Accountability If you haven’t identified what KPIs to track, it’s difficult to determine who or what is responsible for wins or losses at your firm—which in turn makes it difficult to replicate or avoid certain results. Relevant. The chart of accounts for law firms should include the IOLTA or trust account, as well as a trust liability account (to offset and show that the funds in the IOLTA account are not the law firm’s). Schedule a coaching session with our legal marketing experts and receive a gourmet coffee gift card absolutely free! A 1 percent year-over-year growth might be mathematically real, but itâs statistically irrelevant. Make the goal worth working for, but don’t set yourself up for failure. By setting specific targets and then tracking and measuring key performance indicators, you can empower yourself to make more effective decisions on behalf of your law firm, clients, and staff. Read an in-depth analysis on the legal industry. Based on insights from the 2017 Legal Trends Report, this guide shows you how to apply them to your firm. SMART Goals for your Law Firm. A performance goal is a target for the work of an employee. Key Performance Indicators, or just “KPIs,” are business metrics that evaluate an organization’s performance and success. By learning to pinpoint, measure, and leverage specific performance indicators, law firm KPIs provide: There’s a big difference between simply collecting data and analyzing data. Not many attorneys wish their careers to simply plod along. Make an inventory of the data being collected. Measuring more than the traditional billable hour metrics can help your firm better understand its current and potential monetary situation. But if your goal is to reach 2,000 Twitter followers by June, you need a business justification for that. She is a Fellow of the College of Law Practice Management and was one of the first inductees to LMA’s Hall of Fame. For example, your target for the cost of client acquisition depends on the type of law and the return on investment per client. If growth is your ambition, you need to make a plan to achieve it. ... She has written for law firms, public relations and marketing agencies, science and technology websites, and business magazines. Make the goal worth working for, but donât set yourself up for failure. Determine if there are any gaps between what you have and what you need. Hereâs an example of the SMART guidelines at work: âIncrease the volume of SSDI clients we retain by 7 percent in the first quarter of 2015 through targeted online advertising.â Itâs specific in terms of the goal, the number increase, and the timeframe. Determine how to measure key insights and monitor your long-term goals. Law firm strategy helps firms discover their opportunities and threats, uncovering key performance indicators (KPIs) to measure progress and offer the best chance at success. To develop a client list that includes at least 20 companies, each with revenues of over $3 million. A key differentiator between successful and unsuccessful firms is setting goals, writing […] In doing so we were struck by how generically firms described themselves. In the following guide, we’ll explore how using law firm KPIs impacts your law firm’s success, and how to pick the right KPIs for your practice’s unique situation. While they exist to provide legal advice to internal clients and to protect the legal interests of the company, they must also constantly consider financial issues as well, such as cost control. Specifically, nearly 60% of managing partners reported “adopt(ing) some balanced scorecard practices” or “informally adopt(ing) the Instead of inspiring you, impossible goals can actually discourage you. Try adopting the old management model of “Plan, Do, Check, Act.” Plan to gather the data for your KPIs. S.M.A.R.T. With KPIs, you can track specifics over time, making it easier to predict results for what will work in the future. I don’t want free coffee or help acquiring new clients. Objectives give more than direction. Check if your firm is using systems that are integrated with each other, so that pulling figures is streamlined. An analysis of our client’s top competitors, for example, revealed a legal sea of sameness. For example, a law firm that is just starting out can look towards merging with a bigger law firm that is well positioned and recognized in order to form strategic marketing alliance. Please confirm your Zip Code *An accurate Zip Code ensures your appointment is set with the correct local marketing consultant. Then, you can set aside a block of time for yourself to analyze the results, identify patterns (good and bad), and find opportunities for adjustment. Many law firms all over the United States are coming to the conclusion that the bigger the better for them. Ratio of billed hours compared to non-billable hours worked, Utilization rate (number of billable hours worked divided by the number of hours in the workday), Realization rate (number of billable hours invoiced divided by the number of billable hours worked), Collection rate (number of hours collected divided by the number of hours invoiced), Our sales team is available Monday to Friday from, 300 - 4611 Canada Way, Burnaby, BC V5G 4X3, Understanding Government Stimulus Options During Covid-19, How to choose the best KPIs for your firm, measure performance to assess your firm’s strengths. Law Firm Marketing Plan Must-Knows. large, mid-size and boutique law firms. UNDERSTAND LEGAL CONCEPTS AND THEIR PRACTICAL APPLICATIONS. But those goals shouldnât be so ambitious that they canât be achieved. Are you doing criminal defense work where you hope that the client is only with you once? It can be as easy as assigning a staff member to input the numbers for each predetermined KPI once a month. Objectives are progress markers along the way to goal achievement. They can choose to operate as a transactional (corporate) law firm or specialize in litigation. Trying to measure every performance indicator available is overwhelming, needlessly time-consuming, and counterproductive. If you want to do things right, then your goals should follow the SMART formula, which means they should be Specific, Measurable, Attainable, Realistic and Time specific. Get this free e-book from legal industry expert Mike Whelan, Jr. The law firm marketing consultants at The Rainmaker Institute specialize in helping small to medium-sized law firms generate more clients and increase revenue fast. Consequently, corporate law departments often share similar business objectives. Or it may be more general growth. Thoroughly understanding the firm's goals will better help him make decisions for advancing the company. The purpose of each initiative and activity. That might be a practice area â a current one, or perhaps one youâd like to add. Write them down. Firm Size *SelectSolo Law FirmLaw Firm (2-3 attorneys)Law Firm (4-6 attorneys)Law Firm (7-10 attorneys)Law Firm (11-20 attorneys)Law Firm (21-29 attorneys)Law Firm (30-79 attorneys)Law Firm (80-179 attorneys)Law Firm (180 or more attorneys)Other. Aside from a health and safety strategic plan, a sales and marketing plan, and other kinds of operational plans for the business, you also have to create a complete and detailed legal strategic plan.If you wonder why this is recommended, there are actually a lot of advantages that you can get if you can have this document for your business. Legal consumers have changed â has your firm’s approach? A 40 percent increase in settlements, for instance, is a goal based on luck. These goals are used to evaluate the performance of employees at the end of a performance period. For example, if your practice is a car, KPIs are the instrument panel; fuel, ... Delving into KPIs for law firms is beyond the scope of this post, but for a good overview of how some larger firms develop and track KPIs, see this article from LPM a few years ago. Our sales team is available Monday to Friday from 8 a.m. to 8 p.m. EST. Marketing budget ratio (the ratio of the total marketing spend to the total fees billed), Marketing cost per client (the ratio of the total marketing spent to the number of clients billed), The number of new clients by source (referral, website, review site, etc. Technology firms. While all of these goals are possible when supported by concrete marketing tactics, so many lawyers fail to attain their goals. FindLaw, part of Thomson Reuters, is a leading provider of business development solutions for small law firms. You can also use Clio Manage’s Firm Dashboard to quickly access your firm’s key metrics—like how many billable hours your firm has captured, billed, and collected—all in one central dashboard. Photo Credits. We’ve also assembled a vast list of potential law firm KPIs to manage—so you’ll have plenty of ideas to bring back to your firm. 1. Law Firm Slogans Let me fight for you We will take you through each step till the end. You'll also get useful weekly blog updates. Setting both goals and objectives is crucial to establishing the planning process. No sales pitches. Corporate law departments play a unique role in both the business and legal fields. This post was last updated on November 16, 2020. The first step in establishing your KPIs is looking at the data you already have available in your firm’s practice management system. Presented as an easy-to-understand visual dashboard, the Firm Dashboard makes it simple to view, track, and benchmark key performance indicators, then make data-driven decisions for your firm based on those key metrics.