keeping partners informed with key performance...

May 22-25, 2016 Los Angeles Convention Center Los Angeles, California

Keeping Partners Informed with

Key Performance Indicators

Presented by

Jay J. Erdman, CPA

FM10

5/23/2016

11:00 AM - 12:30 PM

The handouts and presentations attached are copyright and trademark

protected and provided for individual use only.

1

Keeping Partners Informed with Key Performance Indicators

Jay ErdmanRippe & Kingston

Serving Law Firms Since 1979

KPI

2016 National ALA, Los AngelesAtlanta / Cleveland / DC / Grand Rapids / Houston / Las Vegas / Madison / Salt Lake City /St. Louis / Wichita

Thank you for inviting me to present!

2

Thank You

2

• First Installation in 1980 – Still a R&K Client

Keating Muething & Klekamp PLL

• We have been an active supporter of the ALA Nationally & Regionally

• Attending National ALA conferences since 1983

• Presented at National ALA conferences

• Presented at Local ALA Chapter events

Our ALA Relationship

3

R&K Law Firm Client users include current and former Executive

Directors that have served as ALA Presidents...

http://www.alanet.org/about/pastpres.aspx

Our ALA Relationship

4

3

Census

5

Size of Firm

• < 10• 11-25• 26-50• 51-99• 100• 250• 500

Note: Size does not really matter.

6

THINK BIG!!!The ever-changing

Legal Marketplace demands it...

4

7

KPI FOCUS

All Additional Revenues or Cost Savings Go Directly to the Bottom Line…

and Directly Increase Partner Profits.

Income + 100 *

+ Salaries

_ Operating Expenses

= Partner Profits + 100 *

8

Law Firm Profitability Formula

5

Operating Expenses_

Salaries+

Partner Profits= + 100 * - 100 *

Income + 100 * - 100 *

Reduction in Income or Increasing Expenses works just the opposite…

9


$17,000,000

$6,000,000

$5,000,000

$6,000,000

For Example:

Revenue

Direct Cost

Indirect Cost

Partner Profits

10


6

Revenue $18,700,000

Direct Cost $6,000,000

Indirect Cost $5,000,000

$7,700,000Partner Profits

A 10% Revenue Increase Equates to

a 28% Increase of Partner Profits

28%

11


12

KPI FOCUSRevenue Enhancements

7

13

• Hours Worked

• Hourly Rate

• Billing Realization

• Timely Collections

• Collection Realization %

• Salary Structure

• Overhead Structure

• Timely Billing

Revenue

Expense

Today’s Focus

Factors that Influence Profitability

Keeping Partners Informed with Key Performance Indicators (KPI)…

• Do Partners want to be informed?

• Is there such a thing as TMI for Partners?

• Choose your battles…

14

Goals

8

Should you use ‘herd mentality’ and do what other Firms are doing?

(Keeping up with the Smiths’, Jones’, and Does’)

15

Goals

KPI Scope...

• Measure against past performance for improvement measurement

• Use them to develop strategy (goals) and then measure against that strategy (goals)

• Provide (some) objective measurement against other entities in your same industry

16

Goals

9

This analysis is going to suggest that you:

• Compare the Firm against itself (history) and strategy (goals/budgets)

• Supplement your Firms’ strategy with industry knowledge

17

Goals

Remember, there is no single ‘magic silver bullet.’

• Various Resources• Price Waterhouse Cooper• Citibank • Etc.

• Comparison Factors• Size of Firm• Specialization

• Area of Law• Clients (Industry, Size)

• Geography

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Goals

10

• Key Performance Indicators – Basic

• Key Performance Indicators – Intermediate

• Key Performance Indicators – Advanced

But...

KPIs are not always a one line percentage statistics, but can also include supplemental reports that require analysis.

Often simplified into a statistic, KPIs can require reporting that needs to be analyzed.

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Today’s Agenda

KPI come in two flavors:

#1 Statistic - expressed as numbers or a percentage that can be compared against a like statistic.

#2 Reporting - requires the user to analyze the elements of the report to reach a conclusion.

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Today’s Agenda

11

21

Today’s Agenda

#3Firm statistics don’t improve unless Individual statistics improve. This presentation will also address methodologies for monitoring individual statistics to enhance Firm statistics.

Therefore... Everyone (grinders, minders, finders) has KPIs to pay attention to.

Basic Intermediate Advanced

Practice Development Practice Development

Resource Management Resource Management Resource Management

Asset Management Asset Management Asset Management

Production Statistics Production Statistics Production Statistics

Financial Statements Financial Statements Financial Reporting

Profitability Analysis

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OverviewB I A

1

2

3

4

5

6

12

23


Practice Developmenta. Opened Files by Area of Law

- Matter- Client

Practice Developmenta. Client Revenue by Yearb. Matter Revenue by Yearc. Cross-selling Reportd. Client/Matter Minding

Resource Managementa. Full Day Accounting

Resource Managementa. Monthly Calendar b. My Time c. Available for Work

Resource Managementa. My Team (budgets comparison)b. Cross-working Report

Asset Managementa. Unbilled Time / Agingb. Unbilled Cost / Agingc. A/R with Aging

Asset Managementa. Credit Limit Reportingb. Asset – Turn and Daysc. New Clients/Matters

Asset Managementa. Operational Statistics Analysis

• With FTE Equivalents

Production Statisticsa. Key Statistics

Production Statisticsa. Utilization / Capacity Analysisb. Rate Assessmentc. Write Off Analysis / Gaps

Production Statisticsa. Operational Statistics Analysis

• With FTE Equivalentsb. Write Off Analysis / Write Up/Down

Reasons

Financial Statementsa. This year vs. last FS

Financial Statementsa. Budgetsb. Profit Plan

Financial Statementsa. Operational Statistics Analysis


Profitability Analysisa. Profitability

B A

1

2

3

4

5

6

I

24

Overview

We have over 30 KPI statistics & reports...way too many.

Choose the ones that are relevant to your Firm and its culture.

“Grow” as time progresses.

13

25


Resource Managementa. Full Day Accounting

B A

1

2

3

4

5

6

I

Concept

a) Full Day Accounting

26

Could this be

missed BILLABLE

time?

Result: ABA studies indicate a Full Day Accounting methodology increases an individual’s billable time by 8-12%.

Full Day Accounting requires the Attorneys to account for the entire day (Billable and Non-billable). Timekeeping is a discipline…Full Day Accounting.


14

27


Asset Managementa. Unbilled Time / Agingb. Unbilled Cost / Agingc. A/R with Aging

B A

1

2

3

4

5

6

I

Concept

a) Unbilled Time


28

Aging Periods that are relevant to your practice

Dollars & Percents Variance

Net Unbilled after

Retainers or Unapplied

Cash

Rippe & Kingston

15

b) Unbilled Cost

29




Net Unbilled after

Retainers or Unapplied

Cash

Rippe & Kingston

c) Accounts Receivable with Aging

30




It might be helpful to separately age the last bucket to see how old the old A/R really is.

Rippe & Kingston

16

31


Production Statisticsa. Key Statistics

B A

1

2

3

4

5

6

I

Concept

Discussion:

Cash vs.

Accrual Reporting

32


Pros & Cons...

17

a) Key Statistics

33


When individual statistics improve, Firm statistics improve.

Rippe & Kingston

Key Statistics Terminology:

YTD Billable Time Hours - the current billable hours (worked and entered) by the working Attorney year to date.

YTD Billable Time $ @ BIM Value - the dollar value of the billable time (worked, entered, and posted) year to date. The current billable hours are extended at the override rate if one exists or an Attorney’s standard rate if an override does not exist.

Average Billable Rate - current billable dollars divided by current billable hours. It is the average billable rate per hour for all time (worked and entered) year to date. This is also referred to as Blended Rate.

YTD Total Time $ Billed - the time dollars billed to Clients on invoices year to date.

YTD Total Cost $ Billed - the cost dollars billed to Clients on invoices year to date.


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18


YTD Total Time and Cost $ Billed - the time dollars and the cost dollars billed to Clients on invoices year to date.

Effective Billed Rate - the effective hourly rate for the time billed on the invoices to Clients. It is arrived at by taking the billed amount divided by the relieved hours for the current invoices sent to Clients. As an example, if a billing memo had 5 hours for a total of $1000 and is billed for $800, this calculation would be an effective rate of $160 per hour.

YTD Write Up/Down Time $ @ BIM Value - the difference between the billed and relieved amounts for the invoices sent to Clients year to date.

YTD Write Up/Down Time $ @ Std Value - the difference between the billed and relieved amounts calculated at the Attorney's standard rate for the invoices sent to Clients year to date.


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Time Realization % @ BIM Value - the billed amount divided by the relieved amount for the invoices sent to Clients.

YTD Write Up/Down Cost $ - difference between the billed costs and relieved costs for the invoices sent to Clients year to date.

YTD Total Time and Cost $ Cash Receipts - the time dollars and the cost dollars received from Clients on invoices year to date.

YTD Acct Rec Adj - Time $ - the amount of Accounts Receivable that was written off for time by the Firm year to date on invoices previously rendered to Clients.

YTD Acct Rec Adj - Cost $ - the amount of Accounts Receivable that was written off for cost by the Firm year to date on invoices previously rendered to Clients.


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19

a) Key Statistics

37


Last 12 months

Last 12 years

Trend Analysis is important.

Key Statistics Rippe & Kingston

38


Financial Statementsa. This year vs. last FS

B A

1

2

3

4

5

6

I

Concept

20

a) This Year vs. Last

39


Percent of Total Income

Variance ($ and %)

25%

8%

11%

1%

5%

7%

7%

.4%

.3%

.3%

3%

20%

7%

8%

1%

5%

4%

6%

1%

.4%

.3%

4%

31%

10%

12%

.3%

7%

8%

9%

1%

.4%

.0%

4%

24%

8%

9%

.04%

5%

6%

6%

1%

.3%

.3%

4%

100% 100% 100% 100%

40


Practice Developmenta. Opened Files by Area of Law

- Matter- Client

B A

1

2

3

4

5

6

I

Concept

21

a) Opened Files by Area of Law (by Year)

41


Rippe & Kingston

...using the Matter Open Date.

a) Opened Files by Area of Law (by Month)

42


Rippe & Kingston


22

a) Opened Files by Client (by Year)

43



Rippe & Kingston

44


Resource Managementa. Monthly Calendar b. My Time c. Available for Work

B A

1

2

3

4

5

6

I

Concept

23

a) Monthly Calendar

45


Time has to be worked to be billed and collected.

Timekeepers should ‘know’ their

expectations and be reminded of them.

Rippe & Kingston

b) My Time

46


Individual Statistics

Annual billable goals are an accumulation of daily billable goals.

Day by Day

Accountability

Budget Actual Trend

‘Picture’

Budget Actual $

Rippe & Kingston

24

c) Available for Work

47


The Available for Work calendar allows timekeepers to proactively enter

available time that can now be assigned as Billable time.

Alternative: Create a Firm non-billable Matter - “Available for Work”Result: Assignments are matched to available resources and billable time increases.

Once an hour is gone…it is gone forever.

Reverses the

dynamics…

Timekeepers

worry about being

fed next week,

instead of Billing

Attorneys

worrying about

the feeding.

Requires

Timekeepers to

think about and

plan their

availability.

Communicates

availability to the

Department Head

48


Asset Managementa. Credit Limit Reportingb. Asset – Turn and Daysc. New Clients/Matters

B A

1

2

3

4

5

6

I

25

a) Credit Limit Reporting

49


Credit Limits

ClientUnbilled

TimeUnbilled

CostAccounts

ReceivableTotals Credit Limit

% of Credit Limit

ABC & Co. 1,000 1,000 500 2500 7,000 36%

B&B Travels 2,500 1,000 0 3500 7,000 50%

Carson, Inc. 6,000 0 700 6,700 7,000 96%

Dyer Bros. 1,000 500 0 1,500 10,000 15%

Ellison & Ellison 500 250 200 950 5,000 19%

Note: Monitor Clients at or above (e.g., 80%) of their limit).

Note: Requiring Originating Attorneys to think about a new Client’s ability to pay by implementing credit limits is a “Best Practice” initiative.

A B C D(A+B+C)

E F(D/E)

b) Asset - Turn

Inventory Turn Calculation

Billing Attorney Annual Billable TimeUnbilled Time

InventoryInventory

Turn

Ashland, Joe $269,000 $82,000 3.3

Baldwin, Bob $337,600 $65,000 5.2

Brown, Ashley $289,400 $51,000 5.7

Barley, Jonathan $377,500 $32,200 11.7

Carlton, Marissa $400,000 $ 63,000 6.3

Totals $1,673,500 $293,200 5.7

50


Note: Monitor by Billing Attorney, Area of Law, and Client

A B C(A/B)

26

b) Asset - Days

Average Days in Inventory

Billing AttorneyUnbilledTime $

Average Daily Billable Time $

Average Days in Inventory

Ashland, Joe $82,000 $1,067 77

Baldwin, Bob $65,000 $1,339 49

Brown, Ashley $51,000 $1,148 44

Barley, Jonathan $32,200 $1,498 22

Carlton, Marissa $ 63,000 $1,587 40

Totals $293,200 $6,641 44

51



A B C(A/B)

B = Annual Billable Dollars / Working Days of Year (i.e., 252)

b) Asset - Turn

Accounts Receivable Turn

Billing Attorney Annual Fees Billed Average A/RA/R Turn

Ashland, Joe $259,950 $92,000 2.8

Baldwin, Bob $338,000 $69,000 4.9

Brown, Ashley $275,400 $52,500 5.3

Barley, Jonathan $357,420 $35,200 10.2

Carlton, Marissa $396,900 $ 70,000 5.7

Totals $1,627,670 $318,700 5.1

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A B C(A/B)

27

Days in Accounts Receivable

Billing Attorney A/RAverage DayFees Billed

Average Days in AR

Ashland, Joe $92,000 $1,032 89.2

Baldwin, Bob $69,000 $1,341 51.4

Brown, Ashley $52,500 $1,093 48.0

Barley, Jonathan $35,200 $1,418 24.8

Carlton, Marissa $ 70,000 $1,575 44.4

Totals $318,700 $6,459 49.3

53



A B C(A/B)

b) Asset - Days

B = Fees Billed/Working Days of Year (i.e., 252)

c) New Clients/Matters

54


Firm Investment / Asset Management

Train New Clients

...Of the new Clients opened in the last 365 days, are they paying timely?

Rippe & Kingston

28

55


Production Statisticsa. Utilization / Capacity Analysisb. Rate Assessmentc. Write Off Analysis / Gaps

B A

1

2

3

4

5

6

I

Utilization / Capacity Analysis:

• From almost the first day practicing law, attorneys focus on utilization. Expressed as a percentage of total available hours to be billed throughout the year, this metric is the first step in determining performance. Most firms function on the basis that there are anywhere from 1,800 to 2,300 billable hours a year. If a lawyer bills 1,700 hours, the utilization rate would range from 94.4 percent to 73.9 percent. (Source: BizAction)

56


29

a) Utilization / Capacity Analysis

57


Capacity Analysis by Working Attorney

Working AttorneyBillable Hours

(YTD)Budget Hours % of Budget

Ashland, Joe 1,422 1,800 79%

Baldwin, Bob 1,742 1,800 97%

Brown, Ashley 2,300 1,800 128%

Barley, Jonathan 2,100 1,800 117%

Carlton, Marissa 1,942 1,800 108%

Totals 9,506 9,000 106%

A B C(A/B)

Capacity

a) Utilization / Capacity Analysis

58


Capacity Analysis by Practice Group

Practice GroupBillable Hours

(YTD)Budget Hours Capacity %

Tax 12,600 15,000 84%

Corporate 13,000 15,000 87%

Litigation 22,000 30,000 73%

Trust 5,100 6,000 85%

Totals 52,700 66,000 80%

A B C(A/B)

Capacity

30

b) Rate Assessment

59


Days elapsed between time entry date and rate start date

Rippe & Kingston

c) Write Off Analysis / Gaps

60


1. Write offs due to

Client rates less

than Firm Standard

rates

2. Write offs in the

billing process for

time

3. Write offs in the

billing process for

cost

4. Write offs due to

A/R adjustments

1

2

4

3

Rippe & Kingston

31

61


Financial Statementsa. Budgetsb. Profit Plan

B A

1

2

3

4

5

6

I

a) Budgets

62


Budget versus Actual

Variance($ and %)

19%

7%

8%

1 %

5%

4%

6%

1%

.4%

.2%

4 %

32

b) Profit Plan

63


Actual Budget

1,000,000 1,000,000 1,000,000 14,579,950 12,289,426 709,476

64


Practice Developmenta. Client Revenue by Yearb. Matter Revenue by Yearc. Cross-selling Reportd. Client/Matter Minding

B A

1

2

3

4

5

6

I

33

a) Client Revenue by Year

65

This year’s revenue by the Client open date


Rippe & Kingston

a) Client Revenue by Year

66


55%

63%

34

b) Matter Revenue by Year

67

This year’s revenue by the Matter open date


Rippe & Kingston

b) Matter Revenue by Year

68


78%

68%

35

69

c) Cross-selling Report

Fee Receipts

Practice Group

Tax Corporate Litigation Trust Totals

$ % $ % $ % $ % $ %

Tax $53,845.23 23.7 % $45,125.98 16.6% $70,425.15 21.1% $22,985.65 21.9% $192,382.01 20.5%

Corporate $85,125.68 37.5% $101,020.67 37.3% $185,325.50 55.6% $38,489.45 36.6% $409,961.30 43.8%

Litigation $29,458.51 13.0% $79,698.25 29.4% $17,258.32 5.2% $18,145.78 17.3% $144,560.86 15.4%

Trust $58,654.28 25.8% $45,215.32 16.8% $60,259.67 18.1% $25,536.83 24.2% $189,666.10 20.3%

Totals $227,083.70 100.0% $271,060.22 100.0% $333,268.64 100.0% $105,157.71 100.0% $936,570.27 100.0%

WorkingAttorney

OriginatingAttorney


d) Client/Matter Minding

70


Last time posted date equals the last contact date.

Clients that have not been contacted in the last 365 days (evidenced by the lack of time entry)...

Rippe & Kingston

36

71


Resource Managementa. My Teamb. Cross-working Report

B A

1

2

3

4

5

6

I

a) My Team

72


When individual statistics improve, Firm statistics improve.

Rippe & Kingston

37

a) My Team

73


Rippe & Kingston

74


b) Cross-working Report

WorkingAttorney

BillingAttorney

Billable Time

Practice Group

Tax Corporate Litigation Trust

$ % $ % $ % $ %

Tax $53,845.23 23.7 % $45,125.98 16.6% $70,425.15 21.1% $22,985.65 21.9%

Corporate $85,125.68 37.5% $121,020.67 44.6% $135,325.50 40.6% $38,489.45 36.6%

Litigation $49,458.51 21.8% $59,698.25 22.0% $67,258.32 20.2% $18,145.78 17.3%

Trust $38,654.28 17.0% $45,215.32 16.8% $60,259.67 18.1% $25,536.83 24.2%

Totals $227,083.70 100.0% $271,060.22 100.0% $333,268.64 100.0% $105,157.71 100.0%

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75


b) Cross-working Report

WorkingAttorney

BillingAttorney

Write Ups/Downs

Practice Group

Tax Corporate Litigation Trust

$Billing

Realization %

$Billing

Realization %

$Billing

Realization %

$Billing

Realization %

Tax $5,800.00 98.2 % $5,525.98 89.6% $1,425.15 89.1% $985.65 90.9%

Corporate $5,130.68 89.5% $1,000.67 92.6% $3,325.50 102.0% $3,469.45 96.6%

Litigation $4,4508.51 101.4% $5,700.25 101.0% $6,255.68 91.2% $1,145.88 101.3%

Trust $3,700.28 95.0% $4,215.32 93.8% $4,200.00 89.1% $2,300.20 99.2%

Totals / Avg $2,500.70 96.0% $2,500.22 94.3% $3,250.64 92.9% $1,100.00 97.0%

76


Asset Managementa. Operational Statistics Analysis


B A

1

2

3

4

5

6

I

39

77


At an Advanced level, FTEs can become important...

Wikipedia defines FTE Equivalents as:

• a unit that indicates the workload of an employed person in a way that makes workloads comparable across various contexts. FTE is often used to measure a worker's involvement in a project, or to track cost reductions in an organization. An FTE of 1.0 means that the person is equivalent to a full-time worker, while an FTE of 0.5 signals that the worker is only half-time. (Wikipedia.org)

Provide comparability between periods as censusstatistics grow or shrink.

78


b) Operational Statistics Analysis• With FTE Equivalents

Operational Statistics

Per Partner Per Attorney Per Timekeeper

Unbilled Time

Unbilled Cost

Account Receivable

40

79


Production Statisticsa. Operational Statistics Analysis

• With FTE Equivalentsb. Write Off Analysis / Write Up/Down

Reasons

B A

1

2

3

4

5

6

I

80


a) Operational Statistics Analysis• FTE Equivalents

Operational Statistics

Gross Fees A. Per Partner B. Per Attorney C. Per Timekeeper

1. Billable Time Hours

2. Billable Time Dollars

3. Leverage

4. Average Billable Rate

5. Billings

6. Average Billed Rate

7. Write Up/Downs

8. Cash Receipts

9. A/R Adjustments

41

81



1. Billable Time Hours – the current billable hours (worked and entered) by the working Attorney.

2. Billable Time Dollars – the dollar value of the billable time (worked, entered, and posted) year to date.

3. Leverage – Non-Partner billable dollars divided by total billable dollars.

4. Average Billable Rate – current billable dollars divided by current billable hours. It is the average billable rate per hour for all time (worked and entered) year to date. This is also referred to as Blended Rate.

5. Billings – the time dollars billed on invoices sent to Clients.

82



5. Average Billed Rate – dollars billed divided by the hours relieved amounts for invoices sent to Clients.

6. Write Up/Downs – the difference between the billed and relieved amounts for the invoices sent to Clients.

7. Cash Receipts – the time dollars and the cost dollars received from Clients on invoices.

8. A/R Adjustments – the amount of Accounts Receivable that was written off for time and cost by the Firm year to date on invoices previously rendered to Clients.

42

83


b) Write Off Analysis / Write Up/Down Reasons

Write Up/Down Reason CodesRippe & Kingston

84


Financial Reportinga. Operational Statistics Analysis


B A

1

2

3

4

5

6

I

43

a) Operational Statistics Analysis• With FTE Equivalents

85


86


44

87


88


45

89


90


46

91


92


47

93


Profitability Analysisa. Profitability

B A

1

2

3

4

5

6

I

Concept

a) Profitability

94


What is it?

An Accounting allocation process, which measures the gross and net contribution to the Firm’s profits of a given revenue stream.

An Accounting analysis, which calculates a series of direct and indirect rates per timekeeper per hour allocated to a defined revenue stream to measure gross and net contribution to Firm profits.

48

a) Profitability

95


A Systematic Approach for Measuring the Profitability of the Firm…

• Identify Revenue

• Identify Direct Costs

• Identify Indirect/Overhead Costs

• Apply Direct and Indirect Cost to Revenue

a) Profitability

96


Why use it?

• All Attorneys Contribute to Profitability

• All Clients Contribute to Profitability

• Create Better Informed Decision Makers

• Cost Structure & Guidelines

• Rate Structure & Guidelines

• Profitability Models

49

a) Profitability

97


Who should use it?

• Law Firm Management

• Executive Committee

• Practice Group Leaders

• Billing Attorneys

a) Profitability

98


Where should it be used?

Measurement of Profitability of Revenue:

• Products (what we produce)• Clients (who buys it)• Attorneys (who sells it)

(who manages it)(who creates it)

50

a) Profitability

99


INCOME STATEMENT

FEE INCOME

PERSONNEL EXPENSES (Direct Cost)

OVERHEAD (Indirect Cost)

NET PROFIT

a) Profitability

100


Firm Per Invoice

Fee Income Revenue

Direct Cost Direct Cost

Indirect Cost Indirect Cost

Net Profit Net Profit

Per Time Entry

Revenue

Direct Cost

Indirect Cost

Net Profit

51

a) Profitability

101


• Client Invoices

• Time Entries

• Working Timekeepers

• Direct Cost

• Indirect/Overhead Cost

• Revenue – Direct Cost = Gross Profit

• Gross Profit – Indirect/OH Cost = Net Profit

Revenue Costing Formula

a) Profitability

102


Identify Direct Costs/Timekeeper

52

a) Profitability

103


Identify/Isolate Direct Expenses

• Salary

• Bonus

• Taxes

• Medical

• Benefits

• Parking

a) Profitability

104


Indirect Costs

Allocation of all Other Firm Expenses

53

a) Profitability

105


Rippe & Kingston

• Firm

• Office

• Department

• Areas of Law

• Client

• Client/Matter

• Originating Attorney

• Billing Attorney

• Responsible Attorney

• Working Attorney

REPORTING RESULTS

106


54

We have over 30 KPI statistics & reports...way too many.

Choose the ones that are relevant to your Firm and its culture.

“Grow” as time progresses.

THANK YOU!

107

Summary Page

108

THINK BIG!!!

Jay Erdman, Principal

[email protected]

513.702.8254

1

Best Practice Initiative:

Key Performance

Indicators

May 2016

2

Synopsis

For a Law Firm to be successful, it must be able to identify and achieve

organizational goals. This session will discuss why we need Key Performance

Indicators, when we should measure them, how often and how to report your

findings in a format management can understand. Attendees will also learn how

to benchmark their Firm's KPI's against industry trends and best practices that

will help them to modify and improve the Firm's performance. The presentation

will specifically address the following topics:

• Identifying which KPI's are critical to track and manage

• Calculating and measuring the Firm's KPI's

• Benchmarking KPI's against industry trends and best practices

• Reporting the Firm's KPI's in a format that attorneys and Firm

management can understand

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Practice Development Practice Development

Resource Management Resource Management Resource Management

Asset Management Asset Management Asset Management

Production Statistics Production Statistics Production Statistics

Financial Statements Financial Statements Financial Reporting

Profitability Analysis

B I A

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Agenda

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Bio

Jay Erdman, CPA, a Principal in Rippe & Kingston, LLC,

consults with a large number of Law Firms across the country

on a range of topics including Partner development and

Financial Management issues. He has spoken at local,

regional, and national ALA and ABA events.

Jay earned his degree in Accounting and Management from

the University of Cincinnati and now has over thirty-five years

of accounting experience and Law Firm specialization.

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