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 following are sample KPIs for legal departments that law firms can also consider when looking at streamlining their practice. 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. Copyright Disclosure-to-Filing Cycle Time – The average number of days from disclosure up to the time copyright is filed. 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. These KPIs are aimed to improve core competencies like corporate governance, mergers and acquisition process, litigation management, and legal administrative support. Cost performance index (CPI) 71. This is often the first response of a general counsel when the performance metrics conversation first arises. Legal KPIs aims to evaluate staff working in the legal department of an organization. This KPIs measures the ratio between the e-billing process versus the traditional manual process. 18 Key Performance Indicator (KPI) Examples Defined Key performance indicators can help your organization or department succeed. The higher the percentage, the more efficient and productive the legal team. Outside Counsel Evaluation Frequency – The average number of days between outside counsel management groups’ assessment of outside counsel for work quality. 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. Scorecards and KPI for legal departments reflect objectives that can be continuously evaluated and used to challenge and correct subjective views on performance. Trademark Disclosure-to-Filing Cycle Time – The average number of days from disclosure up to the time a trademark application is filed. 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”). When a company passes an income-generation threshold, it becomes more cost-effective to employ in-house specialists. 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. Improve (reduce) the cost per matter – This KPI tracks and measures the cost of each legal matter. And somewhere mixed in, is the need to develop key performance indicators (KPI) for the legal department. 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. 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. 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. 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. Average Fee per New Client – The yearly profit accumulated from new customer fees divided by the total number of new customers. The higher the spend, the lower the revenue. 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. Like KPIs for law firms, not all KPI make sense for all in-house legal departments. 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. You can influence how efficient your legal department is by experiencing firsthand how this … Strategic Planning Reporting Results Balanced Scorecard . How is it accessed? Legal service metrics can be used to diagnose the root causes of the department-s low numbers and to report on accomplishments. 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. KPI™ provides an introduction and overview of common KPIs, developed for the specific purpose of appraising in-house team performance against defined metrics. are generated, distributed, organized, stored, and secured. We serve most industry types effectively. 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. Average Time to Product – The average number of days between a patent being awarded and its display in consumer products or service offerings. 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? 2. The shorter the turnaround time, the greater the paralegal department’s efficiencies. 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. The higher the billing narrative consistency, the fewer client-queries, the greater customer satisfaction metrics. Getting the best results from your KPI dashboard requires you to choose excellent KPIs. 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). 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. Every company, legal department, and leader will be different in the story they want, and need, to tell. KPIs are the indicators to measure the success of any project. 18 Key Performance Indicator (KPI) Examples Defined Key performance indicators can help your organization or department succeed. Cost variance (CV) (planned budget vs. actual budget) 68. KPIs is how you take the pulse of your firm and ensure that your business is performing at its best. Improve collections – The collections KPI is designed to measure and track the paralegal department’s ability to collect outstanding monies. These indicators come in multiple types, and getting it wrong could render your assessment meaningless. Related: Patent Researcher, Knowledge Management Specialist, Intellectual Property Counsel, Intellectual Property Attorney, Intellectual Property Licensing Specialist, Patent Counsel. Composite Risk Index – The effect of a risk incident (1-5) multiplied by the feasibility occurrence (1-5 scale). 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. Average Total Cost of Case (TCC) – The average total expenditure on a litigation case, including legal expenses, settlements, and regulatory costs. Percentage of Granted Copyrights – The percentage of registered copyrights versus the number of copyrights filed. Legal department leaders need to know the right information to manage the department toward its goals, not just more information. The aim is to determine which is more efficient, e-billing, or traditional billing. While the first KPI evaluates the time it takes to get a contract from start to … Expert HR advice is available to all customers free of charge. Introducing the most intelligent legal research service ever. 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 have gone. As you can see, defining objectives, gathering and analyzing data isn’t simple. Transfer Ratio (3 year period) – The percentage of submitted patent requests that are awarded by the USPTO. 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 following are sample KPIs for legal departments that law firms can also consider when looking at streamlining their practice. Outside expense versus in-house – This KPI tracks and measures external versus in-house expenses. Ted Jackson. 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. Policy Audit Frequency – The average number of days between firm operations and policies assessments conducted by the legal compliance team. 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. The government or legislative affairs office is in charge of the maintaining relationships with major local, state, and federal government authorities and trade associations. How much effort is required to produce the data? Associates-to-Partners Ratio – The ratio of associates to partners for the preceding year. 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. This will also greatly assist your finance team and the ability to project cash flows. As you can see, defining objectives, gathering and analyzing data isn’t simple. An easier, effective method of 360-degree feedback collection from peers, upward, downward and customers too. Related: Mergers & Acquisitions Director, Business Development Manager, Deals Analytics Associate, Mergers & Acquisitions Management Consultant. firstname.lastname@example.org Read more about each financial KPI. KPIs for the Efficient Legal Department. FILED UNDER. Typically, the list of litigation KPIs is determined by the law department management. 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. You can influence how efficient your legal department is by experiencing firsthand how this integrated, innovative offering … ... All articles about measuring performance in Legal. 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. 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. Legal department leaders need to know the right information to manage the department toward its goals, not just more information. Improve quality of legal work and internal satisfaction with services. Take a look at 18 defined examples. This metric, indeed most the metrics on this list, pre-supposes that a more basic … The corporate governance team is authorized to develop a set of policies, SOPs, and methods that dictate the company’s actions. 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. Percentage of Litigation Cases Won – The percentage of lawsuits the firm engaged in that are won. The key to a more effective legal department: Thomson Reuters Practical Law Connect. Examples of project management key performance indicators: 64. The key to a more effective legal department: Thomson Reuters Practical Law Connect. ... One can assign values and numbers to the KPIs (Key Performance Indicators) and make sure that statistics remain within the 'manageable range'. Browse Practical Lawâ¢ know-how, WestlawÂ® primary and secondary sources, market trend reports and other custom tools, all in one place. 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. 5. 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. 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. Pre-Discovery Resolution Rate – The percentage of litigation cases that are cleared before the discovery period (i.e. 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. IP Conflicts Resolved – The number of intellectual property rights disputes settle yearly. A productive legal team is described as a unit that consistently meets expectations, implements successful cost … 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. Here are some KPI examples to demonstrate how you can present key performance indicators to your team in dashboards and reports: The legal department’s objectives are defined as a suite of KPIs that measure the legal department’s efficiencies, effectiveness, and productivity. Patent Disclosure-to-Filing Cycle Time – The average number of days from disclosure up to the time a patent application is filed. 6. Merger Integration Cycle Time – The average number of days from the authorizing of the merger agreement until integration implementation is accomplished. The lower the spend, the greater the revenue. The lower the cost, the greater the lawyer’s efficiency, productivity, and throughput, and the greater the company’s top and bottom lines. 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 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. What more can the general counsel celebrate other than her ability to better manage outside counsel? 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. 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. Cost per Trademark Registered – The expenses on ($US) of registered trademarks prepared in a year divided by the number of registered trademarks. The lower the cost of services rendered to the legal team, the greater its top and bottom lines. The higher this metric, the more efficient the legal team, the higher the throughput, and the greater the team’s top and bottom lines. Examples of project management key performance indicators: 64. 9am – 5:00pm EST Like KPIs for law firms, not all KPI make sense for all in-house legal departments. 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. The key to a more effective legal department: Thomson Reuters Practical Law Connect. Co-Founder & Alabama Native . The mergers and acquisitions team is authorized to determine the right approach for probable mergers with other firms and acquiring smaller businesses. Improve the total cost of services (inside and outside) – This KPI tracks and measures the total cost of services, both internal and external. How is the data tracked and updated? Schedule variance (SV) 69. Legal Department Headcount Ratio – The number of company-wide FTEs for every devoted legal FTE (total FTEs/Legal FTEs). What data is needed to support it? This KPI allows management to determine where this threshold is, to decide when to hire an in-house legal team. 3. Who creates this data? Small businesses benefit from outsourcing specialist functions. A guided rollout is included with all our plans. Related: Corporate Litigator, Litigation Support Analyst, Corporate Attorney, Corporate Legal Analyst, General Counsel. Number of Trademark Violations – The number of trademark offenses yearly. Examples of KPIs for legal department: The size of in-house legal team compared to industry averages 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. Simply send us your job descriptions and we will set up your evaluations. Cost performance index (CPI) 71. 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. KPIs For The Modern In-House Commercial Legal Department Published on November 29, 2018 November 29, 2018 • 32 Likes • 3 Comments KPIs allow you to know the performance of your department or organization. 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. 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? Read more about our experience in serving specific industries. 2016 Thomson Reuters In-Sourcing and Efficiency Report. Please update to the latest version, or use a different browser for the best experience. Schedule performance index (SPI) 70. Take a look at 18 defined examples. 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?