It was a 40-timekeeper firm with four name partners. For a long time, a senior partner had been giving his top clients massive volume discounts on top of rate discounts, and then staffing his matters with only the most senior staff. He racked up more than 3,400 billable hours every year. The firm paid him more than any other timekeeper, based purely on two metrics: billing revenue received and personal time receipts. Every year, volume grew and he requested more lateral hires to handle work he couldn't cover. But everything was not as it seemed. Volume was increasing year after year, but the name partners were taking home less and less money. Finally, management decided to investigate. The problem, of course, was simple profitability. ... READ MOREOriginally published March 28, 2013
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