hardwareeffort. However, with the inevitable decline of the
and software currently allows timing to be done intimesheet, at some point, as now happens in
real-time, accurate to the nearest second.Auckland, New Zealand, some of the more
Almost 120 years ago Ford and Taylor workedwealthy clients of lawyers are saying – we
extensively on time and motion studies to bringwant you to represent us, but we want to pay
the model T Ford into production line reality. Theiryou only for the time you consume – and
work spawned the first pen and paperas such we’d like you to use an
timesheets, which acted as journals that could beautomated time tracking solution rather than
forward to accounts at the end of the month,timesheets. With modern locks and security
consolidated and billed out to the client. In the lateaccess, this is now possible, without the lawyer
60’s with Honeywell and IBM battling forbeing able to give false accounting or to double
command of the mainframe market, timesheetsdip, another unlawful trick that again works for
were digitized and centralized, giving managers anthe consumer.
instant snapshot of staffing resources. However,