This the third and final post in the current series about the most frequently observed factors in the business failures of law firms. The previous two articles on this subject described the failure to observe and anticipate and the failure to invest as two weaknesses that, if one probes deeply enough, can be found in most law firm failures. They also describe important risk management tactics that can improve the odds of long-term success.

The third frequent factor in law firm failures is the partners' lack of an understanding of profitability — how their firm makes money or, as is often the case, doesn't.