Profitability: Addressing the Missing Link in Partner Compensation

In this session, you’ll address the increasing prominence of profitability metrics as a critical measure of practice, client, matter and individual performance. You’ll learn how to allay the fears of partners who believe sharing profitability metrics will disrupt collegial cultures or shift the balance of power. Additionally, the session will focus on profitability as a diagnostic to help partners make better-informed business decisions. You’ll be able to address how to incorporate profitability as a driver of partner compensation in a way that can strengthen rather than disrupt your firm's culture.

Objectives:

• Review how law firms are calculating profitability. (There is no one size fits all.)

• Analyze the differences between measuring short-term and long-term profit and consider cases. (There’s more to it than meets the eye.)

• Apply profit metrics to prioritize investments and allocate resources, like a real business. (Not all dollars are equal.)

• Describe how law firms and other businesses rely on profit to both drive and reward desirable behaviors. (It’s not only about results.)