Compare your numbers with other solicitors and legal practices like you, so you know where your law firm stands - and what should be possible.
More importantly - as you probably already know the numbers - share this information with your fee earners to set expectations and develop a better understanding of how their ways of working can put more money in their pockets.
Key measures include:
Fees per Fee Earner
Fees per Equity Partner
Profit as a % of Fees
Profit per Equity Partner (PEP)
Fee Earners as a % of total headcount
Recorded chargeable hours per fee earner
Recovered rate per hour
Business Model options
Lock-up - Work in Progress, Debtors and combined (days)
Partner capital as % of fees
Bank Borrowings as a % of real partner capital
Client account balances as a % of fees
You can evaluate where you stand and what you want to improve on. There is a good chance that you will find that your lawyers need more help to understand how the way they work and manage client relationships impacts directly on financial performance - and what they should change to make a difference.
This is an area where we provide powerful training and ongoing support to help you improve the financial performance of your practice.