Was it way back in December that I wrote about the new Clio law practice report? And promised you more?
Sorry about that.
Yes, it was in the December issue of Arizona Attorney Magazine that I chatted about the Clio Legal Trends Report. You can read the column here.
Because I’m super-helpful, I’ve pasted in below what I wrote, so you don’t even have to click.
And tomorrow, I’ll offer some more thoughts on what we can learn from the Clio report—and reports like it. Here’s my column (plus an image):
We thought we understood the way the world worked—and then the Cubs won the World Series.
I suppose it’s good we’re still capable of being surprised. It probably says something nice about our capacity for joy. Or something.
Of course, surprises are not always happy, which occurred to me as I read a new report on law practice trends.
Via their “Legal Trends Report,” the people at Clio—the cloud-based practice management people—want you to know two things about your law practice.
First, your practice is a funnel—one that may be malfunctioning.
And second, consider using data—actual facts based in reality—to drive your practice decisions.
Clio will likely say I’m oversimplifying a vast array of takeaways from the report released in late October. But those takeaways—and the underlying facts—are pretty stunning.
Here is a link to the complete report. Read it yourself and let me know what you think.
And here are two insights compiled by Clio:
- The average rate billed by lawyers across the United States is $232 per hour.
- The total utilization rate (billable hours as a proportion of hours available in a working day) for lawyers in 2015 was just 28 percent. For solo lawyers, that number drops to just 22 percent.
What makes this noteworthy?
They can see, moment by moment, how many new matters are opened, how many invoices are generated, how many remain unpaid.
Does this spell the end of surveys based on self-reported data? We’ll see.
The second takeaway is related to the unprofitability of many attorneys’ law practices. When we look at just two of Clio’s many charts—Arizona’s average hourly rate, and its (gulp) average collection rate, the situation appears dire.
There’s definitely more to the picture. But as we head into 2017, we will seek ways to tell the true story of law practice challenges.
Until then: Go Cubs.Follow @azatty