A recent article on Law.com, Partners Confront ‘Deeply Uncomfortable’ Client Communications on Soaring Billing Rates, highlighted a growing trend in the legal industry: many firms are shifting away from personal...more
As summer peaks with days hitting a sweltering 100 degrees, it might be challenging to think about the heart of the fiscal 2025 winter season. Our strategic pricing calendar reminds us that this time of year presents an...more
Strategic pricing within law firms is more than just setting rates; it is a year-round endeavor that aligns with the firm’s pursuits, understands industry market cycles, factors practice innovation, and, most critically,...more
Law firm leaders constantly seek more effective and transparent measures to assess and boost their financial performance. Although traditional metrics such as effective rates, realization, profit margin, and leverage provide...more
As the year begins, law firms transition their pricing focus from the planning stage to execution. In the second half of 2023, firms were busy evaluating their rates and pricing strategies to prepare for 2024. Currently, the...more
As we usher in 2024, the echoes of 2023’s law firm successes and challenges still linger. Last year, we observed mixed demand, gnawing expenses, the AI frenzy, and talent scarcity. In that tumultuous terrain, I frequently...more
Contrary to popular perception, law firm billing rates do not exhibit a steady upward trajectory. Instead, a closer examination of long-term trends reveals a pattern of cyclical fluctuations in billing rate increases. These...more
I occasionally receive questions about multi-tiered rate structures, which prompted my focus this week. RATE TIER STRATEGY DEFINED Rate tiering is a pricing strategy where law firms offer different rate schedules for their...more
In my last two pieces, we navigated the intricate landscape of the 2024 law firm rate setting and broached the powerful bond between law firms and clients when discussing rates and value. Today, let’s venture into the future...more
Following up on my recent piece about navigating the complex landscape of 2024 law firm rate setting, I’d like to delve deeper into the symbiotic relationship between law firms and their clients, especially when discussing...more
“The moment you make a mistake in pricing, you’re eating into your reputation or your profits,” wisely stated Katherine Paine, emphasizing the critical importance of understanding the strategic value in pricing. As we look...more
Summary: Building a strategy focused on fast-moving topics like AI requires a different approach. Assumptions are quickly proven false, and new ideas are introduced, causing our priorities to change. ...more
Summary. Building a strategy focusing on a fast-moving topic like AI requires a different rhythm. Assumptions made today may be proven false quickly. And your priorities may be different tomorrow. As discussed previously in...more
Law firm leaders face a mountain of AI noise at the extreme ends of the fear and greed continuum, drowning out the real story. But this phenomenon is familiar and has occurred before during other significant technological...more
Pricing is a vital topic today. And firms are often surprised when told that their current pricing approach costs them multiple millions of dollars annually, directly hitting the bottom line.[1] They are even more skeptical...more
Recent legal industry reports (i.e., the Citi Advisory and Georgetown Report) have highlighted financial performance for law firms in 2022, which presented law firm leaders with many challenges and opportunities while...more
Today’s blog is the last installment of a three-part series on Big Pricing Misses. Pricing is one of your strongest drivers of profitability. Consequently, improvements here will result in meaningful implications for overall...more
Today’s blog is part two of a three-part series on Big Pricing Misses. In part one, I described the current precarious law firm rate-setting environment that attempts to find value balanced with talent inflation, demand...more
As we look to close out 2022, it has never been more important to execute your pricing strategy well. The competitive market for law firms may be heading into a more challenging time compared to the past five years, and it...more
Great attention is paid to rate and pricing strategy for many law firms but, paradoxically, managing cash flow well is frequently overlooked. Imagine a scenario where a law firm executes pricing strategy terrifically only to...more
Good use of data is a differentiator, helping organizations act smarter and faster. But these ideas beg deeper questions....more
While we are in the early days, 2022 has already delivered many gifts to us, including stock market volatility, high inflation, the advent of military conflict, and continued law firm associate salary “wars.” Yet law firm...more
A recent AP news headline indicated that the price of cars, gasoline, restaurants, food, and other goods matched a 13-year high, raising pressure on the Federal Reserve, “whose officials have repeatedly said the increases...more
Iridium Technology and LawVision recently released the results of our 3rd annual law firm profitability survey that assessed the sentiment and performance of large law firms in the heart of the pandemic....more
Realization, the long-standing hallmark of law firm performance, is ready for a makeover. While the metric is not inherently flawed, its calculation and application have been twisted, resulting in misinterpretation and...more