profitability: a case study Ben Winstone A USTRALIA B ELGIUM C HINA - - PowerPoint PPT Presentation

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Feb 21, 2023 289 likes •363 views

Law firm pricing and profitability: a case study Ben Winstone A USTRALIA B ELGIUM C HINA F RANCE G ERMANY H ONG K ONG SAR I NDONESIA ( A SSOCIATED O FFICE) I TALY J APAN P APUA N EW G UINEA S AUDI A RABIA S INGAPORE S PAIN S WEDEN U NITED A RAB E

SLIDE 1

AUSTRALIA BELGIUM CHINA FRANCE GERMANY HONG KONG SAR INDONESIA (ASSOCIATED OFFICE) ITALY JAPAN PAPUA NEW GUINEA SAUDI ARABIA SINGAPORE SPAIN SWEDEN UNITED ARAB EMIRATES UNITED KINGDOM UNITED STATES OF AMERICA

Law firm pricing and profitability: a case study

Ben Winstone

SLIDE 2

Backdrop

More sophisticated GC/in-house legal
Continuing price pressures
Lack of pricing/profitability expertise
Competing interests
Appetite for change

SLIDE 3

Case study

FTSE 100 client, multi-million pound spend

– Price sensitive – New GC – Strategically important

Structural alignment
Wide range of work
Old menu pricing

SLIDE 4

Approach

Transparency
Analysis

– Profitability by matter type – Mix – Process

Future offering

– Outsourcing/out-tasking – Internal structure – Price

SLIDE 5

Findings

Existing price and delivery costs not sustainable
Reducing volumes coupled with more commoditised

mix – previous pricing outdated

Commoditised work was as cheap as regional

competitors

Varying operational process affecting commoditised

work

Differentiated work priced correctly

SLIDE 6

Solution

Solus position
Spend to remain broadly the same on projected mix
Identifying and process mapping all work that could

be delivered below associate level

Set up low cost delivery hub
Tighter internal controls
Regular review of arrangement