Technology: Future-proof your practice
For the past two decades, law firms have boosted partner profitability through increasing leverage. But this model is coming under greater pressure as demographic factors and changing attitudes threaten to stem the supply of young lawyers. Sally Gonzalez looks at whether technology can fill the gap
According to David Maister, a much-published authority on best practices in managing professional services organisations, profitability depends on five key factors: leverage, billing rate, utilisation, realisation and margin. The interplay of those factors in a specific law firm determines the net income per partner, which in turn drives profitability. As a result, business leaders in law firms spend a great deal of time thinking about how to influence those factors and strike the right balance leading to the highest profitability. Most focus on management strategies – only a few think about how technology might help.
This premium content is reserved for
Legal Week Subscribers.
Subscribe today and get 10% off.
A PREMIUM SUBSCRIPTION PROVIDES:
- Trusted insight, news and analysis from the UK and across the globe
- Connections to senior business lawyers within the leading law firms and legal departments
- Unique access to ALM's unrivalled, market-leading reporting in the US and Asia and cutting-edge research, including Legal Week's UK Top 50 and Global 100 rankings
- The Legal Week Daily News Alert, Editor's Highlights, and Breaking News digital newsletters and more, plus a choice of over 70 ALM newsletters
- Optimized access on all of your devices: desktop, tablet and mobile
- Complete access to the site's full archive of more than 56,000 articles
Already have an account? Sign In Now
For enterprise-wide or corporate enquiries, please contact Paul Reeves on Preeves@alm.com or call on +44 (0) 203 875 0651