Question:
I am a partner with a sixteen-attorney firm in downstate Illinois and a member on our three person management committee. My responsibility on the committee in overseeing the firm’s finances and supervision of the firm administrator pertaining to accounting and finance. In reviewing our financial reports I have noted that our effective billing rates (realization rates) are not what they should be. We are reluctant to raise rates to our clients. What other steps can we take to improve our effective rates?
Response:
The most direct way to improve rate performance is to simply increase rates at an amount at least equal to inflation and to do so often (at least once a year). Without regard to whether this can be done, there are several other important techniques such as:
Managing the client intake processes is probably the most important technique for improving rate performance. Intake management means:
Here are some ways to accomplish this:
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John W. Olmstead, MBA, Ph.D, CMC
Posted at 08:54 AM in Financial Management
Tags: Effective, Firm, Improvement, Law, Rate