Data-Driven Law Firm Resource Allocation: An Idea Whose Time Has Come - Above the Law

"BigHand, a legal tech software provider, recently released a Survey and Report entitled Navigating the Million Dollar Problem, Resource management for Profitability, Client and Talent Retention. The report is based on responses from over 800 law firm leaders and professionals across firms with 50 or more lawyers. The report confirms what I have heard over and over again from lawyers, particularly at smaller and midsize law firms: they simply can't find good quality associates, and when they do, they frequently leave for perceived greener pastures."

"Some Numbers But first, some numbers from the report that reflect the resource allocation problem and paint a stark picture: 43% of assignment decisions are made by lawyers, and 37% are based on personal preference over merit. 45% of the firms surveyed report they only have partial data on the capacity and utilization of their associates. Only 40% have partial data on the work allocated from partners to associates."

"Eighty-six percent of the firms surveyed reported that client demand had increased over the last year. At the same time, despite the increased demand, 40% said clients are reducing their spend, 38% are reducing the number of firms that they use, and 30% of the firms believed clients had found cheaper alternatives. Most law firms surveyed reported client attrition in the last 12 months."

Responses from over 800 law firm leaders across firms with 50+ lawyers show pervasive difficulty finding and retaining quality associates. Assignment decisions are often made by lawyers and influenced by personal preference rather than merit. Many firms have only partial data on associate capacity, utilization, and partner-to-associate work allocation, leaving firms effectively resourcing in the dark. Client demand has increased even as clients reduce spend, consolidate firms, and seek cheaper alternatives, producing measurable client attrition. Firms that retain and better utilize associates can capture significant opportunity. A resource management tool is presented as a solution to these gaps.

Read at Above the Law