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.