This KPI allows management to determine where this threshold is, to decide when to hire an in-house legal team. Quickly drill down to the exact issue on your desk and get the resources you need to work on it right away. Expert HR advice is available to all customers free of charge. The lower the cost, the greater the lawyer’s efficiency, productivity, and throughput, and the greater the company’s top and bottom lines. You can influence how efficient your legal department is by experiencing firsthand how this integrated, innovative offering can save you valuable time. The higher this metric, the more effective and productive the legal team. The longer the time taken, the less efficient the legal team, and vice versa. KPI and analysis of the underlying data can sometimes result in changes to processes outside of the legal department’s purview. The legal suite of Key Performance Indicators allows for the comprehensive tracking and management of KPIs for staff working in the legal department of an organization. KPIs for the Efficient Legal Department. How is it created? Here are some reasons why general counsel undertake a metrics initiative: These are some âstorylinesâ to consider when identifying what data to collect and what key metrics to measure. But the best legal practice management software , like Smokeball, can help you achieve the results you want and get the business intelligence to do it. Spend to Budget. This will also greatly assist your finance team and the ability to project cash flows. 2. Cost per Trademark Registered – The expenses on ($US) of registered trademarks prepared in a year divided by the number of registered trademarks. Related: Corporate Litigator, Litigation Support Analyst, Corporate Attorney, Corporate Legal Analyst, General Counsel. KPIs is how you take the pulse of your firm and ensure that your business is performing at its best. Outside expense versus in-house – This KPI tracks and measures external versus in-house expenses. Scorecards and KPI for legal departments reflect objectives that can be continuously evaluated and used to challenge and correct subjective views on performance. Read more about each financial KPI. We serve most industry types effectively. Increase production requirements – The production requirements’ KPI tracks and measures the paralegal department’s ability to remain engaged and productive over time; the higher this metric, the greater the output and the more successful the paralegal department. Percentage of Litigation Cases Won – The percentage of lawsuits the firm engaged in that are won. These paralegals are internally employed or hired as external consultants and paid per hour for their services. What data is needed to support it? This KPI tracks and measures the secondee and consultant versus permanent employees ratio. Earned value (EV) 67. Efficient in-house legal teams rely on Thomson Reuters Practical Law Connect. firstname.lastname@example.org, Analyze employee performance and project profitability all in a single integrated suite, Create a collaborative, digital feedback culture to boost employee engagement, morale, and productivity, Connect with your employees and build high-performing teams by making data-driven decisions, Build real-time reports to anticipate profit potential for specific projects, project types, and teams. Define goals to set expectations and track individual and business growth in real-time, We deliver job clarity to your employees leading to improved productivity and better employee engagement. 4. Average Total Cost of Case (TCC) – The average total expenditure on a litigation case, including legal expenses, settlements, and regulatory costs. This metric, indeed most the metrics on this list, pre-supposes that a more basic … Every company, legal department, and leader will be different in the story they want, and need, to tell. Schedule variance (SV) 69. A guided rollout is included with all our plans. Average Fee per New Client – The yearly profit accumulated from new customer fees divided by the total number of new customers. Percentage of Granted Trademarks – The percentage of registered trademarks versus the number of trademarks filed. An interesting conversation has been circulating with general counsel and throughout legal department leadership circles for almost a decade, and it goes something like this: At an executive leadership meeting, if the Vice President of Sales reports out on the number of widgets sold; and the Vice President of Marketing reports out on the number of clicks and eyes on campaigns to sell such widgets; and the Vice President of Human Resources reports out on the cost of human capital to build, market, and sell such widgets; what performance metrics does the General Counsel share? This … Internal legal services should make sure that all documents signed by the company are in accordance with its interests and compliant with the latest legislation. Matter practice area and which department raised the matter – This KPI measures and tracks the number of practice areas and departments that raised matters and sent them to the legal time. The lower the cost of services rendered to the legal team, the greater its top and bottom lines. In subsequent articles in this series, weâll take a deep dive into metrics and KPIs that touch on: âBut only behemoth legal departments can do this.â. Monitor company health: You must monitor KPIs to monitor the overall health and performance of your organization.It can be useful to measure a few KPIs in the categories of employees, customers, processes and revenue. In-house lawyers versus revenue – The in-house lawyers versus revenue KPI tracks and measures the cost of hiring in-house lawyers versus the legal team’s income. This ongoing series will investigate why legal department leaders must evolve the performance metrics conversation from an exclusive focus on outside counsel and external spend management to a holistic overview that includes the efficiency and effectiveness of in-house staff resources. Read more about our experience in serving specific industries. The key to a more effective legal department: Thomson Reuters Practical Law Connect. How is it accessed? As you can see, defining objectives, gathering and analyzing data isn’t simple. Legal departments do not always lend themselves to neatly setting goals like the business units, i.e., it can be difficult to measure “success” in legal vs. measuring profits and sales or setting key performance indicators (“KPI’s”). Measure progress over time: By monitoring your KPIs like revenue, gross margin and number of employees, you can monitor your progress toward your long-term goals. Legal department leaders need to know the right information to manage the department toward its goals, not just more information. Equally importantly, management can identify negative trends in the department and take action to ensure the optimal functioning of the organization. Improve quality of legal work and internal satisfaction with services. Whether all commercial legal work is conducted in-house or outsourced to a third-party is primarily dependent on the size of the organization. Lawyers traditionally are not good at letting go … How is the data tracked and updated? Legal departments provide important support services for a company by handling legal issues that range from drafting waiver forms for employees to handling lawsuits from angry customers. KPIs For The Modern In-House Commercial Legal Department Published on November 29, 2018 November 29, 2018 • 32 Likes • 3 Comments Delay in approvals. This series will provide practical tools and guidance that will resonate with those departments just starting to measure key performance indicators as well as sophisticated departments who have legal department operations professionals focused entirely on metrics. Percentage of Partners’ Hours – The percentage of partners’ hours worked versus the total hours worked by all timekeepers. The government or legislative affairs office is in charge of the maintaining relationships with major local, state, and federal government authorities and trade associations. You can influence how efficient your legal department is by experiencing firsthand how this integrated, innovative offering … Ted Jackson. Browse Practical Lawâ¢ know-how, WestlawÂ® primary and secondary sources, market trend reports and other custom tools, all in one place. Done right, implementing KPI in the legal department can show value, change behavior , identify needs and track trends, all of which can have a positive, long-term impact on the effectiveness of the legal department. 9. Examples of project management key performance indicators: 64. To submit a project it is essential to provide a list of KPIs. By implementing KPIs, legal department leaders can demonstrate that they are taking control of their department’s spend and aligning their day-to-day performance with the goals of the business as a whole. When putting KPIs in place for the legal department, it’s better to identify a smaller number of KPIs to reflect what matters most to the legal department. Small businesses benefit from outsourcing specialist functions. This series of articles will also provide examples of data and performance metrics that a legal department of any size might consider collecting. Auditing a sample of executed contracts every three to six months." ... All articles about measuring performance in Legal. With many legal departments, this occurs automatically because all … 8. Cost performance index (CPI) 71. Improve the billing narratives – The billing narratives KPI is designed to measure and track how accurate, consistent, and compliant all billing descriptions are with predefined company billing standards. Related: Mergers & Acquisitions Director, Business Development Manager, Deals Analytics Associate, Mergers & Acquisitions Management Consultant. An easier, effective method of 360-degree feedback collection from peers, upward, downward and customers too. IP Conflicts Resolved – The number of intellectual property rights disputes settle yearly. Improve the total cost of services (inside and outside) – This KPI tracks and measures the total cost of services, both internal and external. Read more about each financial KPI. GLS Legal Dept. Strategic Planning Reporting Results Balanced Scorecard . KPI #3 Enable self-help The days of in-house legal trying to do everything have gone. 10 Step KPI … Legal department leaders need to know the right information to manage the department toward its goals, not just more information. Auditing a sample of executed contracts every three to six months. Co-Founder & Alabama Native . Scorecards and KPI for legal departments reflect objectives that can be continuously evaluated and used to challenge and correct subjective views on performance. The following are sample KPIs for legal departments that law firms can also consider when looking at streamlining their practice. Take a look at 18 defined examples. A productive legal team is described as a unit that consistently meets expectations, implements successful cost … The cynic will answer: Nothing â lawyers canât do math. Examples of KPIs for legal department: The size of in-house legal team compared to industry averages They are driven in part by the size of the department and the nature of the legal matters it handles, including repetitive nature, magnitude, availability of external benchmarks, sophistication of internal … The intellectual property team safeguards the firms’ non-physical properties like trade secrets, company taglines and logos (trademarks), innovations (patents), printed materials, and documents (copyright). Launching a legal department client satisfaction survey. Getting the best results from your KPI dashboard requires you to choose excellent KPIs. Outside Counsel Fees as a percentage of Total Legal Expense – The percentage of the amount ($US) consumed on outside legal counsel versus the total legal costs sustained by the firm. This set of KPIs allows for the comprehensive management of all paralegal employees to ensure maximum engagement, productivity, and output. Simply send us your job descriptions and we will set up your evaluations. But regardless of a departmentâs objectives, data and performance metrics can be a powerful tool to convey that story and serve as a catalyst for change. The higher the spend, the lower the revenue. KPIs are the indicators to measure the success of any project. KPIs allow you to know the performance of your department or organization. 6. Introducing the most intelligent legal research service ever. Co-Founder & Alabama Native . Five KPIs for the collections department Understanding the most important factors in determining client payment for services In the world of collections, key performance indicators (KPIs) are incredibly pervasive – and vitally important in measuring recovery on receivables. Copyright Disclosure-to-Filing Cycle Time – The average number of days from disclosure up to the time copyright is filed. As you can see, defining objectives, gathering and analyzing data isn’t simple. Findings from the 10th anniversary report of the Law Department Operations Survey revealed the differences in the top key performance indicators today versus 10 years ago, mainly regarding legal departments’ emerging comfort, use of alternative legal service providers and tripling of “total outside counsel and service-provider spend” as KPIs. Gant Sowinski, Associate General Counsel with Michelin North America, talks with us about his experience defining Key Performance Indicators for … 18 Key Performance Indicator (KPI) Examples Defined Key performance indicators can help your organization or department succeed. Efficient in-house legal teams rely on Thomson Reuters Practical Law Connect. The legal department’s objectives are defined as a suite of KPIs that measure the legal department’s efficiencies, effectiveness, and productivity. Legal service metrics can be used to diagnose the root causes of the department-s low numbers and to report on accomplishments. Earned value (EV) 67. The litigation management team undertakes all tasks related to common courtroom procedures as a representative of the firm. But many thoughtful, progressive legal departments are overcoming a perceived fear of numbers and attempting to respond with meaningful metrics and KPIs (Key Performance Indicators). Discover how working with us will help you realize your full potential while helping others achieve theirs, Learn why customers from across the world find AssessTEAM simple to deploy and use. Cost variance (CV) (planned budget vs. actual budget) 68. This KPIs measures the ratio between the e-billing process versus the traditional manual process. ... How about KPI for research department or research center ? The following are sample KPIs for legal departments that law firms can also consider when looking at streamlining their practice. Average Time to Product – The average number of days between a patent being awarded and its display in consumer products or service offerings. Composite Risk Index – The effect of a risk incident (1-5) multiplied by the feasibility occurrence (1-5 scale). The more efficient the department, the greater the legal firm’s cash flow and the higher the profitability metrics. Improve (reduce) the cost per matter – This KPI tracks and measures the cost of each legal matter. ... One can assign values and numbers to the KPIs (Key Performance Indicators) and make sure that statistics remain within the 'manageable range'. Improve deadline compliance – The deadline compliance KPI tracks and measures how many matters meet the compliance deadline in relation to the total number of matters the legal team is dealing with at any given moment. It also tracks the cost of the time spent on admin tasks in relation to the cost of the time spent working on legal matters. Like KPIs for law firms, not all KPI make sense for all in-house legal departments. Use resources efficiently. Real-time KPI management and tracking ensure that the Compliance Executive can ensure that employees meet the stated Key Performance Indicators as set out by the organization. And somewhere mixed in, is the need to develop key performance indicators (KPI) for the legal department. Percentage of Granted Patents – The percentage of awarded patents versus the number of patents filed. Percentage of FTEs Trained in Legal Compliance Techniques – The percentage of full-time equivalent employees (FTEs) who underwent training on pertinent legal compliance and risk control and prevention procedures. They are driven in part by the size of the department and the nature of the legal matters it handles, including repetitive nature, magnitude, availability of external benchmarks, … 3. Who creates this data? Pre-Discovery Resolution Rate – The percentage of litigation cases that are cleared before the discovery period (i.e. Real-time legal KPI project management is crucial for organizational success as the legal team needs to manage core competencies like the creation and supervision of contracts and memorandums of understanding between different organizations, litigation management and counsel, corporate governance, the oversight of the mergers and acquisition process, and the registration of patents. Improve the time taken for legal invoice processing and payment – This KPI tracks and measures the time taken for legal invoice processing and payment. The key to a more effective legal department: Thomson Reuters Practical Law Connect. What story do you want to tell about your department, the legal work handled internally, and the value of the contributions of yourself and internal legal team? Improve collections – The collections KPI is designed to measure and track the paralegal department’s ability to collect outstanding monies. The first step here might be to seek out a conversation with the CEO or other organizational leaders who have an opinion on what performance might be collected. The originating firm still employs the secondee. Schedule variance (SV) 69. Legal spend by business unit. When putting KPIs in place for the legal department, it’s better to identify a smaller number of KPIs to reflect what matters most to the legal department. The paralegal job objectives are designed to track and measure the employees’ job efficiencies in the paralegal department. Examples of KRAs for legal department include the following: Improve timeliness of response for help. But now that nearly a decade has passed from this watershed moment for the legal industry, have legal departments changed course in the metrics and KPIs they collect to demonstrate their contributions to the department? These KPIs are aimed to improve core competencies like corporate governance, mergers and acquisition process, litigation management, and legal administrative support. 18 Key Performance Indicator (KPI) Examples Defined Key performance indicators can help your organization or department succeed. Businesses are too complex, too dispersed, too fast for every piece of paper with legal implications to pass over the in-house lawyer’s desk. DSO is the number of days it takes a customer to pay after an invoice has been generated or a sale has been made.One of the most commonly used metrics, DSO is used to calculate how long, on average, it takes to collect from debtors. What more can the general counsel celebrate other than her ability to better manage outside counsel? Please update to the latest version, or use a different browser for the best experience. Findings from the 10th anniversary report of the Law Department Operations Survey revealed the differences in the top key performance indicators today versus 10 years ago, mainly regarding legal departments’ emerging comfort, use of alternative legal service providers and tripling of “total outside counsel and service-provider spend” as KPIs. KPI™ provides an introduction and overview of common KPIs, developed for the specific purpose of appraising in-house team performance against defined metrics. Legal KPIs aims to evaluate staff working in the legal department of an organization. Part 1 of 3: Measuring what matters: Gathering data on your legal department, Part 2 of 3: Measuring what matters: The efficient legal department structure, Part 3 of 3: What have you done for me lately? Outside Counsel Evaluation Frequency – The average number of days between outside counsel management groups’ assessment of outside counsel for work quality. Take a look at 18 defined examples. A productive legal team is described as a unit that consistently meets expectations, implements successful cost efficiencies, and keeps customers happy and satisfied. 2016 Thomson Reuters In-Sourcing and Efficiency Report. Like KPIs for law firms, not all KPI make sense for all in-house legal departments. Businesses are too complex, too dispersed, and too fast for every piece of paper with legal implications to pass over the in-house lawyer’s desk. This tool provides an understanding of the benefit of each KPI, including examples of where and how to use, how to measure and the reporting frequency. But the best legal practice management software , like Smokeball, can help you achieve the results you want and get the business intelligence to do it. Create bench strength strategy for Marketing Director position to be achieved in the next 2 yrs. Cost performance index (CPI) 71. Done right, implementing KPI in the legal department can show value, change behavior , identify needs and track trends, all of which can have a positive, long-term impact on the effectiveness of the legal department. Immediately after the Global Financial Crisis, when all eyes â across all organizational departments â were on expense management, the general counsel often reported exclusively on outside counsel and external spend management; as a cost center within an organization that historically had not exercised budget management, this immediate reaction made sense. The ultimate objective of the legal department-s metrics program is to identify and implement strategic goals that would deliver expert legal services to support an organization-s growth and risk management. Strategic Planning Reporting Results Balanced Scorecard . Number of law firm secondees and/or contractors vs permanent staff – A secondee is an employee that is seconded to a host company from an originating company. are generated, distributed, organized, stored, and secured. These indicators come in multiple types, and getting it wrong could render your assessment meaningless. Improve the legal spend as a percentage of revenue – The legal spend as a percentage of revenue KPI tracks and measures the ratio between the legal spend and overall revenue. Schedule performance index (SPI) 70. Sector KPIs in this area will be: Prospective fees per service line and the firm as a whole; An indication of conversion rates on those prospective clients; Good data on the number of file openings; The average value of each file opened in each department. See how legal AI can help you work faster and strengthen your practice. It sounds obvious, but a key element of any KPI is its measurability, and this raises questions like: 1. Percentage of Granted Copyrights – The percentage of registered copyrights versus the number of copyrights filed. However, today we bring to you key KPI types and KPI examples you may consider. email@example.com In addition to reaching out to stakeholders, consider feedback and inputs from the entire legal department team. The lower the cost, the greater the legal team’s profitability metrics. Spend after implementing e-billing compared to spend without implementing e-billing – E-billing is the issuing and sending of invoices via an electronic platform. And somewhere mixed in, is the need to develop key performance indicators (KPI) for the legal department. The ultimate objective of the legal department-s metrics program is to identify and implement strategic goals that would deliver expert legal services to support an organization-s growth and risk management. The closer the total spend is to the budgeted amount, the higher the legal team’s efficiencies. For your senior management, it reports on your legal performance and provides information for strategic decisions. Practical Law Connect brings together the legal resources you need to advise, negotiate, and structure your business dealings â all from a single solution. before testimonies and interrogations). Maximize your in-house teamâs efficiency with Practical Law Connect. But before undertaking any data collection, the objectives for putting a data initiative in place or measuring against KPIs should be well documented and considered. How much effort is required to produce the data? Legal Department Headcount Ratio – The number of company-wide FTEs for every devoted legal FTE (total FTEs/Legal FTEs). Improve the pre-bills turnaround time – This KPI tracks and measures the time it takes to compile a draft invoice, send it for approval and finalization, and then send it to the client for payment. While the first KPI evaluates the time it takes to get a contract from start to … FILED UNDER. 9am – 5:00pm EST This 24-page benchmarking report includes benchmarking data for 9 Legal Department performance metrics, or KPIs, including Attorneys per Paralegal, Legal Department Expense per Employee and more. The key to a more effective legal department: Thomson Reuters Practical Law Connect. The legal department’s objectives are defined as a suite of KPIs that measure the legal department’s efficiencies, effectiveness, and productivity. The KPI software developed by Legal Suite allows users to monitor and report on the major series of key indicators for measuring legal performance and service quality. Attorneys per Legal Admin FTE – The number of lawyers employed by the firm, per legal administrative FTE (paralegal, assistant, document control professional, etc.). The corporate governance team is authorized to develop a set of policies, SOPs, and methods that dictate the company’s actions. Typically, the list of litigation KPIs is determined by the law department management. The higher the number of paralegals to lawyers, the more efficient the lawyer’s work process flows. Patent Disclosure-to-Filing Cycle Time – The average number of days from disclosure up to the time a patent application is filed. The higher the billing narrative consistency, the fewer client-queries, the greater customer satisfaction metrics. 7. Legal service metrics can be used to diagnose the root causes of the department-s low numbers and to report on accomplishments. +1 (970) 579-0900 Improve the legal matter time and expense versus administrative tasks – This KPI measures and tracks the time spent on administrative tasks versus the time spent on the legal matters themselves. FILED UNDER. Cost variance (CV) (planned budget vs. actual budget) 68. Increase staffing (internal) or billing (external) of paralegals to lawyers – This KPI measures the number of paralegals in relation to the number of attorneys. Related: Industry Relations Coordinator, Government Relations Specialist, Local Government Relationship Manager. Transfer Ratio (3 year period) – The percentage of submitted patent requests that are awarded by the USPTO. A striking example of the power of legal matter data was the experience of KONE elevators, a worldwide leader in escalators, elevators and moving walkways. Related: Governance Analyst, Corporate Attorney, Corporate Counsel, Legal Systems Administrator, Regulatory Analyst. Just as the problems and needs outlined above are not unique to large legal departments, neither is the use of data to demonstrate the value of a legal department, regardless of size. How does it need to be manipulated to have meaning? Often, despite good intentions and a sound data collection process, many legal departments find themselves asking, âNow what?â Accordingly, this series will also share examples of process improvements or other changes a department might consider to achieve greater department efficiencies.