Here’s some issues that are common amongst small and midsized law firms that should be addressed now to increase profitability.
Too many firms try to run as democracies where partners have full say on which clients they work for and the type of work they do. They’re not accountable for their actions and effectively act as solo practitioners. This is a sure recipe for mediocrity and substandard profitability. You need to centralize management with a Managing Partner assigned the authority to screen all significant new clients for potential profitability, say no to high credit risks, and impact partner compensation to ensure all partners are accountable for their actions and performance. The Managing Partner will also direct strategic planning and execute the Firm Plan.
You need the right people. Many firms have ill-defined partnership entry criteria and even less understanding of what it takes to remain a…
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