Profitability RULES: Update on their Origin
September 02, 2004
Last month's sidebar article on "profitability levers" invited ' well, predicted ' corrections to my hearsay report on the origin of the RULES acronym for profitability factors: realization, utilization, leverage, expense control, and speed of billing and collection. <br>Joseph A. Bailey of PwC, a textbook coauthor cited in that sidebar and also the coauthor of this month's feature article on globalizing law firm operations, concurs with my source's belief that Bob Arndt was one of the RULES originators.
It's Not What You Bill, It's What You're Paid
August 13, 2004
Over the past two decades, the monitoring of legal bills by insurance firms that are paying for outside counsel has become standard practice. Whether using in-house accounting staff or hiring a third party, insurers have put attorneys on notice about what they will pay for, and how work must be documented. In turn, attorneys who defend insurance cases have had to adjust the way they do business.
News Briefs
August 10, 2004
Highlights of the latest franchising news from around the country.
An Examination of the Hotel Industry and Multi-Branded Franchisors
August 10, 2004
Franchises dominate such industries as fast food, automobile, rental car, and cosmetics, but perhaps no business model is as dependent on franchising as the hotel industry. As a result, the hotel industry presents an interesting study on how multi-branded franchisors deal with unique issues affecting the relationships between the franchisor and its franchisee, suppliers and vendors, and the traveling public.
Financial Analysis: Critical to Sound Strategy
August 02, 2004
With the legal landscape in constant flux ' including numerous high- and low- profile mergers, dissolutions and consolidations ' leaders of most law firms have been forced, willingly or no, to engage in some serious strategic thinking about their firm's future. For many firms, however, "thinking strategically" has failed to produce quality strategy.
Health Savings Accounts
August 02, 2004
Starting in 2004, law firms have another option in attempting to mitigate rising health insurance costs. Recently enacted Health Savings Accounts (HSAs) offer law firms and their employees a tax favored vehicle to pay for medical expenses.
Partner Compensation: Striking a Balance
August 02, 2004
Partner compensation is invariably the topic of most interest in every law firm. It is also a topic that involves the most fervent debate and encompasses the most varied points of view.
Basics Revisited: Evaluating The Profitability Of New Work
August 02, 2004
Your 50-attorney firm has been operating slightly under capacity; there is not enough work to keep all attorneys billing their standard hours. A prospect would like to engage the firm to handle all its litigation, which would mean a substantial number of guaranteed billable hours. Good news, right? This company, however, wants to negotiate a discounted rate and also wants specific partners to handle the work. Your initial instinct tells you to take on the work to keep the firm at maximum capacity. But will it be profitable in the long run? Should you take on the work? How can you decide?
