Why Law Firm Leaders Need to Get Comfortable Talking About Profit

Let’s Talk About the Word No One Likes to Say

“Profit.”

For a profession that thrives on logic, structure, and measurable outcomes, law firms have a complicated relationship with that word.
It feels… impolite.

Leaders are comfortable talking about billable hours, topline revenue, and growth goals. But mention profitability — and the tone in the room shifts.

It’s as if acknowledging profit somehow cheapens the noble work of practicing law.

But here’s the truth: profit isn’t greed — it’s stability.

Profit funds hiring, creates breathing room for innovation, and ensures your firm doesn’t crumble when one major client leaves. It’s what lets you invest in better systems, retain your best people, and actually enjoy the freedom you built your firm to achieve.

Without profit, there’s no sustainability.

The Real Problem: Law Firms Confuse Revenue With Success

Many firm leaders point proudly to revenue growth as proof of progress.
But topline revenue doesn’t pay the bills.

I’ve worked with firms generating millions in annual revenue who still feel like they’re running on fumes. Their margins are razor-thin. Their owners are stressed. And their teams are stretched to the brink.

The pattern is always the same:

• Revenue climbs, but expenses climb faster.

• Partners get busier but not wealthier.

• The firm grows, but cash flow tightens.

The culprit? No one’s looking at profit.

Profit is the firm’s health metric — the one that shows whether growth is actually working.

What Healthy Profitability Looks Like

Every law firm is different, but a well-managed firm has three things in common:

Visibility: Partners can clearly see where money is made and where it leaks.
Intentionality: Budgets and investments align with strategy, not reaction.
Discipline: Leadership resists the urge to “spend their way” out of inefficiency.

That last one is critical.
If you’re constantly adding staff, tools, or marketing spend without a profit plan, you’re not scaling — you’re inflating.

Why Firm Leaders Avoid Profit Conversations

There are three reasons most firms avoid deep profit analysis:

1. It’s Personal.
Profitability often exposes inefficiencies, compensation inequities, or underperforming practice areas — and that can get uncomfortable fast.

2. It Requires Operational Maturity.
You can’t manage what you can’t measure. Most firms lack clean, real-time financial reporting. Without systems, talking profit feels like guesswork.

3. It Challenges Ego.
For many firm leaders, profit visibility reveals the truth about how well they’re actually leading. And that truth can sting.

But real leadership means confronting those realities — and fixing them.

How a COO Helps Firms Build Financial Visibility

Profit isn’t just an accounting outcome. It’s an operational reflection.

A strong COO (or Fractional COO) brings structure and transparency to firm finances — translating numbers into actionable insights.

That means:

• Building reporting systems that show profit per matter, per originator, and per practice area.

• Aligning compensation models to incentivize efficiency, not just volume.

• Clarifying KPIs that track cost per lead, realization rates, and collections velocity.

• Helping leadership understand the story behind the numbers — not just the totals.

When firms can see profitability clearly, decision-making gets smarter overnight.

The Shift: From “Billing More” to “Earning More”

The law firm model was built on billable hours — but the firms that thrive today are shifting focus to profit per person, not hours per person.

This shift unlocks massive growth.
Because when leaders start measuring productivity through the lens of margin, they can see what’s really driving the business forward.

It’s not about working harder — it’s about working smarter, cleaner, and with purpose.

The Bottom Line

Law firm leaders who avoid talking about profit aren’t protecting culture — they’re avoiding reality.

Profit isn’t the enemy of purpose; it’s what funds it.
It gives you options, security, and the ability to lead from strength instead of survival.

If you want to build a firm that lasts — not just one that bills — you have to start talking about profit.

To learn more about silent profit killers and how to avoid them take a look at our previous blog here.

At ING Collaborations, I help law firm leaders bring financial clarity to their operations — translating complex data into actionable strategy. Profit isn’t taboo. It’s the key to growth, freedom, and long-term sustainability. Let’s make sure your firm’s numbers work for you, not against you.