Source: Legal IT Insider
By Caroline Hill
The post-pandemic world has presented numerous challenges for law firms, requiring them to rethink their approach to managing matters and maintaining profitability. Legal project management (LPM) offers solutions to these challenges by introducing efficient and cost-effective practices. India Preston, director of platform solutions at Lupl, outlines how LPM can help boost law firm profitability, including some actionable takeaways.
Problem: Law firms face increased pressure to optimise matter management and improve profitability in a competitive market.
Implementation: By focusing on effective legal project management, law firms can improve their financial performance, streamline processes, and better manage risks.
Payout: By embracing LPM best practices, law firms can increase profitability, develop stronger client relationships, and create a more efficient work environment.
Here are five crucial steps to enhance matter profitability through LPM:
- Develop a Matter Plan
By having a detailed matter plan, you can work out the anticipated gross profit (GP) for the matter and adjust your plan to increase that profitability.
A comprehensive matter plan is essential for ensuring profitability. Break down the matter into tasks, estimate the number of people required to complete each task, and determine the number of hours needed. Consult your finance team for the bill rates and costs for each role on the team. This will help you calculate the anticipated GP and adjust your plan accordingly.
- Track Spending in Real Time
So often I hear about matter managers waiting until the end of a matter to find out how they really did. In terms of recovery, even on small matters, this is a massive gamble.
Read full article: https://legaltechnology.com/2023/05/11/guest-post-maximizing-profitability-through-effective-legal-project-management/
Source: Legal Technology
