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Firms Adding Financial Analysts to Calculate Profitability
Law firms are increasingly adding new staff members and software to calculate their profitability, helping firms determine partner compensation and make other business decisions.
Financial pricing and analysis teams — people with strong analytics and business backgrounds, often from outside the legal services industry — are on the rise in Big Law, say law firm leaders and industry observers.
"[Firms] have really built out their capabilities to analyze performance and analyze contributions on a practice level," says Michael McKenney, managing director of Citi Private Bank's Law Firm Group. This is increasingly clear through the financial staff positions that firms have added in recent years, he says.
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