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Tag Archives: law firm profitability

The Two Simple Drivers of Law Firm Profitability

The Two Simple Drivers of Law Firm Profitability-3

Note: the following is a post written by Kevin Bonsor, director of Creative Services for the LexisNexis software division.  He sent this submission following a session by Joel Eaton, a professional services manager, titled “Profitability, Realization & Utilization” at the 2015 LexisNexis Juris Customer Conference in Las Vegas. Finding the bottom line, or net profit, at law firms is not easy. Law firms ... Read More »

CPA:  How to Fairly Calculate Timekeeper Profitability Ratios

How to Fairly Calculate Timekeeper Profitability Ratios

Note: The following is an excerpt from a new eBook titled 15 Ideas for Getting a Jump-Start on 2015 which is freely available with registration. One concept that my CPA firm is working with several law firms on is adopting an objective way to gauge and compare the profitability of individual producers, all the way from paralegals to partners. For obvious reasons, most ... Read More »

Citi Private Bank Law Firm Survey Finds More Signs Point Positive

Citi Legal Survey Finds More Signs Point Positive

The growing confidence observed across the US legal industry, including optimism from corporate counsel, at year’s end seems to be continuing. That’s according to the latest Quarterly Flash issued by Citi Private Bank which examined the full year for 2014. According to an executive summary we were sent by email: Law firm revenue grew, profits widened, productivity increased and demand ... Read More »

6 Simple Tips for Law Firms Tracking Utilization

6 Simple Tips for Law Firms Tracking Utilization

Note:  The following is a guest post by Amy Kosey, a veteran account executive in with the LexisNexis law firm practice management group. After several years of watching firm’s struggles, downsizing, splitting off and simply flat lining.  It may be time for shareholders to start focusing once again on the best practices to increase partner income. Gone are the days that you ... Read More »

Top 10 Law Firm Collections Challenges and How to Solve Them

How to Develop an Effective Law Firm Collections Strategy

In a Legal Talk Network podcast focused on law firm invoicing and collections, moderator Christopher T. Anderson remarked that upwards of 20% of legal bills are past due.  What is it that’s contributing to this ongoing law firm collections challenge? Some data we both collected and presented at a LexisNexis® Juris® User Group meeting may provide useful insight into the ... Read More »

Discounting Legal Fees Sends the Wrong Message

Discounting Legal Fees Sends the Wrong Message

Note:  The following is a guest post by Ann Guinn. If you are one of the many attorneys who regularly discount fees, you are causing yourself to underearn –and sending the wrong message to your clients. Sure, there are times when a discount is the right thing to do; but chronic discounting is a different story entirely. Let’s consider an attorney ... Read More »

5 Tips from Peter Drucker for Increasing Law Firm Profitability

5 Tips from Peter Drucker for Increasing Law Firm Profitability

Note:  This post was co-written with Loretta Ruppert.   Management guru Peter Drucker wrote his book The Effective Executive in 1967 yet it’s amazing how well his principles stand, the legal industry notwithstanding, in the current business environment. Law is, as Drucker might agree, knowledge work, and the sure path to improving efficiency in knowledge work is to do things better. ... Read More »

3 KPIs to Make a Law Firm More Profitable

3 KPIs to Make a Law Firm More Profitability

It almost sounds like one of those whacky “Lose weight with this one weird trick” internet ads: Some law firms are improving profitability without having to raise billing rates, win new business or without having attorneys bill more hours. These partners are improving their firm’s bottom line by rethinking efficient ways to manage the firm. A Law Firm, a Business ... Read More »

Six Business Metrics Every Law Firm Should Measure

Six Metric Every Law Firm Should Measure

One of the most ethical things we can do is to run a law firm like a business and be good stewards of our finances the budget of our clients said Christopher T. Anderson in a webinar titled Moneyball for Lawyers. The webinar dovetails on the popular 2011 movie by the same title, which is built on the premise that ... Read More »

7 Takeaways from a Geek’s Presentation on Law Firm Pricing

7 Takeaways from a Profitability Geek’s Presentation on Law Firm Pricing

The better law firms are at pricing the better it is for the market.  So said Toby Brown, a law firm pricing specialist and contributor to 3 Geeks and  Law Blog. His comments were provided during an outstanding ABA TECHSHOW session titled, The Changing Face of Large Case Financing & Billing. Lawyers are not comfortable having conversations about fees (both ... Read More »