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Tag Archives: law firm profitability

Core Concepts in Measuring Law Firm Client Profitability

Core Concepts in Measuring Law Firm Client Profitability-header

Note:  This is a guest post by David J. Caiati, manager of Professional Services with the LexisNexis software division. Law firms continue to struggle with finding innovative ways to sustain a traditional business model.  The key issue confronting firms of all sizes is how to maintain the same profit margins enjoyed over the years while at the same time addressing ... Read More »

A Study in Futility: Rising Legal Rates, Falling Realization

A Study in Futility Rising Legal Rates Falling Realization

According to a 2015 study published by The Managing Partner Forum, standard hourly rates for surveyed attorneys have continued to rise in recent years – even in light of difficult economic conditions – from an average of just over $375 at the beginning of 2008 to right around $450 at the beginning of 2014. From a law firm perspective, it ... Read More »

Legal Spend Trend: Big Law Winning More IP Litigation Work

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A new edition of the CounselLink Enterprise Legal Management Trends Report finds the largest of law firms – those with 750 or more attorneys – are winning market share in highly competitive IP litigation work.  An announcement published online notes: The largest firms are winning a growing share of market in IP litigation – from 36% in 2011 to 61% ... Read More »

 Drill Deeper than Income to Understanding Law Firm Finances

Drill Deeper than Income to Understanding Law Firm Finances

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. Lawyers are expected to learn what they need to know about practicing law in law school. Looking at the course offerings from any law school you will find criminal law, torts, administrative law, business law, family law and ... Read More »

The Secret Law Firm Metric Clients Will Pay to Improve

The Secret Law Firm Metric Clients Will Pay to Improve

Hint: It’s not a financial metric, but it can have a big impact on improving law firm profitability and growth. What’s more, it’s really not that big a secret if you’ve been listening closely to the clues your clients have been dropping: Like trying to negotiate lower rates, taking a long time to pay your bills, or simply “forgetting” to ... Read More »

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 »