Improve profit distribution in law firms
Topic: How fair profit distribution works in law firms
Why reinvent the wheel when it comes to revenue distribution?
In many partnerships it regularly happens at the beginning of the year: then the results of the previous year are known, and then each partner again becomes aware of how big the differences in contributions between the partners are. But instead of (only) debating about the (from the point of view of each partner) too little profit, it is important to look ahead and set the course for a better firm profit.
How to better distribute the firm’s profits!
Distribution of profits is not simply the choice of a different distribution key: only when all partners have more in the end will the firm be able to develop further. The cooperation in the law firm holds a lot of potential, which can only be achieved if the partnership talks about how to increase the profit for all. Economic analysis and reflection on the extent to which the current system of profit distribution contributes to misallocation can play an important role here. The further development of the system must take many aspects into account.
Advantages for law firms
- The partnership agrees on how to increase profits
- Sustainable differences are addressed and better avoided in the future
- Processes of optimization become possible instead of repeating the eternally same ritual!
In the C. H. Beck-Verlag we have given valuable advice on the topics of profitability and profit distribution!
Your consultant on questions of profit distribution in law firms:
Christoph H. Vaagt, phone 0049 173 8689 428; email@example.com
See also our study