Metric Mania: How to Create & Manage Law Firm KPIs

One attribute that the most successful law firms share is that those businesses have established and maintained a performance culture built around key performance indicators (KPIs); in truth, that’s probably the same for the majority of businesses, full stop. 

 


So, how do you launch a program that works, once you’ve established your metrics.  It’s a three-step process, essentially – and, it is just that: a process.  If you try to launch KPIs in your law firm, without a process, you’re likely to run into lots of resistance, which will slow you down, or entirely stop you. 

 

Socialize. The first step is to ‘socialize’ your new KPIs = essentially, you’re just getting people used to them.  So, announce them, and report on them – but, don’t do anything about them (positive or negative), as yet.  Wait a quarter or two, then move to the next step. 

 

Incentivize. Now, you want to move to the next step: start to incentivize your team, based on results.  You don’t have to worry about negative results here – the negative result is missing the KPI requirements, and not getting the related bonuses.  Everything else is positive.  In other words, performance gets you the good stuff, lack of performance gets you the base compensation model.  In a way, you’re letting people choose how they want to work, and what they want to get out of the job. 

 

Revise. Finally, your team will change, based on the results of your program.  One of four things will happen: (1) Your employees will rise to the occasion, and thrive under the new performance culture – they’ll stick around.  (2) Some of your employees will quit, because they won’t want to work under the new regime – that’s ok, too.  (3) Some of your employees won’t quit, but your new KPIs will highlight their underperformance, to such  degree, that you’ll have to fire them – and, there will be a quantitative reason for doing so.  (4) You’ll hire new employees, who will thrive under the new conditions – and, if they don’t: Well, see (3). 

 

Profitability should rise under these conditions, like so many mammals, during the Paleocene Epoch. 

 

. . . 

 

Want to launch your own performance culture?  Let’s build it together. 

Through a unique partnership between the bar association and Jared Correia's Red Cave Law Firm Consulting, National Creditors' Bar Association members have access to experienced law practice management consultants at a special discount rate.

To get started, visit Red Cave's NCBA landing page, and start running your law practice like a business.

Comments

Post a Comment

Popular posts from this blog

Cash Out: Lawyers Don't Always Have to be the Ones Talking About Money

Image
Most lawyers have trouble talking about money with clients, largely because they just want to help people out – and, the money is secondary to them.     That’s noble; of course, that’s kind of tough , when it comes to running a business.     But, do you actually have to force yourself into the money conversation, if you don’t think you’re good at it?     Well, no.     There are certainly some instances, where you (as the attorney) could offload, that responsibility .  If you can close a client, as a lawyer – you can then bring in a paralegal or office manager, to explain the pricing of services to the client & onboard them .  (I mean, that’s exactly what happen when you buy a car; and, you don’t even blink.)  The continuing collection of fees can be made by automated, recurring payments – or, can be collected by staff, at the click of a button .  (When you pay your regular bills, does the CEO of the company contac...
Read more

City to City: How Local Is Your Web Presence?

Image
If you practice in or near a major city, you’re likely focused on marketing your law practice in said major city.     There’s just one problem with that idea: so are all your competitors.     But, your vision for a local web presence can be broader, if you zoom out.   The fact is that if you start looking at suburbs, you’re likely to find underserved communities; and, if your law firm can focus on providing services there, you’ll be more noticeable, since you’ll have fewer direct competitors.  You see, the thing is , that : lots of law firms don’t look beyond surface strategies – but, if you do, you can potentially uncover a number of compelling, underutilized tactics.     You can acquire demographics information, to better assign your targets .  You can set up virtual office spaces for map placement .  You can start using local keywords .  You can travel to community events, for linkbacks .  You can build out addit...
Read more

Trust Me, Bro: It's Time to Dig Deeper Into Vendor Contracts

Image
Lawyers can get taken advantage of by vendors from time to time, in at least a couple of ways .  First off, most vendors know that attorneys are really busy & just want someone else to handle things for them .  That means that lawyers will often not dig into the elements of a specific contract, or learn enough about a topic to ask relevant questions .  Secondly, vendors know (or, think) that attorneys have money, which means that lots of services branded ‘for lawyers’ are actually upcharges to the same services sold to general businessperson, at a lower rate .   The good news is that: there are ways to combat both of these tactics.     As to the second, you can find your best price, by: (1) reviewing proposals from alternative providers, who work exclusively with lawyers; and, then (2) comparing those to non-legal specific vendor proposals .   That way, you’ll have a better sense of how the market breaks; and, you cannot only make a more inf...
Read more