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.
