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FINANCIAL MANAGEMENT
Where Do You Sit?
You should be able to identify your current standing under one of the
categories depicted in the following diagram.
While law departments generally fall under the "what you know
you don't know" category, many are rapidly moving into "what you
know you know." This means they have mostly defined what needs to be
measured and are now exploring how to tap into the data goldmine and
begin analysis. Some law departments are still struggling to define what
they don't know; however, collaboration groups like the Corporate Legal
Operations Consortium (CLOC) are addressing this problem by rapidly
devising and sharing industry standards and knowledge around legal
operations.
Can We See What They See? A Preview of Law Department Analytics Tools and Metrics
» Resourcing: Measuring who does what work (internal and
external) based on type and complexity of the maer or legal task
» Spend: Measuring how much money is spent by total maer and
by task
» Quality/Satisfaction: Measuring satisfaction of how overall
services were performed and in-house counsel's satisfaction of
outside counsel performance
» Results: Measuring value contributed to the business, in terms of
revenue opportunity generated, level of deterred risk or overall
saved legal costs
What you know
you know
(Centralized & Clean)
What you know
you don't know
(Centralized & Not Clean)
What you don't know
you don't know
(Not Clean & Not Centralized)
What you don't know
you know
(Clean, & Not Centralized)
Law firms need
to know what
information their
clients are gathering
on them and
understand their
competitive standing
among their peers.
