Leverage compares associate and paralegal headcount or hours to partner headcount or hours. Higher leverage means more work performed by lower-rate timekeepers.
It is a primary driver of firm profitability.
Alternative Names:
Leverage, Associate Leverage
Why it Matters?
Leverage is where firm economics and client interests can align or conflict. Higher leverage lowers the blended rate a client pays while raising firm profitability, which is a genuine alignment. It conflicts where work is pushed to timekeepers who require more hours to complete it, which client guidelines address through staffing restrictions and task caps. Insurance defense guidelines frequently specify who may perform particular tasks for that reason.
Frequently Confused with
Related terms
Frequently asked questions
Does higher leverage benefit clients?
Why do guidelines restrict staffing?
