One of the “state of the legal profession” reports that we classify as “required reading” for law firm leaders. For 16 years, our friends at Citi and Hildebrandt have published The Client Advisory and it is packed with important benchmarking data. The report runs 30 pages, and here are some of its highlights:
- Average lawyer hourly rates increased by eight percent (8.2%) in 2023.
- Meanwhile, collection cycles have lengthened by five percent (5%) and WIP is up by more than ten percent (10%).
- Total expenses were up almost five percent (4.8%) for the first nine months of 2023.
Looking ahead to 2024. law firms face these five challenges:
- Achieving growth
- Attracting and retaining talent
- Navigating flexible workplace options
- Adapting to Artificial Intelligence
- Managing expenses
This report also includes some interesting data about growth opportunities broken down by geography, by industry, and by practice area. This is another important report to circulate within your firm and discuss at future partnership meetings.