Adjusting the Numbers: The Future of Finance in Law Firms looks back at a year like no other in our lifetimes, highlighting pricing, budgeting, strategic planning and people management principles, and identifying good compensation practices that can be applied during the pandemic, its gradual cessation, and beyond.

Why this report, why now?We began 2020 in bright spirits and bountiful economic conditions; by early March all that had changed. Economic adjustments were made and, overall, firms ended the year in much better shape than their spring worst-case projections anticipated. Some firms were even close to their original 2020 profit expectations to date – largely due to quick actions to curtail expenditures as COVID-19 got underway in the US. Adjusting the Numbers: The Future of Finance in Law Firms looks back at a year like no other in our lifetimes, highlighting pricing, budgeting, strategic planning and people management principles, and identifying good compensation practices that can be applied during the pandemic, its gradual cessation, and beyond.Unique selling points:First title to look at financial performance post-COVID, focusing on pricing, compensation, financing, KPIs and partner management.

Executive summary.................................................................................................................... viiAbout the authors....................................................................................................................... xiChapter 1: Good compensation practices during COVID-19........................... 1By James D. Cotterman, Altman WeilChapter 2: Retaining your pricing confidence in challenging times........... 7By Stuart Dodds, Positive PricingStep 1: View pricing as a process.................................................................................. 9Step 2: The power of small changes.......................................................................... 9Step 3: Segmenting your clients................................................................................... 10Step 4: Helping your clients............................................................................................. 10Step 5: Managing your discounts................................................................................ 11Step 6: Reviewing and refining your practice group pricingapproaches............................................................................................................................... 12Step 7: Reviewing and selectively increasing your rates................................. 13Step 8: Keeping a clear focus on your cashflow and AccountsReceivable............................................................................................................................... .. 13Chapter 3: Partner performance – becoming and remaining apartner............................................................................................................................... ................ 15By Timothy B. CorcoranTo have under-performance, you must first have performance................. 16The Full Monty........................................................................................................................ 17Planning for success............................................................................................................ 18Evaluating performance (AKA where managers earn their pay)............... 19Carrots and sticks.................................................................................................................. 20ContentsivContentsChapter 4: Pricing, budgeting, and KPIs – all change after 2020? .............. 23By Mary Juetten, TraklightLaw is a business .................................................................................................................. 23Data before decision........................................................................................................... 24Cash is king............................................................................................................................... 24KPI basics............................................................................................................................... .... 25Five common KPIs................................................................................................................ 26The “I” in KPI............................................................................................................................ 30Budgeting is an art, not science.................................................................................... 31Pricing requires old math.................................................................................................. 31Chapter 5: The impact of COVID-19 on legal service delivery and clientexpectations ............................................................................................................................... ... 35By Richard BrzakalaThe new legal marketplace............................................................................................. 35Buying legal services........................................................................................................... 36The COVID-19 transformation...................................................................................... 37Pricing approaches............................................................................................................... 39Client expectations.............................................................................................................. 40Strategic change ................................................................................................................... 41Transforming legal service delivery............................................................................. 43Chapter 6: Options for law firm financing in difficult times............................ 45By Andrew O’Connor and Louis Young, Augusta VenturesThe five typical financing options available to law firms............................... 45Litigation finance as a risk-free option...................................................................... 47The mechanics of litigation finance ......................................................................... 49Commercial models for utilizing litigation financing........................................ 51Model two – portfolio funding ..................................................................................... 51Model three – law firm funding ................................................................................... 52Conclusion............................................................................................................................... .. 52vAdjusting the numbers: The future of finance in law firmsChapter 7: A flexible financial future.............................................................................. 55By Andy Poole, legal sector partner, Armstrong WatsonHow law firms have historically managed their practices andfinances............................................................................................................................... ....... 55The impact of COVID-19 on the performance and finances of lawfirms............................................................................................................................... ............... 57Anticipated impacts on law firms as we emerge from COVID-19............. 58Lessons learned from the COVID-19 experience................................................. 60Law firms of the future ...................................................................................................... 62