Donât simply say, âI want to grow my firm.â You need to clearly specify the aspect of your firm you want to grow. Teresa Matich is an experienced legal tech writer and editor. Trying to measure every performance indicator available is overwhelming, needlessly time-consuming, and counterproductive. Sally J. Schmidt. Make the goal worth working for, but don’t set yourself up for failure. And when asked about his golf game,…, A medical degree is a lot like a law degree in that it comes with…. Every firm has to set their own targets before choosing KPIs to measure, because they are unique to your practice. Firm culture KPIs can offer valuable insights on the health of your organization that might otherwise be overlooked—which is important, as office culture can have an impact on clients, and thus your overall business. The very first time I heard of the role of CINO at a law firm … Goals. One of the more daunting tasks (whether you are general counsel or not) is setting useful goals for the upcoming year. One final note: If youâre not a sole practitioner, make sure you share your goal with all your staffers, even those who arenât attorneys. An analysis of our client’s top competitors, for example, revealed a legal sea of sameness. Getting everyone on the same page will help make your goals more achievable. 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. The purpose of each initiative and activity. She’s also interviewed dozens of practicing lawyers and leading legal industry thinkers, including Preet Bharara and Bryan Stevenson. Set a target date in mind. Executive summary . 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. No Games. Make an inventory of the data being collected. After all, if you are just starting out, you will have different goals and need different strategies than if you are heading an established firm after 30 years of practicing law. Determine your firmâs actual strengths and weaknesses, then build goals around them. What is the lifetime value of every client? How many leads? If you want to use data to determine if you’ve performed well or not, you need to first identify what you’re trying to achieve. ), Current run rate (projected annual revenue based on the past three months), Current anticipated annual costs (total amount of anticipated annual costs, including salaries, for a year, based on the last three month’s costs), Difference between your current run rate and current anticipated annual costs, Amount of accounts receivable (AR) outstanding, Amount of revenue per square foot of office space. Is it revenue? 26 Examples of Quality Goals posted by John Spacey, November 10, 2018. These goals are used to evaluate the performance of employees at the end of a performance period. Leads? The idea is to set goals that push you (and your colleagues) to grow. Choose goals that will actually impact your business. Read an in-depth analysis on the legal industry. To create a law firm whose primary goal is to exceed customer’s expectations. Will it bring in more revenue for your law firm? Know-how […] One way: Be SMART about it. Photo Credits. With this in mind—before you look at which firm-specific KPIs you want to measure—you should first think about your practice’s unique overall goals, and how your firm measures success. Applying the SMART grid to your goals will help you to create more specific, achievable targets for your business, and to measure your progress toward them. She is a Fellow of the College of Law Practice Management and was one of the first inductees to LMA’s Hall of Fame. Start by deciding what type of information provides valuable insight into your business’s performance and what data is needed in order to give you that information. SMART goal setting, which stands for Specific, Measurable, Attainable, Relevant, and Time-Based, is an effective process for setting and achieving your business goals. A 40 percent increase in settlements, for instance, is a goal based on luck. A performance goal is a target for the work of an employee. Now that you have a few ideas for which KPIs you want to monitor at your firm, what do you need to do to actually use them to your advantage? The goal is typically along the lines of “build a healthy practice,” “get more clients” (as if they may be “gotten”), “generate more visibility for myself and my firm,” and so on. Once you’ve established a system for monitoring your law firm KPIs, upkeep is relatively simple. Have questions? When developing your law firm marketing plan, start with Why. If growth is your ambition, you need to make a plan to achieve it. 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. Remember that not all KPIs are useful for your firm. You may have run across the SMART acronym before. The reason for this is that the larger tech firms usually will go with one of the larger law firms in town because a large firm can offer them a wide range of services and do all … 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. Call 1-888-858-2546 or email [email protected]. Where do you want it to go? Objectives give more than direction. Law firm KPIs, or Key Performance Indicators, can help. Advantages of Making a Legal Strategic Plan. Measuring more than the traditional billable hour metrics can help your firm better understand its current and potential monetary situation. 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. Determine how to measure key insights and monitor your long-term goals. 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. They offer a marketing framework around which you can build your law firm. 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. And you donât have to be a big law firm to put them to work: Specific. Solo or small law firms can build sustainable law practices by focusing on client-centric services , future-oriented technology, profit-oriented business models, and access to justice and inclusion. Consider these… Read More » © 2008 - 2020 Themis Solutions Inc. (Clio) |. KPIs give you the data and knowledge to answer critical questions, and they should be measurable, specific, and targeted to the unique goals of a business. In doing so we were struck by how generically firms described themselves. There are a lot of elements that needs to be considered for each one such as the geographical location of the firm’s physical store, its size employee and profit-wise, and its level in the business development stage. Our sales team is available Monday to Friday from 8 a.m. to 8 p.m. EST. It may sound obvious or unnecessary, but you should clearly define the purpose of your law firm marketing plan. Choose goals that will actually impact your business. By identifying and tracking goals for performance indicators (for example, the KPI of monthly revenue), you can better assess how your firm is performing. I don’t want free coffee or help acquiring new clients. large, mid-size and boutique law firms. These criteria have been around since 1981 and are widely attributed to Peter Drucker’s management by objectives approach, in which businesses establish clearly defined and agreed-upon goals. Start with these 12 tips from Mary Juetten and Sam Glover to make your legal practice more efficient. But those goals shouldnât be so ambitious that they canât be achieved. Webcast follow-up Q & A: How solo firms can improve their marketing, Watch Caddyshack, Then Watch Your Law Firmâs Performance, What Not to Say When Marketing Your Law Firm. Law firms and individual attorneys must engage in soul searching occasionally to articulate objectives and goals. For example, a goal might be to have a healthy, successful firm that is a leader in service and that has a loyal client following. Venable LLP, an AmLaw 100 firm based in Washington DC, operates a portfolio of legal blogs and websites through which it delivers insights on a number of legal topics. It was originally introduced by George Doran in a 1981 issue of Management Review. Goals, Measures and Scorecards: Law Firms Fixated on Today’s Billable Hours and Collections Page Eight It should be noted that there is a very large middle in this sample. Some law firms may decide to operate a general law business that cuts across various law practices, whilst others may choose to specialize in any of the two major areas of private sector law. These individual performance KPIs could include metrics like: Of course, financials, profitability, and margins are central to the success or failure of your law firm—so pay special attention to the following KPIs: When looking at your law firm KPIs, you might want to consider looking beyond revenues and clients, and looking inwards to your firm culture. Make the goal worth working for, but donât set yourself up for failure. Essentially, you want to follow these six steps: Integrating KPIs into your business planning allows you to create a customized dashboard for monitoring and evolving the success of your law firm. They can help you answer questions like: Monitoring the performance of pivotal aspects of your firm can make a major impact on your firm’s revenues, growth, and overall success—but in order to succeed in our changing legal landscape, you must evolve what and how you measure. Find out which Clio events and CLE webinars are coming up next. Donât rely on hoping and wishing. Legal consumers have changed â has your firm’s approach? 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. A 40 percent increase in settlements, for instance, is a goal based on luck. Instead of inspiring you, impossible goals can actually discourage you. Are you doing criminal defense work where you hope that the client is only with you once? Just great advice. My next several posts will deal with such items. Or it may be more general growth. You can’t measure what you don’t track. Businesses and law firms alike fail because they pay out more than they bring in. Don’t rely on hoping and wishing. The beginning of any calendar year is always busy with key administrative tasks for an in-house legal department. is a pneumonic device. Once you have a metric, attach a number to it. 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. Whichever law firm KPIs you choose to use, it’s important to keep in mind that none of these metrics mean anything out of context. To help guide your goal setting and overall marketing strategy, download the free playbook Legal Marketing 101: A Guide for Small Law Firms. Measurable. Nowadays, you hear every entrepreneur and investor saying “KPI”—so much that you might think of “KPI” as merely a buzzword. We surveyed over a thousand lawyers and legal clients - and reviewed case volumes from tens of thousands of law firms - to discover tips for adapting to COVID-19. Hear how the legal industry is adapting to the COVID-19 crisis. That might be a practice area â a current one, or perhaps one youâd like to add. Marketing strategies vary between law firms. 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. 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. Settlements? 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. Now that it’s clear why data-driven KPIs are critical to success, read on for our list of KPIs to measure, and manage, at your law firm (Note: for each KPI, set a predetermined time period, i.e., per previous month or year, in which to keep track). Without one, youâll have no urgency and motivation to work toward your goal. Venable LLP’s blogs and websites. For instance, you know that social media plays an important role in online marketing. ... She has written for law firms, public relations and marketing agencies, science and technology websites, and business magazines. Technology firms. Try adopting the old management model of “Plan, Do, Check, Act.” Plan to gather the data for your KPIs. As a lawyer, you’re an expert on the practice of law—but are you taking the time to track what’s important when it comes to guiding the success of your firm? When using a practice management software like Clio to track all of your cases, contacts, and billing in one place, one of the advantages is that it’s really easy to run reports to get the information you need to track your most important KPIs. FindLaw, part of Thomson Reuters, is a leading provider of business development solutions for small law firms. As you consider that number, keep in mind that it should be something that is doable. Practical real world examples highlight how the strategic planning process has worked in . The world’s best legal conference—gone virtual. You'll also get useful weekly blog updates. While goals for lawyers need to be attainable, they also have to challenge you and be worth setting. Get this free e-book from legal industry expert Mike Whelan, Jr. Compliance to laws, regulations, standards and internal policies such as best practices. Pulling it all together can be challenging, but it’s worth it if you can learn how to implement SMART goals (S=specific, M=measurable, A=achievable, R=relevant, and T=time-bound). These are typically agreed between the employee and their reporting manager at the start of a business year or quarter. A key differentiator between successful and unsuccessful firms is setting goals, writing […] Selecting and monitoring specific performance indicators creates a clean line of accountability at your firm. In that case, you need to define the metric. An accurate Zip Code ensures your appointment is set with the correct local marketing consultant. Itâs a smart move. 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. Ty Webb didn't measure himself against anything, really. For example if one of your career goals is to be a Director for an ASX200 Board, you might take advantage of an opportunity to accept a Board position on a Not-for-Profit in the short term. Here are some performance indicators to help you evaluate client satisfaction: An efficient law firm is a profitable law firm—yet productivity is a huge issue for most, with legal professionals billing an average of just 2.4 hours of an 8-hour day, according to the 2018 Legal Trend Report. Through its team of legal marketing experts, FindLaw drives the industry by delivering a comprehensive portfolio of proven online and offline marketing solutions designed to connect law firms with targeted prospective clients. Schedule a coaching session with our legal marketing experts and receive a gourmet coffee gift card absolutely free! 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. Law Firm Slogans Let me fight for you We will take you through each step till the end. SMART Goals for your Law Firm. Number of clients? With KPIs, you can track specifics over time, making it easier to predict results for what will work in the future. Do you know which attorney or which client is contributing to or reducing your profits? But if your goal is to reach 2,000 Twitter followers by June, you need a business justification for that. 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. 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. Timely. It refers to a set of five criteria for establishing business goals. Determine your firm’s actual strengths and weaknesses, then build goals around them. Setting both goals and objectives is crucial to establishing the planning process. The type of practice, firm, and lawyer lifestyle objectives all factor into setting the targets to evaluate these numbers. Objectives are progress markers along the way to goal achievement. Category : work objectives examples for lawyers – “My main goal is to be part of a law firm that specializes in business consulting, so I can use my knowledge and experience I have acquired over the years of practice as a lawyer” Category : work objectives examples for lawyers Consider using some of the following client acquisition KPIs to show you what’s working for your firm: Once you have a client, what do you do to develop your relationship with them?
2020 law firm goals examples