Legal services scorecards and KPIs reflect goals that can be continuously evaluated and used to challenge and correct subjective views of performance. Below are examples of KPIs for legal services that law firms can also consider if they want to streamline their practice. Once you have a thorough understanding of what will affect your KPIs in the legal department, it`s important that you create KPIs that are achievable, measurable, and linked to the desired outcomes. To do this, it is best to consider the following questions: This is the actual dashboard of legal performance counters and performance counters. Performance indicators include: legal department, litigation issues, active litigation, new litigation, closed litigation, cycle time, non-litigation, non-contentious active issues, new non-contentious issues, closed non-contentious issues, closed non-contentious issues, external legal fees, total fees for external consultants, total fees for legal research, compliance, Ethics Line and Helpline Calls, cycle time for helpline reports, Code of Conduct/Ethics, overhead, legal fees, temporary labor costs, intellectual property issues, active intellectual property issues, new intellectual property issues, closed intellectual property issues. In-house lawyers are often among the coolest and brightest minds in the industry – and it`s important that their wisdom and economic judgment are reflected in the projects, initiatives, and processes that make things happen. The company wants Legal to add value – we know that because we asked them. 6. Process Management. After the contract is drafted, the second most important function of a legal department is to manage (and prevent) disputes, perhaps the biggest waste of time and money that most companies face.
Unfortunately, it is difficult to develop a KPI to measure process management. What seems to work best are several measures under the umbrella of process management. These are: 3. Budget vs. Actual Expenditures. This is a fairly central KPI as it shows where the legal department stands in terms of spending targets, i.e. where actual spending is compared to budgeted spending. This should be continued on two dimensions – since the beginning of the year (total expenditure on YTD in relation to the YTD budget) and for the last month, such as actual expenditures in June compared to the Budget or forecast in June.
Ideally, you will also follow the nature of the case, such as disputes, contracts, company secretary, intellectual property, etc. The average hourly rate of external law firms (especially if you aim to reduce that number) and how the department is pursuing compared to other savings initiatives you have are also interesting. 10. Customer Satisfaction. One of the most important things a general counsel needs to know is the company`s satisfaction with the legal department. While anecdotal information is useful, the best way to understand it is to conduct a customer satisfaction survey in the legal department, which measures satisfaction across a number of specific elements and generates an „overall“ satisfaction score. The simplest KPI is a total score. We had an overall satisfaction goal and the goal that 85% of respondents would have the same – or more – satisfaction with the legal department compared to the previous year. You can also ask those participating in the survey to assign a letter („A“ – „D“) to the ministry and aim for a „B“ or better, or whatever makes the most sense for your situation. Although it is mainly sales that boil down to following these figures, it is still useful for legal services to know at what level the judiciary is engaged.
Fusion CPA can give you a clear idea of your current situation and set a course for the future by implementing personalized scorecards All aspects important to court performance can be summarized in this scorecard, and the task of providing useful advice for future actions can be obtained from them in a reliable and trustworthy manner. The accuracy and level of satisfaction of the parties involved can be verified. Once you`ve determined what your legal KPIs are, you need to track them. We have the team and know-how to streamline legal KPIs What story would you like to tell about your department, the legal work managed in-house, and the value of the contributions of you and the in-house legal team? In the following articles in this series, we`ll take an in-depth look at the metrics and KPIs that touch on the following: Reducing your legal department`s external expenses is often an important goal for just about any in-house lawyer, and it`s easy to follow in a dashboard. You can go further and categorize expenses based on the risk and complexity of the project. 1. Contractual quantity. Fairly simple measure: How many contracts did the legal department conclude during the measurement period? This can only be a gross figure, or – better – compared to a target set earlier in the year, for example 500 contracts per quarter. I like this measure because I am always convinced that one of the highest and best applications of the legal department is the conclusion of contracts, because contracts are the fat on the runners of the company.
If you want to get more details, you can break down the number of contracts by type, such as trading, NDA, supplier, complex, simple, value or by different types of contracts that your department is working on. 9. Involvement in the legal department. When it came to my team/employees, the only number I was really interested in was their employee engagement score. This is something that most companies measure at least once a year (sometimes twice a year). Basically, it`s a composite score based on the team`s answers to dozens of questions. The higher the engagement score, the more satisfied people are with their work, the more willing they are to accept discretionary work, praise the company, etc. It`s also a great predictor of employee retention (or in terms of recognizing issues that need attention). After all, it`s a good indicator of how you`re doing as a manager. The good news is that there are many benchmarks/targets available that can be tracked in terms of engagement scores of the national average, the company as a whole, different business units and/or groups of employees, or the previous year`s score from the legal department – making it a fairly simple KPI that can be implemented and tracked.
This is a more subtle point. Lawyers have a great understanding of what they think is their responsibility when it comes to managing risk and supporting the company in legal matters.