Professional Services
The CEO of a profitable law firm wanted to further grow profit but did not know what was impeding his efforts. $26M revenue, $16M compensation cost & $3.5M profit
increase in profit by merely breaking even on the five lowest performing attorneys. Attorneys incentives aligned to profit, not revenue, and tenure.
The Findings
Analysis ranked the most- and least-profitable attorneys and business practice areas.
Firm was incentivizing revenue and tenure, not profit.
Misaligned bonus structure hurt the bottom line and company morale.
The most profitable attorneys left for other firms.
Actions Taken
Restructured to focus on the most profitable practice areas.
Developed a compensation structure that aligned with profit and value creation.
“If we had known this a year ago, we could have kept our best attorney from quitting.”
Guide the Process and Solve Problems
A weekly, executive-level decision mechanism to guide the process and solve problems as they arise.
