A mid tier law firm had reviewed their financial performance and seen that cash flow was poor and they lacked information about profitability of each client. There had been a number of calls on partner capital and it was agreed that things needed to change.
This was in 3 phases:
- A review process to identify service levels (eg Platinum, Diamond, Gold)
- A client review process to identify who warrants specific services
- A series of masterclasses in negotiation
It is rare to find an unprofitable client but mismanagement of a client will lead to losses and managing partner expectations (egos) is a delicate but important issue if each client is to receive and pay for the service that best suits them.
The vast majority of clients welcomed a frank discussion regarding their needs – some were willing to pay to have a greater degree of support. Some were disappointed not to have a partner on call, all day every day but understood that for the fee they paid it was unrealistic. Others understood and paid more.
It took a year to complete and by the end of the process, associates fully understood how to set new client expectations regarding service levels and existing clients adopted the new process readily. Some clients (7%) left the firm and it was agreed that this was the right thing for them to do as the firm had outgrown them and in many cases they were referred away.
Profit per partner increased by 17%.
If you want to improve your financial performance – call Paul on 01892 610060 or email : email@example.com