Beyond revenues: A better way to compensate partners

Description

Abstract: As law firms move away from the traditional lockstep approach to compensation, alternative compensation methods are emerging. Some of these, however, are proving less effective because they emphasize revenues and other factors. A profit-based approach is more likely to help firms achieve their strategic goals. This article looks at several objective metrics that can be used in a profitability model, along with profit-based measures to incorporate into a compensation system. A sidebar lists steps that can help motivate partners to step up collections.