Call 855-808-4530 or email GroupSales@alm.com to receive your discount on a new subscription.
Setting the next year’s billing rates follows a simple formula at most firms: last year’s rate plus a common percentage increase across all lawyer cohorts. A more disaggregated approach is needed. Specifically, firms should set higher percentage increases for senior lawyers and lower increases for junior lawyers. Why? Because, over the next 10 years, hours leverage (i.e., the number of associate hours per partner hour) at elite law firms will decline as more of the lower value-added work is handled not by junior lawyers, but by enhanced technologies, in-house counsel, and alternative service providers. To maintain profitability, the margin that was earned on the displaced junior lawyer time has to be recouped through higher margins on senior lawyer time. Failure to increase senior billing rates differentially, and thus to rebalance the source of margin from junior to senior lawyer time, will result in a calamitous decline in profitability. It can be avoided if firms start now to gradually change their billing rate structures.
By Scott Flaherty, Chris Johnson, Meghan Tribe, Roy Strom, Miriam Rozen and Lizzy McLellan
With the new year upon us, law firms have just been through the typical year-end crush of collections, budgeting, compensation decisions and more. The authors recently took a look at 2017's hottest trends, and explored what we could expect from them in 2018.
By Sharon Meit Abrahams
Before starting a training program, conduct a needs assessment when performance is inappropriate or inadequate. This means when one or more attorneys or staff are not doing what they should be doing, or they are doing something they should not be doing. Here's how to proceed.
By Vivian Hood
Although the current news cycle is a barrage of negative situations, the silver lining is that they offer law firms a wealth of teachable moments about the importance of preparing for and responding to a crisis situation.
By Michael P. Maslankammaslanka@fordharrison.com
A Different Perspective
Here are five ideas that lawyers can learn from the military. They just might work for you and your firm.