Client Profitability Analysis:
An Indicator of a Profitable Firm
You may be wondering if the client profitability analysis will really do what it promises in terms of putting your firm a step above the rest. You may think that this all sounds great, but that there’s no real way to know if the analysis is doing its job.
Among others, consider the following traits of a profitable law firm, and consider for a moment how the client profitability analysis can help a firm hone its skills in each area. Profitable law firms are:
Discerning
Focused
Organized
Meticulous
Lean
Attentive
In short, the best law firms are keen on their spending habits and the flow of money going into and coming out of their firm. They are organized in their tracking of hours and expenditures, meticulous when it comes to record keeping and productivity, and attentive to the needs of their employees and clients.
My favorite item on the list, though, is number 5: “lean”. This is the ultimate goal of any client profitability analysis. A lean firm has done away with all of the unnecessary counterparts and focuses solely on those who are performing well and consistently helping the firm move forward. In fact, many of the most successful firms have a history of “trimming the fat” from their force, both on the employee and client ends of the spectrum. These firms are quick to realize when a client or attorney is underperforming and take the measures necessary to find a solution to the problem.
This is where the profitability analysis is a firm’s best friend. By employing the correct analysis tools, your firm will be set up for success in the long run, and will be well on its way to joining other “lean” firms at the top rung of accomplishment.
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