This is the key metric to a partner's success, but no one talks about it

Everybody in the Business of Law talks about the partner's book of business and what they can bring with them on a lateral move.

But no one’s talking about the boring, tedious, and frankly unsexy thing that all partners should do. 

Bill and recover. 

Generating new business is one aspect to keeping a law firm afloat. 

But if a law firm is haemorrhaging money through most of their partners’ inability, apathy or fear to get bills paid on time, the whole firm is on shaky ground.

Even when the good times roll, law firms are sitting on a mountain of WIP (Work-In-Progress) and aged debts. 

Nobody talks about it. 

And yet there are so many easy wins: 

Get disbursements cleared asap by clients. 

Get money on account. 

Agree to a regular invoice schedule. 

Then stick to it and chase it. 

If you rely solely on poor 26-years-old Janette in Accounts Payable to do all your invoice chasing then, we have a problem.

Because the buck stops with you, partner. 

And whilst it’s astonishing how many partners don’t exercise prudent financial management, they’re not 100% to blame. 

Look at the narrative they are continually being pressed into pursuing. 

Chase this client. 

Win this tender. 

Get this mandate. 

Secure this client. 

Agree this fee. 

UP this fee! 

But it’s also because so few people within the legal industry are being instilled the fear of god in them that billing and recovery together forms one of the pillars of their success. 

Common sense dictates, if you’re not tight on your billings and tight on your recovery rates, you’re screwed. 

No one wants a book whose recoverability is so poor. 

Think of all that hard work you put in, the hours burning the midnight oil, missing your partner’s birthday or anniversary, the greasy takeaways you’re having to eat every night just to get your client’s work done. Think of all the overheads your firm has to cover. 

And when the time comes to having these conversations with your client, you discount a big chunk of WIP.  

Not only that, you manage to recover barely 50% of the invoiced amount nine months after issuing your fee. 

Is it any wonder so many law firms around the world are struggling? 

If you're a lawyer in a law firm, remember this: cash is king. 

As a recruiter, that’s the number one thing I look for in counsel and partner candidates, because not everyone's a rainmaker of John Grisham proportions. 

But they can still earn their keep with basic financial housekeeping 101.

This post was originally published on LinkedIn, click here to view. 

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