Blood, Sweat, and Billables: The 5 Metrics Ruling Law Firm Empires

Forget everything you thought you knew about law firm success. International consultant Patrick McKenna and The MAD Clientist surveyed 250 law firm leaders. It lays bare the metrics keeping the legal world’s power players awake at night, and the results are nothing short of an eye-opener.

Brace yourself for the raw truth:

Net Profit Improvement (37.7%) – The undisputed champion

Rewarding partners is only the beginning of this key metric — profits are the cheapest and lowest-risk source of capital. Higher profits mean more for:

• • • Training
    • Laterals
    • Technology investment
    • Entering new markets
    • Special bonuses
    • Client retention
    • Research and Development
    • Thought leadership

Firm Reputation (35.7%) – The dark horse climbing the ranks

First, notice how this rivals net profit improvement. This is a precursor to law firm marketers taking a big jump in value, respect and authority. Firm reputations can be a gateway to new business and growth (see below).

These leaders know a firm can’t grow without an impressive imprint on clients. This goes well beyond client awareness. It includes:

• • • Client perception
    • Understanding of capabilities homes in on:
      • Big deals
      • Private Equity
      • Complex litigation
      • Global delivery
      • Agency prowess
      • Private company needs
    • Positive branding
    • Ability to attract laterals
    • Creating differentiators
    • Client service
    • Thought leadership

Firm Growth (32.9%) – The eternal flame of ambition

Growth often equates with success in the eyes of the market — making it easier to attract laterals. Firm growth exceeding market growth (as measured by client spending) means the firm is gaining market share and clients. High-performing lateral partners are more attracted to growing firms.

Profit per Partner (30%) – The kingmaker metric

Partners feel good and enjoy the spoils. It can also be a tool to attract lateral partners. This yardstick becomes personal for so many partners.

Utilization (10%) – The fallen idol

Keeping everyone busy serves as a key component of profitability. Keeping the balance between business and attorneys is part science and part art — and a metric underlying profit and growth measures. It was once one of the top law firm leaders’ metrics — but no more.

Note: Total exceeds 100% as multiple responses were accepted

A Real Plot Twist

This isn’t just data — it’s the DNA of legal dominance in 2024 and 2025. The obsession with net profit screams volumes about the race to the top. But here’s the plot twist: firm reputation is breathing down its neck, signaling a tectonic shift in the industry’s soul. Law firms will start embracing client perception like never before.

Growth and partner profits still fuel the engine of ambition, while utilization — once worshipped by efficiency gurus — has been dethroned, left to lick its wounds in the single digits.

The competitive gauntlet hasn’t just been thrown down — it’s in every law firm’s face. Law firms are compelled to listen to these metrics — and watch for the new client-facing metrics driving the next wave of competition.