Why “More Work” Is Rarely the Answer to Law Firm Profitability
When profits tighten, many law firms reach for the same lever:
“We just need more work.”
More matters.
More clients.
More volume.
But “more work” is one of the most dangerous answers to a profitability problem — because it often magnifies the issues already eroding margin.
Revenue and Profit Are Not the Same Conversation
Revenue is loud.
It’s easy to see.
Easy to celebrate.
Easy to point to.
Profit is quieter.
It hides in:
utilization gaps
write-offs
inefficient workflows
mispriced work
excess non-billable drag
overhead creep
That’s why firms can grow revenue year over year and still feel financially strained.
Growth without margin discipline doesn’t strengthen a firm — it stretches it.
Why Volume Often Makes Profit Worse
Adding volume without fixing structure usually leads to:
higher payroll without matching efficiency
increased write-offs and discounts
partners doing lower-value work
admin tasks creeping into billable time
slower billing and collections
more stress with less clarity
So the firm works harder…
…but keeps less.
This is how firms end up asking:
“How are we busier than ever, but cash feels tighter?”
Profitability Is a Leverage Problem, Not a Work Ethic Problem
Most law firms don’t have a motivation issue.
They have a leverage issue.
Leverage comes from:
the right work being done by the right role
repeatable workflows
pricing that reflects true effort
systems that reduce friction
leadership capacity that supports scale
Without leverage, volume only adds strain.
Utilization Drives Margin (Even When Revenue Is Up)
Utilization isn’t just about billable hours.
It’s about who is doing what work.
Profit erodes when:
partners handle work that should be delegated
attorneys spend time on admin or intake gaps
paralegals wait on unclear direction
work bounces back and forth for revisions
Even small inefficiencies compound at scale.
More work doesn’t fix this — it exposes it.
Pricing Can’t Fix What Structure Breaks
Many firms respond to margin pressure by:
raising rates
pushing harder on collections
adding “rush” fees
discounting strategically (in theory)
But pricing only works when:
scope is controlled
workflows are consistent
cost-to-serve is understood
If structure is loose, pricing discipline collapses.
And volume just accelerates the damage.
The Real Profit Question Firms Should Ask
Instead of “How do we get more work?” firms should ask:
Which matters are actually profitable?
Where does time leak out of our workflows?
What work is partners doing that they shouldn’t be?
Where does utilization drop before we notice it?
Which roles are overloaded — and which are underused?
Profitability improves when these answers are clear.
Why Firms Feel Busy but Underpaid
When no one owns:
utilization monitoring
cost-to-serve analysis
pricing discipline
workflow efficiency
Profit becomes accidental.
And “more work” becomes the default strategy — because it’s the easiest lever to pull.
How COOs Shift the Profit Equation
A COO or Fractional COO doesn’t chase volume.
They focus on:
improving leverage before scaling
aligning roles with value creation
tightening workflows
installing utilization and margin metrics
sequencing growth intentionally
protecting partner time
Profit improves not because the firm works harder — but because it works smarter.
Sustainable Profit Comes From Fewer Leaks, Not More Work
Healthy firms don’t rely on constant growth to stay profitable.
They:
know which work to say no to
protect margin intentionally
spot strain early
fix inefficiencies before scaling
grow when the math supports it
That’s what makes growth sustainable — and leadership calmer.
If your firm is busy but profit feels elusive, “more work” probably isn’t the answer.
I help law firms diagnose margin leaks, improve leverage, and design operational structures that make profitability predictable — not exhausting.