Walker Clark Worldview
commentary and insights for law firm leaders
Five Hidden Internal Opportunities for Better Law Firm Profitability
For many law firms, profitability discussions begin and end with rates, realization, utilization, leverage, and expense control. Those measures matter. But they are often outcomes rather than root causes. A firm can raise rates, press lawyers to bill more hours, or reduce discretionary spending—and still leave substantial economic value on the table if its everyday work processes generate delay, duplication, avoidable write-downs, or client frustration.
Walker Clark members were pioneers in the introduction of continuous process improvement (CPI) and total quality management (TQM) into legal practice more than 30 years ago. These intellectual disciplines and their practical impacts are even more relevant and powerful today as artificial intelligence and advanced technology become a part of day-to-day law firm operations.
The basic straightforward premise remains the same: work is performed through processes, whether or not a firm has consciously designed them.
This article describes five internal work processes in law firms that often have the greatest—but usually hidden—impact on law firm profitability. They are not the only ones, but they are always a good place to start looking for opportunities to build sustainable profitability through Continuous Process Improvement and Quality Management.
Implementing Strategic Priorities in the Legal Profession
Why is change so difficult?
Change efforts are complex in any business or profession and are affected by many factors: e.g., clients’ needs; external pressures and expectations; competitive factors; economic and profitability dynamics; internal culture; personalities; power issues; stages of group development; and leadership capabilities.
There are no quick and easy answers; nor are there prescriptive solutions for success.
A Behavioral Model for Law Firm Leadership
What can lawyers expect from management, and what do those leaders have a right to expect from lawyers?
Any law firm can be an organization with designated, formal leaders. The most successful law firms, however, are evolving into organizations of leaders. In these firms, leadership effectiveness is based on the collective impact of what people say and do every day, i.e., a variety of specific, observable behaviors they choose to use in the work environment.
“Can’t we just do this ourselves?”
It’s a fair question, one that management consultants hear with some frequency.
Here are three reasons why not.
