Legal Industry Financial Performance Benchmarking Study
In order to find your firm's ideal financial shape, you need to understand how it is performing compared to similar firms, identify areas for improvement - and then implement strategies to address them. As part of our commitment to helping you run a successful legal practice, ALPMA conducts free annual financial performance benchmarking research for law firms in conjunction with Crowe Horwath in Australia and New Zealand.
Participating in the study will help you:
- Benchmark your firm's performance against the key indicators of financial performance, including profitability, work in progress days, debtor’s days, interest expense, labour cost, rent, and working capital.
- Interactively compare your firm's performance against similar firms using a number of filters including state, practice type and size of firm. This gives you a relevant and meaningful benchmark to work from and realistic goals to aim for.
- See how your firm's performance is tracking over time, whether you have realised your full potential this year and understand the gaps that need to be addressed to achieve peak performance.
- Gain insight into the industry's financial performance expectations for the coming year.
- Use this knowledge to find your firm's ideal financial shape.
2016 Australian Study
The FY16 ALPMA/Crowe Horwath Australian Legal Financial Performance Benchmarking Study survey is now closed for participation. This year, we extended the study to collect information on firm investment in innovation, strategies to finance growth and charge-out rates - as well as the firm's performance across a number of key indicators (like profitability, work in progress days, debtor’s days, interest expense, labour cost, rent, and working capital). The survey was conducted between December 2016 and January 2017. We are currently analysing the data, and the results will be available from late February.
If you would like more information about the Australian benchmarking study, please contact Connie Finestone, ALPMA's Operations Manager.
2016 New Zealand Study
The 2016 ALPMA/Crowe Horwath New Zealand Legal Industry Financial Performance Benchmarking Study survey was conducted in September - November, 2016. More than forty firms from across New Zealand participated in the study.
Participants have received an email with the results summary (available for download below), plus a login to access Open Measures, which enables them to interactively compare their firm's performance against the results from similar New Zealand law firms using a number of filters including location, practice type and size of firm. For the first time this year, members of NZLaw, Law Plus, LawLink and Law Alliance can view results by group. Firms that participated last year can also see how their firm's performance is tracking over time. This powerful analysis gives firms a relevant and meaningful benchmark to work from - and realistic goals to aim for.
If you would like more information about the ALPMA/Crowe Horwath Financial Performance Benchmarking Study, please contact Melanie Grace from the ALPMA NZ Secretariat.
Download the 2016 NZ Financial Performance Benchmarking Results Summary
2015 Australian Study
This year, more than 100 firms participated in the study. Participants will be provided with a log-in to Open Measures, Crowe Horwath's powerful benchmarking tool, to interrogate their results and visualise their performance to similar firms across eight key performance indicators on 23 February, 2016. Please note, information relating to each individual firm’s performance is strictly confidential. You will be able to see your firm's data that you have submitted for analysis; however, data relating to the other participating firms will only be available for comparison and analysis in aggregate form.
Download the 2015 Financial Performance Benchmarking Results Summary
2015 New Zealand Study
The inaugural ALPMA/Crowe Horwath New Zealand Legal Industry Financial Performance Benchmarking study was conducted in July - August, 2015. Thirty firms from across New Zealand participated in the study.
Download the 2015 NZ Financial Benchmarking Results Summary
"Our firm has undertaken this performance analysis for the past couple of years. It is well worth the time and effort it takes to complete (about 15-20mins).
The results are very informative and give the partners a more detailed insight into how their firm has performed when compared to other like firms.
Generally the partners only focus on total fees and net profit. These results breaks down those figures even more.
One of the main aspects of the benchmarking analysis is that it can tell you where the firm IS NOT performing well,
whereas the P&L results just tells you how much will be going back to the partners."
Kevin Johnston, Chief Financial Officer at Russells