Evolving Your Firm's Profit Model: Establishing a Partner Cost Model

Many firms are working towards developing strategies that help identify the cost of delivering services to client. With this, establishing a cost model for partners presents a unique challenge as many partners are compensated purely on end of year profits. Too little costs and your profit will be overstated, too much costs and partner work will never be profitable. This session will explore various methodologies for costing partner time in your firm’s profitability reporting and pricing models.

Learning Objectives:

• Understand the impact of cost rate methodologies on profitability reporting and pricing
• Consider when to use ‘actual’ cost rates and ‘standardized’ cost rates
• Review the pros and cons of some of the partner cost rate methodologies firms are employing today