| Your profit per Partner is too low? |
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Eric’s actions: |
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Establishes the profit for each job, job type, customer, and customer type, for the firm, and for each department within the firm. |
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This analysis takes into account the various costs involved in providing your service on each job. Salaries, pension costs, training, secretarial costs, and the cost of the building space used are included in the analysis of costs. |
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Specific departmental costs are then incorporated. These may cover, for example, recruitment and the cost of the time spent on marketing by Partners. |
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Further analysis will establish the impact on profit of, for example, fee earner utilisation, Partner to fee earner leverage, and expected fee rates compared to those achieved. |
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Your benefits: |
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Once the areas and the key issues affecting profit have been identified, ways of increasing the firm’s profit and profit per Partner can be considered. |
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Crucially, various ways forward can be modelled, so that their potential impact on profit per Partner can be assessed. |
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