Why Aren’t Associates More Profitable?
I had occasion to be on a panel with several other consultants and some managing partners recently. One of the consultants said, “As you all know, every law firm loses money on associates during their first three years of practice.” The panel (me included) smiled and nodded acknowledgment of this commonly accepted belief: all young associates cost more than they produce in revenue.
Taking Advantage of Emerging Practice Areas
Emerging practice areas can be exciting, but they’re also risky. This article explores seven key questions law firms should ask before investing in a new niche—and how to avoid chasing opportunities that won’t last.
Staying Out of Sam’s Club: Making Small Acquisitions Work
The recession is creating prime opportunities for law firms to grow through small acquisitions. This article explores how larger firms can strategically evaluate and integrate smaller firms—without falling into the ‘Sam’s Club’ trap of buying what they don’t truly need.
The Younger Generation
Are generational differences in law firms real—or a product of the firms themselves? This article explores how structural changes in work allocation and partnership tracks may be fueling young lawyer disengagement and high attrition.
Avoiding the Nuclear Option: Retooling Underproductive Partners
Firing underproductive partners isn’t always the answer. This article explores how law firms can retool attorneys into new practice areas—boosting morale, retaining talent, and turning potential losses into long-term gains.
Rigorous, Not Ruthless
Firing underproductive partners may feel decisive, but it’s no long-term fix. This article explores how law firms can replace ruthless ‘purges’ with rigorous standards and consistent accountability—reducing the need for drastic action.
Underproductive Partners
Underproductive partners aren’t new—but today they’ve become one of the toughest issues law firm leaders face. From tenure-like structures and collapsing practices to boredom, depression, and fading collegiality, the causes run deep. Instead of relying on reactive measures like demotions or firing, firms can protect their future by setting clear expectations, spotting early warning signs, and investing in long-term strategies that prevent “problem partners” from emerging in the first place.
Managing to the Highest Common Denominator
Not all clients are created equal—and the most successful firms aren’t afraid to admit it. By identifying your true “key clients” and treating them like the VIPs they are, you can protect your most valuable relationships and strengthen long-term profitability. From service teams to billing transparency, preferential pricing, and management attention, a smart key client program can transform loyalty into a lasting competitive edge.
Firing Clients
Small clients may be costing your firm more than they’re worth. This article explores how culling unprofitable clients—or managing them smarter—can dramatically boost profitability without a full client overhaul.
Building Individual Brands
Law firm branding isn’t about catchy slogans or trying to make the firm’s name bigger than its lawyers—it’s about leveraging what truly matters. Clients hire people, not institutions. The firms that succeed build their brand around areas of dominance and the reputations of standout individuals, turning personal credibility into lasting competitive strength.