Paying for Performance in the Legal Profession

About one year ago I wrote about a common problem in the legal profession—overbilling—as a prime example of the Activity Trap. It was a frightening example of “billable hours” gone bad and becoming a perverse incentive at a major law firm. So I was really pleased to read an article in the ABA Journal about […]

Billable Hours and Perverse Incentives

Those who know me or the Vested business model know the importance of Rule #1 – an Outcome vs. Transaction Based Business Model. Transaction-based business models create perverse incentives because they encourage an ailment I call the activity trap. In my speeches and classes I use the example of a rat on a treadmill when […]