We will soon start accepting submissions for the 2008 Law Firm Economic Survey. This is our 3rd year to conduct the survey and in two short years we have created the largest survey of its kind focused on the mid-sized law firm. Our survey serves several purposes, including but not limited to:
- Providing a measure of annual performance for mid-sized law firms based on per-partner income;
- Validating the core profit drivers that affect per-partner income;
- Providing expert analysis and content for managers to help increase per-partner income.
This year we are adding a focus on client development activities. In our 2007 survey, 25% of managing partners responded that marketing and business development activities were their firm's best ways to achieve higher profitability. In the 2008 survey we are asking managing partners what marketing and business development activities they utilize and how effective each are.
We are also asking questions regarding rate as it pertains to practice area. I have had more questions regarding what firms charge for specific industries than any other finance-related question. Attorneys want to know whether they are charging the appropriate market rate for their specific industry. Since each industry can be pretty specific, we have chosen some broad practice areas that we hope will give firm leaders some insight into pricing.
We are also hoping to do more regional breakdowns by rate, utilization, margin, leverage, etc.; another area in which we receive many requests. Of course, the main focus of the survey will remain the law firm business model and the key profit drivers that affect per-partner income.
The survey will be broken down into two main parts: the first part requires financial data and will take some time to assemble since there will be questions regarding 2007 year end numbers (such as standard blended rate by equity partners, non-equity partners and associates, and paralegals). We will be conducting this part by telephone to help respondents with any questions. We hope this will also reduce the possibility of invalid responses. There have been several instances of firms having their responses disqualified due to inaccurate numbers after we were unsuccessful in our attempts to contact them to correct the responses. We believe the best time to validate responses is at the time of submission and hope the telephonic interview process will help in this regard.
The second part will be for managing partners/shareholders/directors/etc. Because this part doesn't require financial data (and thus shouldn't require assistance to complete accurately), it will be offered as an online questionnaire to encourage participation by managing partners.
The survey is geared to mid-sized firms. For us, that means firms from 5 to 100 fee earners (which includes partners, associates, paralegals and others who bill clients for their work). Although we hope to broaden the scope of the survey in the future, this year we are only accepting submissions from firms in the United States.
All respondents who complete the survey will receive a complimentary copy of our 2007 Law Firm Economic Survey and 50% off the price of the 2008 Survey. The price has not changed and is still $495, so the value for participating is approximately $750. The cost of the survey at $495 is among the lowest (if not the lowest) in the industry. Further, firms who also complete the Managing Partner section of the survey will be offered a summary benchmark comparison of their firm against other respondents. The benchmarking comparison is valued at over $1,200.
Due to the time it takes to compile the data and prepare the survey for release (which we hope will be mid-summer), we are only accepting submissions for a two month period and may stop accepting submissions at any time after we reach our target of 375 respondents. If you would like to participate in the 2008 Law Firm Economic Survey, please email me by clicking here and fill out the email request.
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Filed under Benchmarking by Brian J. Ritchey
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