Many law firm compensation models are designed for individual gains rather than long-term growth and sustainability. Yet if a firm wants to promote the kind of cooperative effort that increases billings and profitability, it must change to a more cooperative compensation model.
The popular dicta says that people do that which is rewarded. Thus, review your compensation system to see what you want to achieve and what you reward. Are they the same? This is a good time of year to be asking this question, before 2007 begins.
"A day-and-a-half ago," as my mother used to say when talking about age, I was president of the California Young Lawyers Association, then about 50,000 lawyers age 36 or younger. I remember my induction dinner. I was proud to have been elected; my work schedule prevented me from being with my family as often as I should have or wanted … thus, I took my then age 6 and 8 son and daughter with me to the dinner. This was a first for those in my circle of colleagues and friends and set the standard for many young lawyers thereafter. (more…)
The Wall Street Journal last Saturday wrote about what will happen to companies when their Baby Boomers retire. This discussion is consistent with our recent comments about law firms forcing partners to retire at an arbitrary age, usually at 65 years. (more…)
It seems that my suggestion that "busy lawyers should consider getting a "ghost" writer to help start and/or maintain a blog" was perceived as an extraordinary idea. (more…)
Recently, I received a call from a lawyer wanting to know what percentage of his gross revenue should be allocated to rent, perhaps the number 2 or number 3 largest cost item for lawyers. He said he wanted to know whether his percentage was in line with other law firms.
My response didn’t satisfy him; he went to another consultant and was told the average was 12%. In a recent survey conducted by Juris, Inc., the percentage for occupancy cost was 9%.
Dennis Kennedy’s post today on this subject is brief, yet poignant, and the quotes he shares deserve deliberate thought. They echo my beliefs and previous commentary.
My experience tells me that sole and small firm lawyers’ billing rates, despite the publicity to the contrary, are below "market value." Rates can be increased a bit, generally. And no excuse needs to be given if the increases are done properly. I’ve written several suggestions on how and when to increase rates.
This week, Ed interviews Rick Borstein, Business Development Manager for the Legal Community for Abobe Systems, Inc. Rick discusses The new version of Adobe Acrobat<sup>®</sup> and how new features are of special interest to lawyers.
