A general rule of thumb I share with my clients is this. If your time is not focused on doing the work, generating the work, or managing your people and the work, then whatever tasks are taking up your time should be delegated to a non-fee earner. Do the Math. Look at your billable hour rate. Or look at what your time is worth if you work on contingency. Does it really make sense for you to be managing your IT, or Admin? Couldn’t you easily pay someone in the neighborhood of $25-$30 an hour to take over those tasks? Again, if you’re not doing the work, you’re not billing. If you’re not bringing in the work, you’re not growing your firm. And if you’re not managing the people and the work, there is more room for error.
The same goes for every other fee earner at your firm. If your law clerk is busy doing admin, that is non-billable time. You can’t expect your people to realistically hit or surpass their targets if they are engaged in work that is non-billable. You have a lot of money sitting on the table that could easily increase your bottom line. Always make sure your people are doing what is most valuable to your bottom line. Consider out-sourcing part of the lower-level work, or hire someone part-time if there isn’t enough for a full-time position. There is always a solution.
