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.
Continue reading by getting
started with a subscription.
Leveraging Law Firm KPIs for Business Success
By Peter Oliva
Utilizing Key Performance Indicators (KPIs) in a law firm is crucial for evaluating performance, profitability, client satisfaction, and overall success. Understanding which attorneys are the most profitable, which matters are the most lucrative, and the cost of acquiring new clients is crucial for making informed business decisions.
Staying Nimble and Embracing Values Are Essential for Mid-Size Law Firms’ Survival
By Michael Ferachi
In the ever-evolving legal landscape, mid-size law firms find themselves at a critical juncture. Seismic shifts, accelerated by the pandemic, have reshaped the very fabric of our industry. Now, more than ever, agility, innovation, and a steadfast commitment to meeting client needs are not just desirable traits, but essential for business survival.
5 Ways AI Can Strengthen Revenue Generation and Client Relationships
By Jody Glidden
Maintaining consistent communication with clients can be time-consuming for most law firm professionals. Balancing this task with other competing responsibilities becomes challenging when case management, administrative duties, and strategic planning also demand the lawyer’s attention. The time has never been better for firms to start introducing technology, like AI, to improve their overall business.
CLE Shouldn’t Be the Only Training Mandatory for Attorneys
By Sharon Meit Abrahams
State law bar associations mandate Continuing Legal Education (CLE) for attorneys to ensure that legal professionals remain informed of the evolving laws and to maintain a high standard of professional competence. Unfortunately, “how to be successful” is not taught in law school nor approved as a CLE topic.