What gets measured gets done, as the old saying goes. Law firms are increasingly using the data in their practice management systems to provide more objective measures for determining partner compensation. The article below refers to the 4 P’s of compensation – Production, Procurement, Proliferation and Profitability. The emphasis on compensation is moving from revenue to profitability. Firms are focusing more on how efficiently you can turn revenues into profitability, and large practices with low margins are less desirable than smaller, more efficiently run practices.
How do you measure success for your law firm? The attached article suggests that you should focus on your clients’ metrics for success instead of your own firm’s metrics such as PPP (Profits Per Partner).
I agree wholeheartedly with focusing on client metrics instead of just your own firm’s profits. If you focus on your client’s success metrics first, then your firm profits will naturally follow.
Read the article. You will find a number of interesting measures that will help you satisfy your clients even more and drive your profits even higher.
The article below asks whether a strategic plan can compensate for a lack of leadership. I suggest that it can’t since you need leadership in order to execute a strategic plan. The answer for most law firms is that you need to address the leadership question as part of the strategic planning process. You may also need to appoint a managing partner to oversee the planning process and execute the strategic plan. The fact is you really can’t have one without the other. Without leadership your strategic plan will probably end up sitting on the shelf just like many other firms.