Analytics playing a bigger role in partner compensation

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.

 

About Colin Cameron

Founder of Profits for Partners, Management Consulting Inc. We provide strategic profit-focused advice to professional service firms based on 25 years of executive management and consulting experience. I am a management consultant, chartered accountant and former COO of a major Vancouver, BC law firm. My specialties are profitability improvement, strategic planning, firm governance, partner compensation, financial management and operations management. View all posts by Colin Cameron

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