Law Firm Margin Improvement

CHANGES TO FIXED PRICES AT A LEADING REGIONAL FIRM

Situation

A leading regional firm wished to respond to client demands for fixed pricing but were concerned about profitability risk.

Solution

OMC assisted the client to assess the profitability of a move from an hourly-based system of fee charging to one based on fixed prices for the entire matter or per phase of matter. The work covered five main practice areas (Property, Corporate, Family, Private Client and Litigation) and used a consistent methodology across them.

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The work identified cost drivers, the typical margins and profitability within each area, and made recommendations on what options the client had to better manage their margins and given the client a better understanding of competitive pricing and margins. We then worked with the client to implement the recommendations.