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.
Managing in an Economic Downturn
In the second and third quarters of last year, economic advisers warned of a potential mild to moderate economic downturn in 2020 or 2021, and in light of those concerns we wrote our July Insight, Managing in a Downturn. At that time, no one anticipated the rapid series of events which have impacted the world over the past 4-6 weeks and the global recession we will likely face over the coming months.
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.
