OF THE LAW SOCIETY OF SCOTLAND - The Journal Online

senior fee earners. This is likely to
result in a higher level of fee income
per profit-sharing partner, where
the median is over £400,000 for the
largest firms as indicated in the
chart:
The firms with ten or more partners
also had fewer support staff per fee
earner – just over one other person
(secretaries, cash room etc.)
compared with one and a half
persons in all other categories
of firms.
This better support staff ratio is
likely to result in lower costs per fee
earner.
Two conclusions in particular can be
drawn from the survey concerning
larger firms:
● Below a certain level you do
not necessarily make more
money by being larger –
indeed some of the most
profitable firms are sole
principals in rural areas;
● As would be expected, the
most profitable firms are some
of the large city firms who are
able to attract certain types of
commercial work not normally
available to many smaller firms.
They are also profitable
however because of some of
the working practices they
follow and their ability to assign
work to the most appropriate
e:
andrew@otterburn.co.uk
fee earner.
All participating firms have been
sent a free copy of “The 2001
Survey of Law Firms in Scotland”,
the detailed report upon which this
article is based. Other firms can
purchase a copy of the full report
which contains a wide range of
useful statistics and performance
indicators. Priced at £80, this is
available from Lisa Anderson at the
Society on 0131 476 8164.
In April next year the President will
be writing to all firms inviting them
to participate in the 2002 survey.
Participation is free and carries a
two hour CPD credit as well as a
copy of the survey report. In recent
years there has also been a prize
draw. This year the prize – of a
theatre weekend in London – was
won by Friels, a three partner firm
based in Uddingston.The Society is
again grateful to Alex Quinn for
sponsoring the prize in 2001.
* John McCutcheon, until his recent
retirement, was Professor of Actuarial
Studies in the department of Actuarial
Mathematics and Statistics at
Heriot-Watt University. He is a member
of the Society’s Remuneration Committee
and, since 1980, has conducted the
annual Cost of Time Survey.
Andrew Otterburn is a management
consultant and contributor to Update
courses on practice management. His
book on the Profitability and Financial
Management of legal practices is
published by the Law Society in London.