Many law firms today are far too focused on increasing market share; they should be paying attention to what makes them a more profitable business.
Market share doesn’t matter much if you’re not profitable, and firms cannot simply grow their way to prosperity by undercutting the competition. Instead, firms must focus on value creation and increasing clients’ willingness to pay for their services.
The question should be: “What can your firm do better, or more efficiently, and more profitably than anyone else?”
The Mechanics of Law Firm Profitability: People, Process, and Technology examines why a focus on profitability and metrics is reshaping law firm operations and matter management; how to define the bottom line and to distinguish between “good” revenue and “bad”; and how to change the dialogue from “hours and revenue” to “revenue and profit”, while changing the mindset from increasing market share to simply running a profitable business.
The Mechanics of Law Firm Profitability covers topics including:-
- The “every dollar is a good dollar” fallacy: The difference between good and bad revenue
- Increasing profitability by improving client intake
- Using KM to increase firm profitability
- Pricing, profitability, and compensation
- Measuring different practice groups, differently
- Four challenges in managing law firm profitability
- Strategy and culture driving effective use of people, process, and technology
- Profitability and the Concept of ‘Managing on the Edge’ – Why It Is Important to Regional Law Firms
