Success Stories

Law Firm

Legalbill's Review and Management Solution helps an established law firm increase efficiencies by supporting development of a more effective business model.

Partners in a mid-sized law firm realized they weren't able to empirically show which areas of their practice produced the highest profits, nor were they able to directly link each of their attorney's direct efforts to the bottom line. When they approached Legalbill, their main objectives were to develop a more cost efficient staffing ratio - the mix of partners, associates and paralegals - and to identify the firm's most profitable practice areas. This would then be used to develop a more effective business model which would help achieve and maintain an acceptable level of profitability, and increase the operational efficiency of the firm overall.

Legalbill recommended the development of a cost allocation model based on an analysis of the firm's direct and indirect costs, which was then used to generate hourly profitability figures for all billing employees at the firm.

This profitability data was aggregated to generate overall profitability figures by timekeeper position, and was also compiled at a case and case type (practice area) level.

Legalbill's analysis delivered hourly profitability estimates for each timekeeper at the firm and calculated the average profit earned by each timekeeper position. Clear indications of which practice areas were the most profitable for the firm were also generated.

Legalbill developed a customized financial model that was used by the firm to identify not only the level of profit generated by each timekeeper, but also to determine the most profitable practices within the firm. This information was used by the client to build a business plan that included strategies for the development and expansion of the firm's most profitable practice areas.