More notes from Managing the Professional Service Firm…

• Rather than focusing on chargability and realization reports, look at profits per partner.
• For each activity the firm strives to improve (e.g. delagate better, develop higher value services) examine how each contributes to both short-term profitability and long-term health.
• These activities, in order of importance to health, are
  • Raise prices
  • Lower variable (delivery) costs
  • Fix underperformers
  • Increase volume
  • Lower overhead costs
• is so important and offers a systematic method for improving it.