Which metrics should a firm really pay attention to in order run efficiently and profitably? We asked David Pulice, Manager of KM Practice Innovation at Reed Smith for his thoughts on this.
David:
I imagine like most firms we’re always looking at realization. We also try to incorporate leverage as much as possible. One key initiative that we’ve taken on recently is tracking our opportunities and eventual price structures identifying where we were profitable and where we were not. This enables us to better price similar engagements in the future to ensure that they are profitable. Additionally, we have a Legal Project Management team that helps legal teams stay on budget to meet the anticipated revenue gain.
Understanding what works in engagement pricing is definitely critical as is managing to the agreed upon engagement. Thank you David!