Firm Profitability: Key Indicators to Track

By MASSIVE Partner, Todd Franklin

 

Many attorneys tell me they want to run their law firm more efficiently, but don’t know how to get started. If lien resolution is a concern, my advice is to focus on both Leading and Lagging Indicators. Indicators from pre-settlement to post-settlement can teach you about your business and are important “snapshots” that offer actionable insight.

 

Key Indicators:

• Time on Desk (Post-Settlement) 
• Subrogation Timeframe (Pre- and Post-Settlement)  
• Client Satisfaction Index (Pre- and Post-Settlement)

 

An important indicator is the number of days between settlement and disbursement, also known as “Time on Desk”. These time costs are meaningful, both for you as the attorney and for the plaintiff. Start to track Time on Desk, when you begin to see that window shrink, you’ll have built trust with your client and your numbers.

 

Understanding the subrogation process is costly and starting lien resolution early is imperative to sustaining a firm’s profitability. Many firms spend a tremendous amount of money to get new cases in the door but don’t have a tested plan for the exit. This can lead to extended disbursement time, an undesirable result for you and your client. At MASSIVE, we believe the more you do to prepare for settlement, the faster you’ll disburse after settlement, which leads to better financial stability.

 

Remember, when you start lien resolution early, you’ll be able to close the case faster, which means a happier customer.

 

Hear more about how law firms can manage the time between settlement and disbursement to maximize profitability in my episode of the LAWsome podcast, hosted by Tanner Jones, VP of Business Development at Consultwebs. You can catch the full episode on our website.