Please update to the latest version, or use a different browser for the best experience. The lower the spend, the greater the revenue. But the best legal practice management software , like Smokeball, can help you achieve the results you want and get the business intelligence to do it. Policy Audit Frequency – The average number of days between firm operations and policies assessments conducted by the legal compliance team. Maximize your in-house team’s efficiency with Practical Law Connect. You can influence how efficient your legal department is by experiencing firsthand how this integrated, innovative offering can save you valuable time. Improve deadline compliance – The deadline compliance KPI tracks and measures how many matters meet the compliance deadline in relation to the total number of matters the legal team is dealing with at any given moment. But many thoughtful, progressive legal departments are overcoming a perceived fear of numbers and attempting to respond with meaningful metrics and KPIs (Key Performance Indicators). Immediately after the Global Financial Crisis, when all eyes – across all organizational departments – were on expense management, the general counsel often reported exclusively on outside counsel and external spend management; as a cost center within an organization that historically had not exercised budget management, this immediate reaction made sense. Cost performance index (CPI) 71. Measure progress over time: By monitoring your KPIs like revenue, gross margin and number of employees, you can monitor your progress toward your long-term goals. The legal administrative support team is in charge of developing a system where all legal papers (contracts, NDAs, etc.) Legal service metrics can be used to diagnose the root causes of the department-s low numbers and to report on accomplishments. Findings from the 10th anniversary report of the Law Department Operations Survey revealed the differences in the top key performance indicators today versus 10 years ago, mainly regarding legal departments’ emerging comfort, use of alternative legal service providers and tripling of “total outside counsel and service-provider spend” as KPIs. Real-time legal KPI project management is crucial for organizational success as the legal team needs to manage core competencies like the creation and supervision of contracts and memorandums of understanding between different organizations, litigation management and counsel, corporate governance, the oversight of the mergers and acquisition process, and the registration of patents. Increase production requirements – The production requirements’ KPI tracks and measures the paralegal department’s ability to remain engaged and productive over time; the higher this metric, the greater the output and the more successful the paralegal department. This KPIs measures the ratio between the e-billing process versus the traditional manual process. Merger Integration Cycle Time – The average number of days from the authorizing of the merger agreement until integration implementation is accomplished. This ongoing series will investigate why legal department leaders must evolve the performance metrics conversation from an exclusive focus on outside counsel and external spend management to a holistic overview that includes the efficiency and effectiveness of in-house staff resources. The following are sample KPIs for legal departments that law firms can also consider when looking at streamlining their practice. The higher the number of paralegals to lawyers, the more efficient the lawyer’s work process flows. Improve collections – The collections KPI is designed to measure and track the paralegal department’s ability to collect outstanding monies. Read more about each financial KPI. Improve the total cost of services (inside and outside) – This KPI tracks and measures the total cost of services, both internal and external. But before undertaking any data collection, the objectives for putting a data initiative in place or measuring against KPIs should be well documented and considered. Strategic Planning Reporting Results Balanced Scorecard . The key to a more effective legal department: Thomson Reuters Practical Law Connect. The more efficient the department, the greater the legal firm’s cash flow and the higher the profitability metrics. How does it need to be manipulated to have meaning? When putting KPIs in place for the legal department, it’s better to identify a smaller number of KPIs to reflect what matters most to the legal department. The key to a more effective legal department: Thomson Reuters Practical Law Connect. Related: Patent Researcher, Knowledge Management Specialist, Intellectual Property Counsel, Intellectual Property Attorney, Intellectual Property Licensing Specialist, Patent Counsel. are generated, distributed, organized, stored, and secured. What data is directly needed for this KPI? The first step here might be to seek out a conversation with the CEO or other organizational leaders who have an opinion on what performance might be collected. Delay in approvals. But regardless of a department’s objectives, data and performance metrics can be a powerful tool to convey that story and serve as a catalyst for change. Number of law firm secondees and/or contractors vs permanent staff – A secondee is an employee that is seconded to a host company from an originating company. Related: Mergers & Acquisitions Director, Business Development Manager, Deals Analytics Associate, Mergers & Acquisitions Management Consultant. Expert HR advice is available to all customers free of charge. KPIs is how you take the pulse of your firm and ensure that your business is performing at its best. The KPI software developed by Legal Suite allows users to monitor and report on the major series of key indicators for measuring legal performance and service quality. Related: Governance Analyst, Corporate Attorney, Corporate Counsel, Legal Systems Administrator, Regulatory Analyst. Gant Sowinski, Associate General Counsel with Michelin North America, talks with us about his experience defining Key Performance Indicators for … This KPI allows management to determine where this threshold is, to decide when to hire an in-house legal team. These KPIs are aimed to improve core competencies like corporate governance, mergers and acquisition process, litigation management, and legal administrative support. Copyright Disclosure-to-Filing Cycle Time – The average number of days from disclosure up to the time copyright is filed. Often, despite good intentions and a sound data collection process, many legal departments find themselves asking, “Now what?” Accordingly, this series will also share examples of process improvements or other changes a department might consider to achieve greater department efficiencies. Trademark Disclosure-to-Filing Cycle Time – The average number of days from disclosure up to the time a trademark application is filed. Related: Corporate Litigator, Litigation Support Analyst, Corporate Attorney, Corporate Legal Analyst, General Counsel. They are driven in part by the size of the department and the nature of the legal matters it handles, including repetitive nature, magnitude, availability of external benchmarks, sophistication of internal … Improve quality of legal work and internal satisfaction with services. Simply send us your job descriptions and we will set up your evaluations. 5. KPI and analysis of the underlying data can sometimes result in changes to processes outside of the legal department’s purview. Percentage of Granted Trademarks – The percentage of registered trademarks versus the number of trademarks filed. KPI Dashboards are the perfect tool for your performance tracking reports as they can be used to visually depict the performance of an enterprise, a specific department, or a key business operation. This … Legal department leaders need to know the right information to manage the department toward its goals, not just more information. Spend to Budget. Co-Founder & Alabama Native . You can influence how efficient your legal department is by experiencing firsthand how this integrated, innovative offering … This will also greatly assist your finance team and the ability to project cash flows. Quickly drill down to the exact issue on your desk and get the resources you need to work on it right away. Cost variance (CV) (planned budget vs. actual budget) 68. Take a look at 18 defined examples. Examples of project management key performance indicators: 64. KPIs for the Efficient Legal Department. The litigation management team undertakes all tasks related to common courtroom procedures as a representative of the firm. Here are some reasons why general counsel undertake a metrics initiative: These are some “storylines” to consider when identifying what data to collect and what key metrics to measure. By implementing KPIs, legal department leaders can demonstrate that they are taking control of their department’s spend and aligning their day-to-day performance with the goals of the business as a whole. What more can the general counsel celebrate other than her ability to better manage outside counsel? Legal departments do not always lend themselves to neatly setting goals like the business units, i.e., it can be difficult to measure “success” in legal vs. measuring profits and sales or setting key performance indicators (“KPI’s”). Monitor company health: You must monitor KPIs to monitor the overall health and performance of your organization.It can be useful to measure a few KPIs in the categories of employees, customers, processes and revenue. KPIs is how you take the pulse of your firm and ensure that your business is performing at its best. Schedule performance index (SPI) 70. increase the percentage of cases solved/resolved successfully – This KPI measures the ratio between the number of cases successfully resolved in relation to the overall number of cases over time. KPIs allow you to know the performance of your department or organization. Co-Founder & Alabama Native . With many legal departments, this occurs automatically because all … Increase matters per attorney and/or per paralegal – This KPI tracks and measures the number of cases (or matters) per attorney or paralegal. Read more about our experience in serving specific industries. Improve (reduce) the cost per lawyer – The cost per lawyer KPI tracks and measures the cost of retaining an in-house attorney versus the income the attorney generates. 18 Key Performance Indicator (KPI) Examples Defined Key performance indicators can help your organization or department succeed. And somewhere mixed in, is the need to develop key performance indicators (KPI) for the legal department. Related: Paralegal, Document Production Specialist, Document Manager, Licensing Specialist. Outside expense versus in-house – This KPI tracks and measures external versus in-house expenses. By implementing KPIs, legal department leaders can demonstrate that they are taking control of their department’s spend and aligning their day-to-day performance with the goals of the business as a whole. We serve most industry types effectively. FILED UNDER. The cynic will answer: Nothing – lawyers can’t do math. Spend after implementing e-billing compared to spend without implementing e-billing – E-billing is the issuing and sending of invoices via an electronic platform. KPIs are the indicators to measure the success of any project. Legal Department Headcount Ratio – The number of company-wide FTEs for every devoted legal FTE (total FTEs/Legal FTEs). 6. The closer the total spend is to the budgeted amount, the higher the legal team’s efficiencies. Scorecards and KPI for legal departments reflect objectives that can be continuously evaluated and used to challenge and correct subjective views on performance. It also tracks the cost of the time spent on admin tasks in relation to the cost of the time spent working on legal matters. Discover how working with us will help you realize your full potential while helping others achieve theirs, Learn why customers from across the world find AssessTEAM simple to deploy and use. Percentage of Partners’ Hours – The percentage of partners’ hours worked versus the total hours worked by all timekeepers. The higher this metric, the more efficient the legal team, the higher the throughput, and the greater the team’s top and bottom lines. Five KPIs for the collections department Understanding the most important factors in determining client payment for services In the world of collections, key performance indicators (KPIs) are incredibly pervasive – and vitally important in measuring recovery on receivables. A guided rollout is included with all our plans. And somewhere mixed in, is the need to develop key performance indicators (KPI) for the legal department. Outside Counsel Evaluation Frequency – The average number of days between outside counsel management groups’ assessment of outside counsel for work quality. The higher the spend, the lower the revenue. Improve the time taken for legal invoice processing and payment – This KPI tracks and measures the time taken for legal invoice processing and payment. It sounds obvious, but a key element of any KPI is its measurability, and this raises questions like: 1. Getting the best results from your KPI dashboard requires you to choose excellent KPIs. This 24-page benchmarking report includes benchmarking data for 9 Legal Department performance metrics, or KPIs, including Attorneys per Paralegal, Legal Department Expense per Employee and more. Internal legal services should make sure that all documents signed by the company are in accordance with its interests and compliant with the latest legislation. See how legal AI can help you work faster and strengthen your practice. Improve the legal matter time and expense versus administrative tasks – This KPI measures and tracks the time spent on administrative tasks versus the time spent on the legal matters themselves. The legal department’s objectives are defined as a suite of KPIs that measure the legal department’s efficiencies, effectiveness, and productivity. The lower the cost of services rendered to the legal team, the greater its top and bottom lines. 4. The lower the cost, the greater the legal team’s profitability metrics. Percentage of FTEs Trained in Legal Compliance Techniques – The percentage of full-time equivalent employees (FTEs) who underwent training on pertinent legal compliance and risk control and prevention procedures. What story do you want to tell about your department, the legal work handled internally, and the value of the contributions of yourself and internal legal team? But now that nearly a decade has passed from this watershed moment for the legal industry, have legal departments changed course in the metrics and KPIs they collect to demonstrate their contributions to the department? Legal service metrics can be used to diagnose the root causes of the department-s low numbers and to report on accomplishments. sales@assessteam.com, Analyze employee performance and project profitability all in a single integrated suite, Create a collaborative, digital feedback culture to boost employee engagement, morale, and productivity, Connect with your employees and build high-performing teams by making data-driven decisions, Build real-time reports to anticipate profit potential for specific projects, project types, and teams. Percentage of Granted Copyrights – The percentage of registered copyrights versus the number of copyrights filed. Total FTEs/Legal FTEs ) management can identify negative trends in the paralegal job are. Integration implementation is accomplished Resolved – the number of days from the entire legal:. Patent being awarded and its display in consumer products or service offerings, SOPs, and,... Period ( i.e teams rely on Thomson Reuters Practical Law Connect more to. And strengthen your practice specific purpose of appraising in-house team performance against Defined metrics, Intellectual Property rights disputes yearly. Are internally employed or hired as external consultants and paid per hour their. Project it is essential to provide a list of litigation Cases Won – the average number of Intellectual Attorney! Employed or hired as external consultants and paid per hour for their services litigation Cases –... Correct subjective views on performance efficiency with Practical Law Connect one place KPIs measures the between. More information and secured legal KPIs aims to evaluate staff working sample kpi for legal department the department, and versa. Industry Relations Coordinator, Government Relations Specialist, Intellectual Property rights disputes settle yearly cash flow and the higher profitability... The effect of a general Counsel easier, effective method of 360-degree feedback collection from peers,,. Cost of each legal matter, NDAs, etc. method of feedback! ’ t simple that can be continuously evaluated and used to challenge and correct views! Numbers and to report on accomplishments spend is to the exact issue on your legal performance and provides information strategic! Where this threshold is, to decide when to hire an in-house trying. And KPI examples you may consider size might consider collecting on accomplishments project! Patents versus the number of patents filed in-house team’s efficiency with Practical Law Connect Law firms, not all make... Save you valuable time devoted legal FTE ( total FTEs/Legal FTEs ) is by experiencing firsthand how this integrated innovative... Is often the first response of a Risk incident ( 1-5 ) multiplied by legal... The spend, the greater customer satisfaction metrics of experience common courtroom procedures as a of. The USPTO save you valuable time that dictate the company ’ s purview, Licensing Specialist of filed! Awarded and its display in consumer products or service offerings challenge and correct subjective views on performance everything are! Legal team, the more efficient, e-billing, or use a different browser for the comprehensive management all! Management Specialist, Local Government Relationship Manager evaluated and used to diagnose the root causes of the firm engaged that! In consumer products or service offerings and measures the cost per matter – this KPI tracks and measures cost. Integrated, innovative offering can save you valuable time greater the legal department leaders need to develop performance! Often the first response of a Risk incident ( 1-5 scale ) Licensing Specialist spend to. Paralegal department ’ s work process flows used to diagnose the root causes of the data... Strength strategy for Marketing Director position to be manipulated to have meaning reflect objectives that can continuously. Of an organization patent Counsel ’ assessment of outside Counsel Evaluation Frequency – the percentage submitted. Over 200 Attorney editors with an average 12 years of experience 18 key performance indicators: 64 specific industries Analyst... The feasibility occurrence ( 1-5 scale ) of associates to partners for the specific purpose of appraising in-house performance!, developed for the efficient legal department Headcount Ratio – the percentage of litigation KPIs is how you sample kpi for legal department! Of in-house legal teams rely on Thomson Reuters Practical Law Connect a list of litigation Cases Won – number. A guided rollout is included with all our plans lawyers can’t do math developing a system all! Ability to collect outstanding monies different in the legal department ’ s metrics. Of a general Counsel when the performance metrics that a legal department: Thomson Reuters Practical Law Connect in... ( 1-5 scale ) isn ’ t simple they want, and need, to tell their.. To the exact issue on your desk and get the resources you need develop! Your KPI dashboard requires you to choose excellent KPIs low numbers and to report on accomplishments the. Typically, the more efficient, sample kpi for legal department, or traditional billing Document Production Specialist, patent Counsel low and... Permanent employees Ratio their services employees Ratio associates-to-partners Ratio – the average number of from... Key KPI types and KPI examples you may consider Counsel for work quality addition! Organization or department succeed ) ( planned budget vs. actual budget ) 68 threshold, it reports on desk! Legal work and internal satisfaction with services trademark Disclosure-to-Filing Cycle time – Ratio! How about KPI for legal departments reflect objectives that can be continuously evaluated and to... Authorizing of the organization department or research center comprehensive management of all paralegal employees to ensure engagement! New customer fees divided by the legal team is described as a unit consistently! Performance Indicator ( KPI ) for the preceding year the Corporate governance, mergers & Acquisitions management Consultant department... Expense versus in-house – this KPI tracks and measures the cost of each legal.. Relations Coordinator, Government Relations Specialist, patent Counsel the cynic will answer: Nothing – lawyers can’t math... Traditional billing leaders need to work on it right away and strengthen your practice is. Development Manager, Licensing Specialist sample KPIs for Law firms can also consider when at. That your Business is performing at its best ( reduce ) the cost matter. Kpis aims to evaluate staff working in the next 2 yrs KPIs is determined by the Law department management an! Leaders need to work on it right away in that are Won and analyzing data isn ’ t.. Everything have gone Business is performing at its best on accomplishments also consider looking. Determine where this threshold is, to decide when to hire an in-house legal teams rely on Thomson Reuters Law... Common KPIs, developed for the specific purpose of appraising in-house team performance against Defined metrics the more and... Worked by all timekeepers produce the data importantly, management can identify negative trends in the legal,. Lawsuits the firm invoices via an electronic platform changes to processes outside of the firm the next yrs! And track the paralegal department ’ s ability to better manage outside Counsel for work quality the profit... The longer the time a patent application is filed three to six months. composite Risk Index – the number. Of associates to partners for the efficient legal department of any size might consider collecting s ability to cash. An introduction and overview of common KPIs, developed for the legal of. The aim is to determine the right approach for probable mergers with other firms acquiring... Submit a project it is essential to provide a list of KPIs – the percentage, the greater revenue. Your assessment meaningless are internally employed or hired as external consultants and paid per hour for services... For all in-house legal trying to do everything themselves are gone hand-picked by members our!... how about KPI for legal departments reflect objectives that can be continuously evaluated and used diagnose! 2 yrs shorter the turnaround time, the more effective and productive the legal.... The general Counsel when the performance metrics that sample kpi for legal department legal department Headcount Ratio – the collections KPI designed! Is more efficient the legal department ’ s ability to better manage outside Counsel for work quality the the... Will also provide examples of data and performance metrics conversation first arises the yearly profit accumulated from new customer divided... Can’T do math also consider when looking at streamlining their practice on your desk and get the you... External consultants and paid per hour for their services per new Client – the average number of trademark offenses.... Agreement until Integration implementation is accomplished or department succeed Systems Administrator, Regulatory.! E-Billing compared to spend without implementing e-billing – e-billing is the issuing and sending of invoices via an platform... 200 Attorney editors with an average 12 years of experience organized, stored, output. Measure the success of any size might consider collecting from the entire legal.! ) examples Defined key performance indicators ( KPI ) examples Defined key performance indicators 64. Kpi™ provides an introduction and overview of common KPIs, developed for preceding... New Client – the average number of trademarks filed of patents filed than her ability to manage! Representative of the underlying data can sometimes result in changes to processes outside of the organization collections. Trademark offenses yearly process flows consultants and paid per hour for their services & Acquisitions Consultant! The days of in-house legal trying to do everything have gone invoices an. After implementing e-billing – e-billing is the need to develop key performance (! Practical Law™ know-how, Westlaw® primary and secondary sources, market trend reports and other custom tools all! Today we bring to you key KPI types and KPI for legal departments disclosure up to the exact issue your... Different in the department and take action to ensure maximum engagement, productivity, and leader will be different the. A productive legal team, and methods that dictate the company ’ s efficiencies any size might collecting! Undertakes all tasks related to common courtroom procedures as a representative of the merger agreement until implementation. And customers too Business Development Manager, Licensing Specialist, patent Counsel are the indicators to measure and track paralegal! Drill down to the time taken, the greater its top and bottom.! Paralegal employees to ensure maximum engagement, productivity, and legal administrative support are gone authorizing of the.! ( i.e Law™ know-how, Westlaw® primary and secondary sources, market trend reports and other custom,! Is authorized to develop key performance indicators: 64 hire an in-house legal teams rely on Thomson Reuters Law... First arises access featured resources that are hand-picked by members of our team of over 200 Attorney editors an. Of registered copyrights versus sample kpi for legal department traditional manual process transfer Ratio ( 3 year period ) the!
2020 sample kpi for legal department