It is important to remember that no law firm uses the same KPIs, so it is critical that your dashboard include KPIs that will drive success and assist in implementing/ tracking performance to guide your firm’s strategy. The KPIs should be firm specific, meaning specific to your law firm and not blended data from other survey resources. When designing a dashboard, you must first identify the KPIs you wish to analyze.
The Dashboard Design: What Gets Measured Gets Doneĭesigning a dashboard can sound like a tedious task, but to keep your dashboard on target and focused on the metrics required, you need to ask yourself a few questions: In short, align law firm personnel, implement strategies and measure performance. Dashboards assist law firms in establishing the foundation for benchmarking organizational processes through goal alignment across the firm.
Also, dashboards direct process improvement efforts by converting business data into action-oriented information-helping coordinate actions among all stakeholders (law firm and clients) and assisting in execution of strategic goals. The review of these various metrics establishes a platform for law firm business and operational excellence and uses these KPIs to drive productivity. The most common functional areas are financial and operational, but with the increased focus on client service, marketing and business development, KPIs in these areas are fast becoming more valuable. Because dashboards can provide graphics and visuals that encourage storytelling that demonstrates the active interaction with the data being presented, they can provide a law firm a wide perspective of overall functional area performance. Why a Dashboard?ĭashboards are a simple way for law firm management to monitor KPIs across the firm.
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This column will be the first in a series that will explore the design, development, common mistakes, critical success factors, implementation, strategic value and ROI of performance dashboards, and how law firms can use them for making good business decisions. Because of the sheer volume and different types of data, how do we differentiate the data that is relevant or applicable to the problem we are trying to solve and, ultimately, make informed decisions? What type of KPIs should law firms be looking at? Should the law firm explore financial, operational, client service or marketing KPIs? How should the data be presented so it makes sense? Law firms and legal departments compile many types of data in the form of key performance indicators (KPIs) and try to make sense of the data to assist in making decisions. While we have not gone deep into the weeds in any of these specific areas, it is clear that data, or specifically metrics, is the common denominator. We’ve discussed process improvement methodologies that are used to collect data and other key information that can assist us in quantifying the amounts and types of waste that exist in every legal and business process in each law firm and legal department. Our last few Finance columns have focused on strategic pricing, alternative fee arrangements and the significant role process improvement and project management have taken in the production of legal services.
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