FINANCIAL MANAGEMENT
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Key performance indicators (KPIs) are a dime a dozen these days.
For decades now, and especially aer the economic downturn in 2008,
legal technology experts and law firm management consultants have
been preaching KPIs and reprimanding law firms for not having their
own financial house in order. This again popularized the old business
adage "you must measure to manage" and heightened awareness
among law firm leadership that meaningful KPIs should drive firm
business decisions.
Within the last five years, there has been a shi from internally
focused measurement to understanding and beer communicating
client-facing metrics. By increasing metrics transparency, we can
establish a mutual baseline of measuring what moves the needle and
beer manage client relationships.
Metrics Galore! Where To Focus
KPI dashboards, oen visualized via data from the firm's financial or
practice management systems, have almost become too convenient for
firm management. They can believe that if it's not on their dashboard,
it's not important, which should prompt you to ask the following
questions:
» Do the performance indicators reflect the firm's strategy and goals?
» What makes them key to the firm's success?
» Are they actionable, and can they create a behavioral change?
Full-scale KPI dashboard deployments with a full spectrum of
industry KPIs are pleasing to quantitative analysts, but that does not
affect firm performance in the slightest. An alternative plan would be to:
by Peter Zver of Tikit North America
Law Firm KPIs: Making the Leap
from Inward- to Client-Facing
Law Firm KPIs: Making the Leap from Inward- to Client-Facing
