April 24, 2007
Law Firm Economic Survey
Last week I had the pleasure of speaking to a group of more than 50 managing partners and their administrators on the subject of law firm economics. The event was the annual managing partner luncheon held by the Middle Tennessee Chapter of the ALA. The timing was appropriate because the current Juris Law Firm Economic Survey is now open for participation. Survey materials have been mailed to over 2500 midrange-size law firms throughout the U.S. Law firms can also participate by going to http://www.jurisinsight.com/2006survey. Links to the survey are also available on www.Juris.com and www.morepartnerincome.com.
The Juris economic survey, one of the largest in the legal community, is unique in that it targets midrange-sized law firms, particularly those with 10 to 150 attorneys. The 2005 survey disclosed that partners in the top 25 percent earn twice the income of the next quartile and more than seven times the per-partner income of the lowest 25 percent. We expect this year’s survey to provide fresh insight into the economic state of these law firms and to shed more light on the behavioral differences that distinguish one law firm from another when it comes to the income the partners enjoy.The survey now open for participation covers financial results for the year 2006 as well as the outlook for 2007. Firms that participate in the survey receive the published results and accompanying analysis without charge. Other firms will be able to purchase the survey online from a number of sources including Juris.com and morepartnerincome.com.
The 2005 survey identified ten observations about midrange firms that influence law firm performance and partner income:
Partners bill more than associates
Less than optimal associate utilization impairs partner income
Realization is not a key differentiator for partner income
Top performing firms excel across all key performance indicators
Firm size (i.e. larger) is not a ticket to higher partner income
The negative impact or sensitivity to partner income of underperformance on key profit drivers is extremely significant
Top performing firms spend more
All firms can increase income through faster billing and collecting
Mid-sized firms do not invest in strategic planning and have an opportunity to improve performance by doing so
Law firms believe that they will continue to have pricing power
The 2005 survey results drove home a clear message. The top performing 25 percent of law firms, those whose partners earned twice as much as the next best performing group, paid attention to the numbers. They planned; they set goals; they measured performance; and they held people accountable.
I still have a few copies of the 2005 survey report. While the numbers are now getting stale, the suggestions and recommendations contained in the 55-page publication are still valid and valuable. Send me an e-mail at morepartnerincome@juris.com and, while supplies last, I will send you a complimentary copy of the 2005 report along with a hard copy of the 2006 survey forms. Complete the 2006 forms. Mail or fax them to Juris, Inc. or input your results online by going to http://www.jurisinsight.com/2006survey. Don’t miss this important and valuable opportunity to compare your law firm’s metrics with your peers and to gain new insights that can increase your firm’s per-partner income.
Morepartnerincome.com is sponsored by Juris, Inc. For information about Juris® products and services for increasing law firm performance and partner income contact Juris National Sales Center at 877/377-374, e-mail info@juris.com or go to www.Juris.com.
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