Business Health Check
A business health check looks at the financial performance of a practice. It includes, but is not limited to, consideration of overall profitability, profit distribution to equity partners, key financial statistics, cash management, equity partner drawings, funding levels and significant business risks. A recommendations report is prepared as well as a scorecard quantifying additional profit that may be realised by implementation of the recommendations.
Net Profitability Modeling
Net profitability modelling identifies the key areas of specialisation which sustain the practice, top fee earners (i.e., those fee earners that the practice should endeavour to ‘tie’ to it) and business risks associated with ‘super performers’. It can be used in strategic planning to improve individual, group, and practice profits thereby increasing the overall profit distribution to equity partners. This service is normally used in conjunction with a Business Health Check or Due Diligence.
Cube Reporting and Implementation
Net profitability reporting, also known as Cube reporting, and the ability to make clear and achievable strategies that work, enable equity partners to make more money, the ‘smart’ way.
Cube Reporting will help you understand net profit by client, by work type, by specialisation, by fee earner, by team, by department and by location. It will enable you to better understand your business, so that you can identify opportunities for growth and profit improvement.
While most professional practices enjoy stable profit lines, a true understanding of the elements of cube reporting will assist equity partners to realise the full profit making potential of the business without the need to grow in numbers or to work longer hours (unless a conscious decision is made to do so).
Equity Partnership Renumeration
Equity partnership remuneration systems are a common source of frustration in professional practice. Traditional remuneration systems are often based on seniority rather than on merit, which often means that a firm’s top performing equity partners leave substantial amounts of money on the table for others to share.
Ideal remuneration systems should be low maintenance, replace the “perceptions” of performance with accurate information, be apolitical and considered fair by the majority. Remuneration systems also need to support partners at different stages in their lives and provide flexibility.
By creating a unique and flexible remuneration system aligned to the particular culture of your practice, Trans4mation will help you develop fair remuneration systems that will incentify your partners in the right way, aligning them to the overall strategy of the business.
Let’s face it. Running a business can be tough going and most legal firms experience tough times at some stage. Trans4mation can help build strategies to lift a business out of the spiral of worsening profitability and cash flow difficulties.
One-on-one coaching sessions
Imagine how your firm’s profit would improve if all of your fee earners were achieving their key performance indicators! It is often more effective for an external expert to provide guidance and support when there are performance issues in a firm. We work with individual lawyers or partners in your firm to help them realise their fee earning potential.
We provide business coaching to small legal firms and sole practitioners. Our one-on-one sessions will give you business advice and access to a senior management professional at a reasonable and affordable rate, without the need to hire expensive full time management staff. Our business coaching does work – our clients experience significant increases in their net profit (over and above the cost of using Trans4mation).