This KPI allows management to determine where this threshold is, to decide when to hire an in-house legal team. The closer the total spend is to the budgeted amount, the higher the legal team’s efficiencies. The lower the spend, the greater the revenue. 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. Earned value (EV) 67. 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 more efficient the department, the greater the legal firm’s cash flow and the higher the profitability metrics. These indicators come in multiple types, and getting it wrong could render your assessment meaningless. The legal administrative support team is in charge of developing a system where all legal papers (contracts, NDAs, etc.) Patent Disclosure-to-Filing Cycle Time – The average number of days from disclosure up to the time a patent application is filed. Getting the best results from your KPI dashboard requires you to choose excellent KPIs. Actual cost (AC) 66. The following are sample KPIs for legal departments that law firms can also consider when looking at streamlining their practice. Improve (reduce) the cost per matter – This KPI tracks and measures the cost of each legal matter. Schedule variance (SV) 69. Transfer Ratio (3 year period) – The percentage of submitted patent requests that are awarded by the USPTO. 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. Launching a legal department client satisfaction survey. Equally importantly, management can identify negative trends in the department and take action to ensure the optimal functioning of the organization. This will also greatly assist your finance team and the ability to project cash flows. Efficient in-house legal teams rely on Thomson Reuters Practical Law Connect. Improve quality of legal work and internal satisfaction with services. 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. The lower the cost, the greater the lawyer’s efficiency, productivity, and throughput, and the greater the company’s top and bottom lines. For your senior management, it reports on your legal performance and provides information for strategic decisions. Browse Practical Law™ know-how, Westlaw® primary and secondary sources, market trend reports and other custom tools, all in one place. Read more about each financial KPI. 4. Like KPIs for law firms, not all KPI make sense for all in-house legal departments. The higher this metric, the more efficient the legal team, the higher the throughput, and the greater the team’s top and bottom lines. In subsequent articles in this series, we’ll take a deep dive into metrics and KPIs that touch on: “But only behemoth legal departments can do this.”. KPIs are the indicators to measure the success of any project. are generated, distributed, organized, stored, and secured. Maximize your in-house team’s efficiency with Practical Law Connect. The greater the number of issues and the more diverse the number of departments that raised matters, the more effective and efficient the legal team. KPIs For The Modern In-House Commercial Legal Department Published on November 29, 2018 November 29, 2018 • 32 Likes • 3 Comments However, today we bring to you key KPI types and KPI examples you may consider. 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. Legal department leaders need to know the right information to manage the department toward its goals, not just more information. Average Fee per New Client – The yearly profit accumulated from new customer fees divided by the total number of new customers. What more can the general counsel celebrate other than her ability to better manage outside counsel? What data is directly needed for this KPI? KPIs allow you to know the performance of your department or organization. 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. Cost per Trademark Registered – The expenses on ($US) of registered trademarks prepared in a year divided by the number of registered trademarks. support@assessteam.com These paralegals are internally employed or hired as external consultants and paid per hour for their services. KPIs is how you take the pulse of your firm and ensure that your business is performing at its best. KPI and analysis of the underlying data can sometimes result in changes to processes outside of the legal department’s purview. The paralegal job objectives are designed to track and measure the employees’ job efficiencies in the paralegal department. Take a look at 18 defined examples. KPI Dashboards are the perfect tool for your performance tracking reports as they can be used to visually depict the performance of an enterprise, a specific department, or a key business operation. 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. The higher this metric, the more effective and productive the legal team. Pre-Discovery Resolution Rate – The percentage of litigation cases that are cleared before the discovery period (i.e. The aim is to determine which is more efficient, e-billing, or traditional billing. Often, despite good intentions and a sound data collection process, many legal departments find themselves asking, “Now what?” Accordingly, this series will also share examples of process improvements or other changes a department might consider to achieve greater department efficiencies. 3. Who creates this data? 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? 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. 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”). KPI #3 Enable self-help The days of in-house legal trying to do everything have gone. 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. 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. Legal department leaders need to know the right information to manage the department toward its goals, not just more information. While the first KPI evaluates the time it takes to get a contract from start to … Schedule variance (SV) 69. This … 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. 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). As you can see, defining objectives, gathering and analyzing data isn’t simple. Number of Trademark Violations – The number of trademark offenses yearly. And somewhere mixed in, is the need to develop key performance indicators (KPI) for the legal department. 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? 9. To submit a project it is essential to provide a list of KPIs. When a company passes an income-generation threshold, it becomes more cost-effective to employ in-house specialists. The corporate governance team is authorized to develop a set of policies, SOPs, and methods that dictate the company’s actions. Legal KPIs aims to evaluate staff working in the legal department of an organization. The key to a more effective legal department: Thomson Reuters Practical Law Connect. Expert HR advice is available to all customers free of charge. The lower the cost of services rendered to the legal team, the greater its top and bottom lines. Percentage of Granted Copyrights – The percentage of registered copyrights versus the number of copyrights filed. The originating firm still employs the secondee. Access featured resources that are hand-picked by members of our team of over 200 attorney editors with an average 12 years of experience. Increase matters per attorney and/or per paralegal – This KPI tracks and measures the number of cases (or matters) per attorney or paralegal. Create bench strength strategy for Marketing Director position to be achieved in the next 2 yrs. +1 (970) 579-0900 The key to a more effective legal department: Thomson Reuters Practical Law Connect. before testimonies and interrogations). Spend to Budget. Percentage of Litigation Cases Won – The percentage of lawsuits the firm engaged in that are won. Related: Paralegal, Document Production Specialist, Document Manager, Licensing Specialist. 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. 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? 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. 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. Take a look at 18 defined examples. And somewhere mixed in, is the need to develop key performance indicators (KPI) for the legal department. Improve the budget-to-actual spend comparison – The budget-to actual spend comparison KPI compares the amount budgeted versus the actual amount spent per line item on the legal team’s budget. Policy Audit Frequency – The average number of days between firm operations and policies assessments conducted by the legal compliance team. The lower the cost, the greater the legal team’s profitability metrics. 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. 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 Headcount Ratio – The number of company-wide FTEs for every devoted legal FTE (total FTEs/Legal FTEs). The higher the billing narrative consistency, the fewer client-queries, the greater customer satisfaction metrics. Auditing a sample of executed contracts every three to six months." Examples of project management key performance indicators: 64. Efficient in-house legal teams rely on Thomson Reuters Practical Law Connect. Copyright Disclosure-to-Filing Cycle Time – The average number of days from disclosure up to the time copyright is filed. The key to a more effective legal department: Thomson Reuters Practical Law Connect. Typically, the list of litigation KPIs is determined by the law department management. 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. Scorecards and KPI for legal departments reflect objectives that can be continuously evaluated and used to challenge and correct subjective views on performance. 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. How is it accessed? 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. KPI™ provides an introduction and overview of common KPIs, developed for the specific purpose of appraising in-house team performance against defined metrics. 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. Read more about our experience in serving specific industries. A productive legal team is described as a unit that consistently meets expectations, implements successful cost … 6. Improve collections – The collections KPI is designed to measure and track the paralegal department’s ability to collect outstanding monies. 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). FILED UNDER. Composite Risk Index – The effect of a risk incident (1-5) multiplied by the feasibility occurrence (1-5 scale). You can influence how efficient your legal department is by experiencing firsthand how this integrated, innovative offering … Percentage of Partners’ Hours – The percentage of partners’ hours worked versus the total hours worked by all timekeepers. 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. Strategic Planning Reporting Results Balanced Scorecard . Related: Industry Relations Coordinator, Government Relations Specialist, Local Government Relationship Manager. ... One can assign values and numbers to the KPIs (Key Performance Indicators) and make sure that statistics remain within the 'manageable range'. These KPIs are aimed to improve core competencies like corporate governance, mergers and acquisition process, litigation management, and legal administrative support. With many legal departments, this occurs automatically because all … Related: Corporate Litigator, Litigation Support Analyst, Corporate Attorney, Corporate Legal Analyst, General Counsel. Outside expense versus in-house – This KPI tracks and measures external versus in-house expenses. KPIs is how you take the pulse of your firm and ensure that your business is performing at its best. KPI #3: Enable self-help The days of in-house legal trying to do everything themselves are gone. The following are sample KPIs for legal departments that law firms can also consider when looking at streamlining their practice. Improve the total cost of services (inside and outside) – This KPI tracks and measures the total cost of services, both internal and external. GLS Legal Dept. 10 Step KPI … 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. 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. 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. 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. 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. 5. Cost performance index (CPI) 71. 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. Lawyers traditionally are not good at letting go … 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. FILED UNDER. 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. 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, … Scorecards and KPI for legal departments reflect objectives that can be continuously evaluated and used to challenge and correct subjective views on performance. An easier, effective method of 360-degree feedback collection from peers, upward, downward and customers too. Whether all commercial legal work is conducted in-house or outsourced to a third-party is primarily dependent on the size of the organization. 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. ... All articles about measuring performance in Legal. IP Conflicts Resolved – The number of intellectual property rights disputes settle yearly. 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. Increase staffing (internal) or billing (external) of paralegals to lawyers – This KPI measures the number of paralegals in relation to the number of attorneys. As you can see, defining objectives, gathering and analyzing data isn’t simple. But regardless of a department’s objectives, data and performance metrics can be a powerful tool to convey that story and serve as a catalyst for change. sales@assessteam.com, 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. 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. 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. Legal spend by business unit. Auditing a sample of executed contracts every three to six months. Attorneys per Legal Admin FTE – The number of lawyers employed by the firm, per legal administrative FTE (paralegal, assistant, document control professional, etc.). Schedule performance index (SPI) 70. How is the data tracked and updated? increase the percentage of cases solved/resolved successfully – This KPI measures the ratio between the number of cases successfully resolved in relation to the overall number of cases over time. The higher the spend, the lower the revenue. You can influence how efficient your legal department is by experiencing firsthand how this integrated, innovative offering can save you valuable time. The cynic will answer: Nothing – lawyers can’t do math. The legal department’s objectives are defined as a suite of KPIs that measure the legal department’s efficiencies, effectiveness, and productivity. Delay in approvals. Improve the legal matters handled versus revenue – This KPI measures and tracks the time spent on administrative tasks versus the time spent on the legal matters themselves. 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. Small businesses benefit from outsourcing specialist functions. 2016 Thomson Reuters In-Sourcing and Efficiency Report. What data is needed to support it? Average Total Cost of Case (TCC) – The average total expenditure on a litigation case, including legal expenses, settlements, and regulatory costs. Schedule performance index (SPI) 70. 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. Quickly drill down to the exact issue on your desk and get the resources you need to work on it right away. 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. Immediately after the Global Financial Crisis, when all eyes – across all organizational departments – 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 litigation management team undertakes all tasks related to common courtroom procedures as a representative of the firm. How much effort is required to produce the data? Read more about each financial KPI. This is often the first response of a general counsel when the performance metrics conversation first arises. 8. 18 Key Performance Indicator (KPI) Examples Defined Key performance indicators can help your organization or department succeed. 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. 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. Related: Mergers & Acquisitions Director, Business Development Manager, Deals Analytics Associate, Mergers & Acquisitions Management Consultant. This set of KPIs allows for the comprehensive management of all paralegal employees to ensure maximum engagement, productivity, and output. Improve the time taken for legal invoice processing and payment – This KPI tracks and measures the time taken for legal invoice processing and payment. 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. Improve (reduce) the cost per lawyer – The cost per lawyer KPI tracks and measures the cost of retaining an in-house attorney versus the income the attorney generates. This KPIs measures the ratio between the e-billing process versus the traditional manual process. Actual cost (AC) 66. 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. You can influence how efficient your legal department is by experiencing firsthand how this … This metric, indeed most the metrics on this list, pre-supposes that a more basic … This series of articles will also provide examples of data and performance metrics that a legal department of any size might consider collecting. Here are some KPI examples to demonstrate how you can present key performance indicators to your team in dashboards and reports: A productive legal team is described as a unit that consistently meets expectations, implements successful cost efficiencies, and keeps customers happy and satisfied. How is it created? 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. Co-Founder & Alabama Native . 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. 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. Here are some reasons why general counsel undertake a metrics initiative: These are some “storylines” to consider when identifying what data to collect and what key metrics to measure. ... How about KPI for research department or research center ? Earned value (EV) 67. Planned value (PV) 65. 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. 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. Planned value (PV) 65. 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. Cost variance (CV) (planned budget vs. actual budget) 68. This series of articles will also provide examples of data and performance metrics that a legal department of any size might consider collecting. 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. A guided rollout is included with all our plans. Introducing the most intelligent legal research service ever. 18 Key Performance Indicator (KPI) Examples Defined Key performance indicators can help your organization or department succeed. Related: Patent Researcher, Knowledge Management Specialist, Intellectual Property Counsel, Intellectual Property Attorney, Intellectual Property Licensing Specialist, Patent Counsel. Outside Counsel Evaluation Frequency – The average number of days between outside counsel management groups’ assessment of outside counsel for work quality.

sample kpi for legal department

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