Visual Basic: Two Types of KPIs for Law Firms

Law firms have not necessarily used data to their advantage, like other businesses.  But, you know what they say: better late than never!  And, if you haven’t tried launching and managing KPIs in your law firm, there’s no time like the present, for doing just that.



Now, KPIs (key performance indicators) are simply numbers derived from statistics that define part of a law firm’s process.  For example, utilization rate is a function of how much work time actually gets billed.  And, net promoter score is a function of how willing your clients are to recommend you.  And, lean methodology offers a number of process-oriented KPIs for law firms.  You get the idea. 

 

Law firms can launch firmwide KPIs, which would apply to the firm, as whole.  Or, law firms can generate individual KPIs, for specific staff, or employees.  But, really there are at least two ways to utilize KPIs in the law firm environment.  One option is to use what I would refer to as ‘baseline’ KPIs, which are those standards that the law firm chooses to establish.  For example, our closing percentage for new leads will be 75%.  That would be a ‘baseline’ number, that the firm’s staff would be required to hit.  Or, you could take that same KPI, and understand that your firm is currently not hitting that number – but, you want them to.  Then, that same KPI can be used in an ‘aspirational’ fashion, a number that you review consistently, to hit a goal, over time.  And, of course, ‘aspirational’ KPIs can become ‘baseline’ KPIs, over time. 

 

This isn’t entirely surprising, because KPIs are really about motivation, and incentivizing law firm employees and staff, whether that’s to hit an established goal, or to establish a goal, to hit.  The question is, really, whether you’re there yet, or you’re getting there. 

 

. . . 

 

If you’re aspiring to use KPIs in your law firm, we can help.  Just reach out, and start using goals more effectively in your practice! 

Through a unique partnership between the bar association and Jared Correia's Red Cave Law Firm Consulting, National Creditors' Bar Association members have access to experienced law practice management consultants at a special discount rate.

To get started, visit Red Cave's NCBA landing page, and start running your law practice like a business.

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