The headline on our latest ALM Legal Intelligence survey was striking: 76 percent of big firms now employ some sort of pricing officer. And these positions are in the midst of a remarkable growth spurt. Forty-four percent were created in the last two years. Clearly this is a response by firms that recognize that they need help dealing with clients, many of whom not only want discounts but also proposals for non-billable hour pricing arrangements. Rather than composing as detailed an estimate as will fit on the back of an envelope, firms have turned to a new group of analysts who can sort through their internal data and practices.
Unless clients change their habits of the last half-dozen years, these jobs appear to be a permanent part of law firm administrative structures. Thus far, pricing departments tend to be small: Only 31 percent have two or more direct reports. And while half say that they’re part of the firm’s “senior leadership team,” most still find themselves reporting to chief financial or chief operating officers. Just 9 percent say that their pricing officer reports directly to the managing partner or executive committee.
