We help firms improve their profitability. We take a holistic approach and clients value our expertise on all aspects of the matter or assignment lifecycle starting from pitching, extending to pricing and fee negotiation right through to commercial matter management.
Our profitability related offerings are typically used by client leadership teams to support their firm wide strategic profitability objectives. Other clients have involved us when supporting practice leaders’ efforts to revitalise underperforming groups.
We often start by helping our clients identify the source of their biggest or most frequent profit leaks as well as to define their value-add. This helps them focus on those areas of greatest impact as well as to have better client conversations, turning pitching on its head.
Our renowned fee negotiation programme helps clients transform the way they approach fee related interactions with clients. We also work with clients to design tailored profitability playbooks and work with them to ensure successful implementation to transform the profitability of a practice and/or firm.
Success stories from recent programmes includes:
A leading insurance claims firm experienced a plateau in levels of fee income and profitability due to a declining relevance of the brand in many of its previously strong markets.
We worked with the firm to explore the most profitable future direction of the firm while preserving the great standing of the firm within the overall insurance market. PSFI supported the development of a plan to implement the changes in direction and worked with the leadership team to refocus the measures of performance that best supported the plan and improvement programme. The firm reworked its claims activity to increase gearing, lower the use of central London premises, and continue to build new services in commercial litigation and corporate insurance.
A leading domestic law firm was struggling to raise profitability. The firm had a culture of high partner autonomy resulting in hourly rates not increasing.
Working together with the executive leadership team our work included designing and delivering a programme to raise awareness for the major levers of law firm profitability and opportunities to apply these, introducing a common language and understanding around profitability & pricing, increasing collaboration across offices and practice areas for immediate profitability improvements, encouraging partners to set profitability improvement objectives and set the foundations for a more managed and co-ordinated approach to pricing and commercial matter management.
As a result, we are currently working on establishing and introducing a profitability and pricing governance framework as well as supporting key partners and support functions to implement it.