measure or perish: the need for new metrics in the law
TRANSCRIPT
![Page 1: Measure or Perish: The Need for New Metrics in the Law](https://reader035.vdocument.in/reader035/viewer/2022070514/588192dc1a28ab0d358b5d41/html5/thumbnails/1.jpg)
MEASURE or PERISH
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MEASURE or PERISH
Key Performance
Indicators (KPIs) for Survival
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CASH IS KING | LAW FIRMS ARE BUSINESSES
BILLINGS COLLECTED
FIRM EXPENSES &OVERHEAD
FIRM FAILURE
$ $
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BEYOND BILLABLE HOURS?
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Everyone is busy so we’re fine.
It’s too hard to set goals or budgets.
I don’t need to be efficient because I have enough clients.
Technology is not necessary as I am a solo or the only in-house.
We’re a partnership so individual performance is not relevant.
If we have flat fees we do not have to record hours anymore!!!!
QUOTABLE QUOTES
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Focused on supply of billable hours not demand for services by clients.Need to focus on ROI, contribution margin, and client acquisition cost, plus client and firm satisfaction to run a business and stay out of the red.
Traditional KPIs...
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NEW KPIs START WITH THE CLIENT
1 Net Promoter Score (%)
2
CLIENT SATISFACTION
Pipeline Conversion Rate (%)
CLIENT DEVELOPMENT
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3 Average Work Climate Satisfaction
4
COMPANY CULTURE
Client acquisition- Cost
(CAC))
PIPELINE DEVELOPMENT
5 Days from work to cash.
PRODUCTIVITY
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6
Collections by Timekeeper
7INDIVIDUAL PERFORMANCE
Contribution Margin per
Matter)
PROFITABILITY
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NEXT STEPS
1 Create a KPI dashboard
2Mine Data, Set
Targets3 Review Results & Take action (JFDI)