I often speak to law firms about different ways to increase profitability. The attached article discusses eight good ways to increase profitability. The suggestion to focus on larger, more “institutional” clients that provide regular work is key. Focus on fewer, more profitable clients and service them well. Conduct regular client service interviews and make sure clients are satisfied and achieving their strategic goals using your legal services.
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.
Here is my latest white paper written for Clio on “Alternative Billing Structures in Law Firms”. In the paper I discuss how to determine the “hard value” that your law firm will provide during the course of the engagement. This will help determine the price you can negotiate up front before the engagement proceeds. If you can master value-pricing and this “hard value” determination process, you will unleash one of the major boosts for optimizing long-term profitability for your law firm.