Law Firms as a Business
Do you know how law firms make money? In this episode we look at the commercial aspects of how a law firm works, and the varied roles and career paths within the legal sector for those with financial backgrounds. We also explore the financial structures of legal service providers, and the impact of technology on law firm finance.
Show notes
In this episode of ReImagineLaw we speak with two experts who have developed careers in the financial side of law firms: Gillian Cobb (Finance Director (Europe) at Kirkland & Ellis) and Chris Ward (Law Firm finance expert and trainer/consultant on law firm finance). Gillian and Chris explain to listeners the ‘nuts and bolts’ of how law firms make money. How can firms create a profitable business? What are their biggest costs?
The episodes addresses a few key questions. Does the work of the team managing finance in a law firm connect with those managing clients? What are the pressures and challenges within this? Most legal service businesses are ‘partnerships’ rather than a ‘PLC’ – but why is this, and what does it mean for financial management, career paths, and the culture of a firm? Gillian and Chris look ahead at the impact of technology when managing law firm finance and which tools are used to improve client services like e-billing and ‘extranet’ sites.
We always encourage listeners to undertake practical actions after listening to the episode.
Pick a well-known business (in any sector) and then talk to a fellow student or someone in your network. Discuss together how you think it makes money. What generates the most revenue for the business, and what are its largest costs?
Search online for 3 different types of finance jobs in law firms. Consider the skills they look for, and whether these match some of your own strengths?
Useful resources:
How do law firms make money? Information from Pinsent Masons and Harvard.
How law firms can benefit from e-billing.