Time Management: Poor Estimates and Time Capture

1 hour not charged per week = £15,000 lost per year at £300 an hour💰 . 
 
Today: TIME MANAGEMENT SIN 3* ⏲ : poor estimates and time capture. 
 
Are lawyers shooting themselves and their firms in the foot? 
 
When it comes to estimating fees and time capture, it seems that the answer is, yes.  
 
With the trend towards Alternative Fee Arrangements this is no less a problem. 
 
There are reasons for underestimating fees, some practical and some psychological.  
 
“Self-censorship”, “being too kind to the client”, “selling yourself cheap”, “not being confident about your value” are all psychological descriptions. 
 
A study of 115 lawyers by the American Psychological Association found that 20% admitted they would report fewer hours than actually worked if pushing against the top of their fee estimate range.** 
 
Was this misplaced generosity, not wishing to appear foolish or… dishonesty to appear more honest to the client 😕 ? Take your pick. 
 
Inaccurate time estimates do not serve the client as they undermine their financial planning. In worst cases, a lawyer who underestimates or under records may under-deliver to the client due to time pressure. 
 
Issues for the firm are, the loss of accurate performance data and financial loss from unbilled time. 
 
Inability to recover costs in full is a further issue, especially in large scale litigation matters. 
 
For the individual lawyer, inaccurate recording and estimates lead to a loss of control over time, out of hours work and stress. 
 
For a partner, the above is likely to have an even bigger impact. After all, something has to give from their multiple responsibilities. 
 
Reputations are also at stake! 
 
Here are some tips for accurate estimates:- 
 
🕰Break down the project into smaller tasks 
🕰Use past experience of similar projects 
🕰Get input from team 
🕰Ensure full time capture (properly trained team) 
🕰Consider resources and availability of delegation 
🕰Allow for contingencies 
🕰Review and update at regular intervals 
🕰In certain cases, costs draftsman’s input 
🕰Appropriate technology and a team who know how to use it! 
 
👉 If you would like to chat about how I help senior lawyers get control of their time, please send a direct message here on Linkedin. 
 
 
*See my post “7 (plus 1) Deadly Sins of Time Management” 
**Quoted in article by Dylan Brown on Lexis Nexis 26 March 2023