Law Firms Grapple With Compensation in U.S. Forumsaderantuser
By Megan Hall, Content Development Manager, Aderant
That’s the question Aderant has been hoping to answer through a series of discussion forums over the past month with firm leaders at large law firms in New York (Skadden Arps), Chicago (Winston & Strawn), Atlanta (Troutman Sanders) and Los Angeles (Nossaman). Attendees were invited to examine current remuneration trends and discuss how to respond to the challenges arising in the compensation sphere.
Should a firm should use profitability metrics when evaluating partner compensation? If so, which are the correct metrics to track?
Responses at all four events were mixed. The majority of firms said they do not use profitability metrics in their compensation models, but a few firms do. All firms, however, said they at least track these metrics. Firms that are not yet including profit metrics in their partner compensation model cited various motives, ranging from the lack of an effective profitability reporting framework to partners not having a complete understanding on how to maintain profitable client relationships.
Another challenge is how to balance the value of managerial skills and rainmaking abilities.
One attendee estimated that only about 10 percent of lawyers make good managers. “There is this tremendous tension between taking the person who is great with clients and putting her into a management role,” he commented. “Of course, the mix of talents that make you a good client-facing lawyer are the same mix of talents that make you a good manager. So, in general it’s a dilemma.”
Aderant, headquartered in Atlanta, Georgia, is a global industry leader in providing comprehensive legal business management software for law firms and other professional services organizations. Aderant is a market leader in technology solutions for practice and financial management, ebilling, knowledge management, business intelligence, matter planning, calendaring and docketing. Aderant is an established and trusted partner with its versatile and innovative technology solutions, superior customer service and reliable implementation process. Aderant operates as a unit of Roper Technologies, a constituent of the S&P 500®, Fortune 1000® and the Russell 1000® indices.
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