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Every year, The American Lawyer publishes a major survey regarding U.S. law firms. Of particular note to the industry is the section discussing profits per partner. The outcome of this survey can be a source of pride (and PR marketing) for firms that rise in the rankings, or a cause for chagrin as they fall. For partners specifically, benchmarking their compensation in relation to others is an intriguing concept. Surveys of this nature provide a barometer of success to those partners who are evaluating their worth in the industry.
Partners want to work for a firm that runs its operations well and gives them the best opportunity to be well compensated. Law firms want to attract and keep partners who will allow them to continue to grow. Understanding the factors driving profits to a law firm and eventually to the partner's pockets becomes imperative to this process. There are many specific traits that can be debated, but there are three inherent operational difference makers that every law firm can control: business development, pricing controls, and controlling overhead costs.
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