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Measurable Results Through Profit Centers
Profitability pressures are leading firms of all sizes to create and implement strategic plans. These strategic plans often call for expansion and growth of practice areas, growth through lateral hires, or creation of entirely new practice groups. Concurrently, partner compensation methodologies are being revised to hold individual attorneys accountable for their own results.
How can the combined effects of varied strategic moves be effectively measured? And how can individual performance results be merged analytically with strategic moves to assess their combined financial impact on the overall firm?
Readily available financial measures include billable hours worked, billed realization, billable hours collected, hours and dollars of aged work-in-progress, and aged accounts receivable. Time- and billing-related reports based on these measures yield useful information.
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