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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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MOVERS & SHAKERS

Druces LLP—Afsor Ullah

Druces LLP—Afsor Ullah

Partner appointed head of Islamic finance

Birketts—Rachel Frost-Smith

Birketts—Rachel Frost-Smith

Legal director named as new head of children

Kingsley Napley—Tristan Cox-Chung

Kingsley Napley—Tristan Cox-Chung

Firm bolsters restructuring and insolvency team with partner hire

NEWS
Criminal defence lawyers have expressed dismay at the Lord Chancellor David Lammy’s plans to reduce the backlog by scaling back jury trials to murder, rape, homicide and other indictable crimes where the sentence is three years or more
MPs will vote next week on an amendment to fast-track the change to the unfair dismissal qualifying period, as the government’s flagship Employment Rights Bill returns to the Commons
Barristers have been warned to be on guard against anthropomorphism, hallucinations, information disorder, bias in data training, mistakes, data protection blunders and confidential data leaks when using generative artificial intelligence (AI)
Legal aid lawyers have welcomed increased fees for criminal, housing and immigration work
Public willingness to take part in class actions is rising, according to annual research by communications consultancy Portland
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