MEASURE or PERISH

MEASURE or PERISH

Key Performance

Indicators (KPIs) for Survival

CASH IS KING | LAW FIRMS ARE BUSINESSES

BILLINGS COLLECTED

FIRM EXPENSES &OVERHEAD

FIRM FAILURE

$ $

BEYOND BILLABLE HOURS?

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

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...

NEW KPIs START WITH THE CLIENT

1 Net Promoter Score (%)

2

CLIENT SATISFACTION

Pipeline Conversion Rate (%)

CLIENT DEVELOPMENT

3 Average Work Climate Satisfaction

4

COMPANY CULTURE

Client acquisition- Cost

(CAC))

PIPELINE DEVELOPMENT

5 Days from work to cash.

PRODUCTIVITY

6

Collections by Timekeeper

7INDIVIDUAL PERFORMANCE

Contribution Margin per

Matter)

PROFITABILITY

NEXT STEPS

1 Create a KPI dashboard

2Mine Data, Set

Targets3 Review Results & Take action (JFDI)

@maryjuettenmejuetten@traklight.com