Preface ixAbout the Authors xiiiChapter 1How Can We Do Better This Coming Year? 1Let's Talk about Expenses 1Now Let's Talk about a Revenue Mindset 2Improving Revenue Is More Than Billable Hours and Rates 4Establish Revenue Capacity 4Financial Reports 6Low-Hanging Fruit 9Client Expectations 9The Significance of the Partner Compensation Method 10Other Revenue Enhancers 10Effectively Leveraging Associates and Paralegals 10Value-Based Fee Agreements Are Important 11Leadership and Management 11Conclusion 12Chapter 2What Do My Bookkeeper and I Need to Understand? 13Major Components of a Bookkeeping System 14Chart of Accounts 14Profit and Loss Statement 15The Balance Sheet 16Common Financial Reports in Law Firms 17Financial Indicators 18Financial Reports Needed to Recapture Lost Revenue 18Working with These Concepts 23A Summary View: The Pipeline Report 24Software Issues 25Chapter 3Why Are Client Expectations So Important? 27Client Intake 28The Consumer Client 31The Business Client 31The Intake Process Step-by-Step 32Step 1: Know Which Clients the Firm Wants 32Step 2: Recognize the "Red Flag" Clients 34Step 3: Get It Right at the Initial Client Meeting 34Step 4: Obtain a Signed Fee Agreement and Fee Deposit 36Step 5: The Reality Check 38Step 6: Confirm Client Expectations 39Client Intake Is Only the First Step 40Client-Centered Communication 40Step 1: Adopt a Client-Centered Approach to the Practice of Law 41Step 2: Set Standards for Client Communications 41Step 3: Use the Billing Process to Communicate Value 43Step 4: Manage the Client's Expectations of Cost 45Step 5: Recovery Issues 46What Could Go Wrong? 47The Changing Relationship with a Disappointed Client 49Chapter 4How Important Are Associates and Paralegals? 53Associate/Paralegal Balance 54Understanding the Role of the Paralegal 54Securing the Best Associates 55Recruiting 57Leveraging with Paralegals 58Pricing Services 61The Need for Production Goals 62The Importance of Adequate Support 63Challenges for the "Lifestyle Firm" 64Part-Time and Flexible Schedules 64Contract Paralegals 65Chapter 5Do I Need to Change My Fee Agreements? 67Step 1: Know the Rules 68Step 2: Learn Some History 69Step 3: Understand the Components of a Fair Fee 70Step 4: Consider the Three Basic Value-Based Fee Methods 71The Fixed-Fee Method 71The Contingency Method 73The Retainer-Fee Method 74Step 5: Consider Variations of the Basic Methods 75Blended Hourly Rates 75Hourly Rate with Minimum and Maximum Charge 76Budgeted Hourly Fees 76Segmented Fixed Fee 78Defense Contingency 79Step 6: Consider Other Combined Fee Methods 79Combined Fixed Fee and Contingency 79Combined Discounted Hourly Rate and Contingency 80Combined Hourly Rate and Fixed Fee 81Step 7: Find Opportunities to Move Away from Charging by the Hour 81Step 8: Implementation of Value Billing 82Understand the Cost of Providing the Service 82Identify Repetitious Document Preparation 83Develop Value Billing for Transactional Work 83Step 9: Identify Small Litigation Projects to Be Handled for a Fixed Fee 84Step 10: Practice Mapping Out a Case Plan at the Outset 85Be Prepared to Offer Clients a Choice of Fee Methods 85Chapter 6What Does Partner Compensation Have to Do with Revenue? 87Basic Partner Compensation System Models 88Formula System 89Subjective System 90Combinations 91Bonus Pools 91Productivity Reports Needed to Support the Partner Compensation System 92Key Productivity Factors in Today's Law Firms 94Leverage 94Realization 95Client Origination 96Promoting the Firm as an Institution 96Chapter 7How Will My Management Role Change? 99Understanding the Challenge of Leadership 99The Managing Partner Role 100Managing to Increase Revenue and Profits 101Diagnose the Revenue Shortfall 102Billable Hours 102Realization Rates 103Turnover Rates 104Tracking and Managing Results 104Analysis 107The Wrong Point of Reference 108Setting the Goals 108Make This a New Day 110Afterthoughts 113Appendixes 117Index 197.