Ken sent me a follow-up email on October 13th, updating his progress to transitioning a Firm of the Future.
Just to follow up on my earlier email regarding converting to fixed price agreements.
We are now at the point where all new clients are being engaged on the basis of fixed pricing agreements and we are converting our long term clients as their work comes due. You predicted that once we began we would not turn back and it is very true.
The most enjoyable part of this process has been the stunned look on our referral sources who first look incredulous and then, in two instances have said “brilliant why doesn’t everyone do this.” I have been buying lunches or coffee just to see the response.
Also we have now put in place three simple metrics to monitor results, monthly billings, turn around time and response time to queries and are going to announce to the staff that time sheets are going to be scrapped effective October 31. I think they already have an inclination so it will be very interesting.
My young partners and I have reached the point where we want to be able to say that we can no longer bill by the hour because we no longer track our client work by the hour. The information is simply no longer available. The response should also be interesting.
As I also mentioned in the earlier email we are requiring quarterly payments and no objections are being raised. The tradeoff against having eliminated the uncertainty of the mysterious future bill overrides any concern.
I have even done one engagement with a TIPS clause, along with a retainer.
I will keep you posted
Congratulations Ken—another Black Swan in the making.