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Profit from knowledge (Pt 2)

15 January 2016 / Mark Collins
Issue: 7682 / Categories: Features , Profession
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Mark Collins returns with advice on how to use knowledge management to produce profit

In a world where clients are demanding “more for less”, law firms must learn to: analyse how much it costs to produce each piece of work; produce and deliver the work in the most cost effective way; and know what their client values in this type of work.

My finance director tells me it is all very simple: income minus expense equals profit. “Record more time, bill more fees, collect more money—keep the costs down, and we are laughing.” When I worked in-house, our general counsel was always under pressure to either employ less headcount or reduce external legal spend—or both. So the client wants more for less, but the law firm wants ever increasing profits. How can we square this circle? How can we compete for quality work whilst still being profitable? And what part does knowledge management (KM) play in this challenge?

Know how much it costs to deliver

Whatever your practice area, it is crucial to

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NEWS
Legal advice to people detained in police stations could be delivered by video link, Sir Brian Leveson has said, in part two of his Independent Review of the Criminal Courts
The Public Accounts Committee (PAC) has urged the government to move towards a less adversarial system of clinical negligence, after the total cost to the NHS quadrupled within 20 years to an eye-watering £60bn
Peers have warned impending legislation could put executors at financial risk when their loved ones die
Legal IT supplier InfoTrack has launched a conveyancing tool that speeds up the pre-contract enquiries stage by allowing both sides to collaborate in one shared workspace
Barristers met with 19 of their local MPs at ten Crown Courts in all six circuits last week, as part of a Bar Council and Criminal Bar Association initiative to defend juries and explain the factors behind the backlog of nearly 80,000 cases
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