Insights
The Insights series draws upon our collective consulting experience to address topics that we consider of current interest to the senior management of law firms.
Factoring Profitability into Partner Compensation
Not all revenue dollars are created equal. So, how should firms balance the important role of profitability with the challenges it can create in order to incentivize and encourage partners to pursue more profitable work or to manage the work more effectively?
Vision 2020
Our strategy work with law firms is focused on planning for the future. Three to five years ago our strategy work often involved developing a 2020 vision and strategy – 2020 had a nice ring to it. Now we have arrived in 2020 and the future is today.
Setting Strategy – What Works for Law Firms?
We continue to see firms use a variety of approaches in setting strategy. These approaches vary along two principal dimensions: 1) level of partner input and 2) level of organizational process applied.
Defining a National Strategy
Based on our experience, there are at least three different paths to a national strategy, depending on a firm’s practice position, practice mix, and client base.
Measuring the Unmeasurable
Law firms must seek out more rigorous tools to measure and evaluate each partner’s qualitative contributions.
But We’ve Always Done It This Way …
Every firm likely has a sacred cow or two or three. The challenge, and the opportunity, is to make sure those sacred cows continue to serve the firm well over time.
What is the Meaning of Equity?
Equity in law firms carries many meanings. The key to promoting a sense of fairness in partnership thinking about equity is to better define the expectations of full equity owners, while creating space for those high value partners contributing in more individualized ways.
Planning for the Next Downturn
While the precise timing of a downturn may be impossible to predict, it is important for law firm leaders to prepare well in advance, and that time is now. It is unlikely that the next downturn will be as sharp or as lengthy as the crisis of 2008, but law firms are increasingly sensitive to market forces, so preparation is critical.
