The average profitability of Australian firms rose 0.1 per cent to 9.5 per cent in 2013 while growth forecasts fell by an average of two per cent to nine per cent, according to the ALPMA/Crowe Horwath 'Financial Performance Benchmarking Survey'. This strategy is 'fraught with danger', says Philip Gleed of Gleed Legal, because it can discourage partners who are in currently under performing sectors but which have a longer-term prospect of high performance and growth.
Look at moving
He said: 'Some partners will benefit if they are high performing, but others may struggle to maintain existing income and have to look at moving to another firm that has a model which better suits their clients and level of profitability.' Source: Lawyers Weekly
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