Follow Us
Call 855-808-4530 or email [email protected] 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.
*May exclude premium content
Tax Implications of Budget Reconciliation Bill
By Lawrence L. Bell
In this two-part article, we look at the proposed tax law changes in the budget reconciliation bill — the major legislation in 2021.
Law Firms and the Rise of Hospitality
By Anthony Davies
The law firm office cannot remain unchanged, as if frozen in time set to some date prior to the onset of pandemic, when the terms and meaning have all changed. In fact, the office must now provide benefits or an experience the lawyers and staff cannot get at home.
Highlight Client Service Skills In the New Year
By Sharon Meit Abrahams
Attorneys need their clients to see them as a trusted advisor and partner in their legal solutions. If the lawyer takes time at the beginning of the relationship to establish expectations, then future conflicts can be avoided or resolved more quickly.
Legal Ops Tech: Tips for Success with Cloud-based Practice Management In 2022
By Tomas Suros
While functionality and features are important, there are a number of additional considerations when evaluating a practice management solution. Will your platform provider serve as a partner that will offer expert guidance and be invested in your ongoing success?
Copyright © ALM Media Properties, LLC. All Rights Reserved.
