Law firm pricing directors

September 28th, 2012 by Altman Weil

More than 50 AmLaw 200 law firms have hired Pricing Directors in the last 18 months according to a new article in Corporate Counsel magazine.  This new ‘hot job’ is emerging as a way to maintain profitability in the face of increasing pricing pressures from clients.

“Given the increasingly competitive and tight economics of legal practice today, even in (especially in) the largest and most traditionally successful firms, the market has changed. Price can no longer be disconnected from cost, just as cost can’t be disconnected from value provided.

Enter the pricing director. These emerging leaders in firms are sometimes lawyers, but at this stage in the game, most of them bring experience and disciplines developed outside of the law—where pricing products and services is not only a norm, but also one of the most critical and revered aspects of business. “

What do they do?

“Pricing directors, at their core, are those within firms who help assess which categories the work falls into; which teams and workers are best suited to each matter and purpose or task; what experience, data, systems, or talent the firm brings to the matter that are distinguishing characteristics of the firm’s value; and how much each of these kinds of services provided to clients costs, profits, and advances the firm forward. These leaders are charged with transforming data and process to drive pricing that demonstrates the firm’s value to clients. Their growing role demonstrates a new path to profitability for firms suffering from a self-made downward spiral of discounted service. “

Read it at Corporate Counsel

This entry was posted on Friday, September 28th, 2012 at 2:09 pm and is filed under Innovation, Law firm finance, Law firm business model. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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