Editor’s Note: this is the first part in a three-part series looking at issues related to peer selection. Part II presented evidence that peer sets should be updated regularly. Part III looked at the drivers of profit per equity partner.
Selecting appropriate peers is a critical exercise for any law firm. Peer sets are used for benchmarking exercises, for annual rate-setting, and in understanding how wider trends in the industry are impacting the firm’s specific corner of the market. Often, lawyer and staff headcount decisions take into account peer ratios. Many law firms perform analyses to better understand differences with peers. Strategic growth goals are influenced by performance levels of peer firms.
