CMS Cameron McKenna has introduced tougher billing targets for partners in a bid to improve the cashflow from recession-hit clients.
The firm has introduced two-monthly targets for billable hours and cash collection. ;Previously partners were assessed on quarterly performance.
Managing partner Duncan Weston said the move was designed to energise the business during a difficult period, adding: “This simply reflects market situation and brings more discipline and focus to cash management by having more regular target dates.”
The move follows other firms’ efforts to improve lock-up ;performance. Eversheds has introduced a ‘red card’ scheme, which sees partners given a yellow card if bills are sent out on time but are not paid. If billing targets are still not met, partners are given a red card and equity distributions can be withheld for up to two quarters.
Camerons recently overhauled its internal accounting system. The firm now uses a matrix system, pioneered by Weston in Eastern Europe, that allows practice group managers to analyse the performances of individual sectors and the lawyers working in them.