Posted by: johnocunningham | June 12, 2015

Best Blogs in May: Pricing, Compensation and Other Hot Topics

This is my 30th post in a series of monthly features that I have dubbed “Best of My Blog Roll.” The concept is simple – at the end of a month I peruse my own blog roll (see that column on the right) for material created by other bloggers that I think is most worthy of sharing with others, and then I report on it here.

For the month of May 2015, I have chosen to highlight, first and foremost, a post at the “Patrick on Pricing” blog about ALM’s 2015 Law Firm Pricing Report.

The most useful takeaways I got from this were:

  1. 82 percent of firms with more than 1,000 lawyers and 77 percent of firms with more than 500 lawyers now have full-time pricing professionals to help them with fixed fee pricing, competitive bidding, client fee discussions, budgeting, process improvement, project management and right-pricing of projects;
  2. 69 percent of firms report that their pricing professionals have improved their profitability; and
  3. more than half of firms intend to grow their pricing teams this year.

These stats and other report data clearly indicate that law firms are no longer pricing their services based on what they want to earn, but are attempting to price themselves competitively but profitably in a scientific way.

It is also interesting to note that many firms have focused on process improvement and project management training as a part of the “right pricing” movement. These firms are doing what their most prized commercial clients have done for a long time – improving efficiencies to lower costs while maintaining profitability.

Two other blog posts I liked in May were:

  1. A post on Tim Corcoran’s “Business of Law” blog, which delved into the tricky business of setting up lawyer compensation structures that reward efficient client service, responsible client development and collaborative behaviors that help firms grow; and
  2. A post by Steven J. Harper on his “Belly of the Beast” blog, which looked at the case of one well-known lateral hire as an illustration of what can go wrong in lateral hiring.
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