At Kmart they know that the average selling price of a product is around $7 – as random as that may sound, knowing data like that is gold.
Well in law firm world, if you want to:
- win an ego contest, tell everyone what your hourly rack-rate is;
- stay in business, know what your, and your team’s, Average Realised Rate.
Because your costs calculated against a rack-rate is monopoly money – but costs calculated against your ARR might just help you pay out some bonuses this year!
As usual, comments are my own.