Financial performance is an essential element of law firm management and strategic execution, yet there are many distractions and challenges that get in the way to achieve optimal results. Part of the problem is the many variables operating at the same time and understanding the underlying root causes of the sub-optimal performance. Are partners informed about the rate strategy and assist in its execution? Are they living their leverage strategy or going off track? Are they doing systematic client intake assessments on new client and matter risks.
At LawVision, we first learn our clients’ strategy, then do a diagnosis using data and firm feedback about its current performance. We factor all relevant variables and consider the human factors into new work streams and policies while helping to set up support systems to keep things on track. We will frequently review:
- Production optimization and leverage
- Pricing strategies and execution
- Intake strategies and risks
- Staffing and overhead efficiencies
- Practice performance for optimization and focus
- Profitability growth strategies
- Cash leakage and in-depth realization studies
- Profitability projects including simple profitability analyses to more sophisticated simulation
- Client, practice studies for profitability
While many of the projects described above suggest a very strong “by-the-numbers approach,” we have found that in fact these projects frequently require a human touch, and so all projects incorporate education, training, coaching and usually include the design of a partner support system to reinforce and guide lawyers during their normal routine. In all cases, we match the project scope with firm priorities and their cultural readiness to embrace the opportunity.
5th Annual Law Firm Profitability Survey
This recent survey, a joint venture between LawVision and BigHand, captures the legal landscape’s shifting sands—integrating age-old profitability ambitions with the transformative promise of AI. Even with economic headwinds, the symbiosis of technology and strategy foretells a nuanced future.
And, given the milestone of our fifth year conducting this survey, we are pleased to share that we possess several years’ comprehensive datasets. These datasets enable us to conduct year-to-year comparisons on critical profitability metrics, providing a deeper understanding of industry trends and changes over time.
Key Findings
- Profitability management remains a paramount concern for large law firms, and as we step into the coming year, the ever-evolving legal landscape demands innovative responses from these firms. Significant changes are occurring, driven by factors such as the adoption and integration of cutting-edge artificial intelligence (“AI”) tools and the continued regression of pandemic-related impacts. Consequently, law firms are navigating this shifting terrain by exploring fresh approaches to analyzing their profitability.
- Profit expansion remains on a steady trajectory, with numerous firms consistently experiencing growth over the past three years. However…
To receive the full report and discuss its findings — including how they can support a more effective profit strategy for your firm — please contact Principal Mark Medice.