sample kpi for legal department
Cost performance index (CPI) 71. ... All articles about measuring performance in Legal. KPIs For The Modern In-House Commercial Legal Department Published on November 29, 2018 November 29, 2018 • 32 Likes • 3 Comments The following are sample KPIs for legal departments that law firms can also consider when looking at streamlining their practice. 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. Earned value (EV) 67. Legal service metrics can be used to diagnose the root causes of the department-s low numbers and to report on accomplishments. KPI and analysis of the underlying data can sometimes result in changes to processes outside of the legal department’s purview. Take a look at 18 defined examples. 4. Percentage of Granted Trademarks – The percentage of registered trademarks versus the number of trademarks filed. Quickly drill down to the exact issue on your desk and get the resources you need to work on it right away. 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. 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. This series of articles will also provide examples of data and performance metrics that a legal department of any size might consider collecting. Scorecards and KPI for legal departments reflect objectives that can be continuously evaluated and used to challenge and correct subjective views on performance. Planned value (PV) 65. Composite Risk Index – The effect of a risk incident (1-5) multiplied by the feasibility occurrence (1-5 scale). Policy Audit Frequency – The average number of days between firm operations and policies assessments conducted by the legal compliance team. For your senior management, it reports on your legal performance and provides information for strategic decisions. The higher the billing narrative consistency, the fewer client-queries, the greater customer satisfaction metrics. As you can see, defining objectives, gathering and analyzing data isn’t simple. Examples of KRAs for legal department include the following: Improve timeliness of response for help. Legal service metrics can be used to diagnose the root causes of the department-s low numbers and to report on accomplishments. How much effort is required to produce the data? Trademark Disclosure-to-Filing Cycle Time – The average number of days from disclosure up to the time a trademark application is filed. Strategic Planning Reporting Results Balanced Scorecard . Cost per Trademark Registered – The expenses on ($US) of registered trademarks prepared in a year divided by the number of registered trademarks. Improve the total cost of services (inside and outside) – This KPI tracks and measures the total cost of services, both internal and external. This series will provide practical tools and guidance that will resonate with those departments just starting to measure key performance indicators as well as sophisticated departments who have legal department operations professionals focused entirely on metrics. 8. The higher this metric, the more efficient the legal team, the higher the throughput, and the greater the team’s top and bottom lines. ... One can assign values and numbers to the KPIs (Key Performance Indicators) and make sure that statistics remain within the 'manageable range'. Outside Counsel Fees as a percentage of Total Legal Expense – The percentage of the amount ($US) consumed on outside legal counsel versus the total legal costs sustained by the firm. When a company passes an income-generation threshold, it becomes more cost-effective to employ in-house specialists. 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. 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? 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”). 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. 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). The originating firm still employs the secondee. Percentage of Partners’ Hours – The percentage of partners’ hours worked versus the total hours worked by all timekeepers. KPIs is how you take the pulse of your firm and ensure that your business is performing at its best. Associates-to-Partners Ratio – The ratio of associates to partners for the preceding year. Outside expense versus in-house – This KPI tracks and measures external versus in-house expenses. 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. Improve quality of legal work and internal satisfaction with services. Scorecards and KPI for legal departments reflect objectives that can be continuously evaluated and used to challenge and correct subjective views on performance. 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. While the first KPI evaluates the time it takes to get a contract from start to … 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. This metric, indeed most the metrics on this list, pre-supposes that a more basic … 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. 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. are generated, distributed, organized, stored, and secured. Number of Trademark Violations – The number of trademark offenses yearly. Co-Founder & Alabama Native . Maximize your in-house teamâs efficiency with Practical Law Connect. The lower the spend, the greater the revenue. Whether all commercial legal work is conducted in-house or outsourced to a third-party is primarily dependent on the size of the organization. 18 Key Performance Indicator (KPI) Examples Defined Key performance indicators can help your organization or department succeed. 18 Key Performance Indicator (KPI) Examples Defined Key performance indicators can help your organization or department succeed. +1 (970) 579-0900 Like KPIs for law firms, not all KPI make sense for all in-house legal departments. These KPIs are aimed to improve core competencies like corporate governance, mergers and acquisition process, litigation management, and legal administrative support. Examples of project management key performance indicators: 64. Introducing the most intelligent legal research service ever. Read more about our experience in serving specific industries. Legal spend by business unit. email@example.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. KPIs are the indicators to measure the success of any project. KPI #3 Enable self-help The days of in-house legal trying to do everything have gone. 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. Related: Governance Analyst, Corporate Attorney, Corporate Counsel, Legal Systems Administrator, Regulatory Analyst. Ted Jackson. 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. Auditing a sample of executed contracts every three to six months. Expert HR advice is available to all customers free of charge. 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. 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. KPIs for the Efficient Legal Department. Outside Counsel Evaluation Frequency – The average number of days between outside counsel management groups’ assessment of outside counsel for work quality. And somewhere mixed in, is the need to develop key performance indicators (KPI) for the legal department. 6. The lower the cost of services rendered to the legal team, the greater its top and bottom lines. Examples of project management key performance indicators: 64. This series of articles will also provide examples of data and performance metrics that a legal department of any size might consider collecting. Related: Paralegal, Document Production Specialist, Document Manager, Licensing Specialist. 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. Examples of KPIs for legal department: The size of in-house legal team compared to industry averages Efficient in-house legal teams rely on Thomson Reuters Practical Law Connect. 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? This set of KPIs allows for the comprehensive management of all paralegal employees to ensure maximum engagement, productivity, and output. 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. 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? Efficient in-house legal teams rely on Thomson Reuters Practical Law Connect. 10 Step KPI … 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. Like KPIs for law firms, not all KPI make sense for all in-house legal departments. Lawyers traditionally are not good at letting go … 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). Percentage of Granted Patents – The percentage of awarded patents versus the number of patents filed. Efficient in-house legal teams rely on Thomson Reuters Practical Law Connect. Actual cost (AC) 66. Schedule variance (SV) 69. 9. This KPI allows management to determine where this threshold is, to decide when to hire an in-house legal team. Small businesses benefit from outsourcing specialist functions. The legal department’s objectives are defined as a suite of KPIs that measure the legal department’s efficiencies, effectiveness, and productivity. A productive legal team is described as a unit that consistently meets expectations, implements successful cost efficiencies, and keeps customers happy and satisfied. Read more about each financial KPI. The lower the cost, the greater the lawyer’s efficiency, productivity, and throughput, and the greater the company’s top and bottom lines. The cynic will answer: Nothing â lawyers canât do math. Getting the best results from your KPI dashboard requires you to choose excellent KPIs. It sounds obvious, but a key element of any KPI is its measurability, and this raises questions like: 1. Average Fee per New Client – The yearly profit accumulated from new customer fees divided by the total number of new customers. How is it created? 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. Use resources efficiently. The following are sample KPIs for legal departments that law firms can also consider when looking at streamlining their practice. IP Conflicts Resolved – The number of intellectual property rights disputes settle yearly. As you can see, defining objectives, gathering and analyzing data isn’t simple. Delay in approvals.
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