Partners of firms often pursue dedication to client service and delivery of high-quality products to the point of neglecting the management and profitability of their own practice. Success tip # 13 – don’t operate in a cocoon. For example, don’t merely think you know how your firm’s billing rates compare to other firms -- actually know your firm against other firms with the use of benchmarking. Otherwise, to your surprise, your rates may be well below those of your competitors. Benchmarking helps firms track their profitability as they continue to serve their clients. How do you know what the best is if you don’t know how other firms like yours are performing? Without benchmarking, firms inevitably lead a provincial existence, blissfully unaware of what reality is.

What is benchmarking? According to The Rosenberg Survey, it is the process of measuring your firm’s performance by computing various performance statistics, analyzing performance by comparing those statistics to other firms and industry norms, and changing your firm’s performance by taking action in areas where your firm needs improvement.