When it comes to profitability, knowledge and productivity is money. Knowing and understanding the productivity levels of your lawyers and staff (back and front office) gives you the opportunity to make changes which can ultimately cut costs and increase profitability. While looking at your gross revenue may be easier, measuring profitability is the key to truly honing your business to meet its highest potential. Analyzing profitability shows you where your time, money, and other resources are being best used and where they are not.
Profitability isn’t just about cutting costs. It is also a good metric to determine what is effectively meeting your clients needs (isn't that an ultimate goal?) and what isn’t, as well as what’s working for your staff and what can be improved. Furthermore, in a competitive field like the law industry, you can’t just sit back and wait for your revenue numbers to drop before you make changes to your business model at the end of each year. You need to always be ahead of the curve and continuously find ways to improve your business before problems can even continue.
Sounds intimidating? It doesn’t have to be.
The Four Pillars of Law Firm Profitability and How BI Can Help
Here are the four main areas you need to keep in mind when trying to improve the profitability of your firm and the ways in which an effective business intelligence system can help you optimize them.
Marketing: Good marketing practices are crucial for maintaining and improving profitability. And yet, many law offices are severely lacking in this department. How can BI help you with marketing?? This provides accessible data and analysis of your business at all times. You need to know exactly who and how to target your marketing. Easy-to-use business intelligence software will provide you with the tools to see who your current and potential clients are, what their needs are, and what marketing techniques they respond to best.
Systems: Having efficient and consistent systems is essential for eliminating wasted time and saving money. BI streamlines your systems. Accounting, billing, scheduling, client data - all seamlessly updated and maintained by the right BI software. This frees up your staff to focus on other more important things and eliminates wasted time and resources.
Productivity: You want your attorneys’ time to be spent where it matters most. Evaluating productivity allows you to determine where an attorney needs additional support - in reports or resources. BI makes evaluating productivity simple with easy-to-use interfaces providing reports to clearly show how and where time is being spent.
Support: When you recognize areas of weakness in your business, it is essential that you provide the necessary support to improve and strengthen it. The right business intelligence software provides immense support for the whole firm. BI can pinpoint those weaknesses and then at the same time, offer the tools to address them entirely. BigSquare's true self-service infrastructure makes this easier from both front and back ends.
How to Improve the Profitability of YOUR Firm
Are you questioning or wondering about the profitability of your law firm? If so, introducing a quality BI system could be just what you need to evaluate and address issues and challenges of profitability. As a leader in the field of BI software, who better to choose than BigSquare whose case studies talk for themselves. At BigSquare, we take pride in providing you with a BI software solution that meets your law firm's particular needs. We offer training sessions and work with you and your team to ensure that everyone understands and is able to utilize the tools and technology effectively, as we understand how important adoption is within a firm.
Interested in improving your profitability today? Call us 724-416-5705 at or fill out our contact form here.
Do you want to see first-hand how our product works? Schedule a free demo today and lead your law firm in the right direction for future success.
BigSquare is the leading provider of Business Intelligence for law firms and professional service organizations. We focus exclusively on law firm reporting, law firm BI, law firm profitability, and law firm analytics.