Without one, youâll have no urgency and motivation to work toward your goal. Without setting and tracking KPIs, you’re often left to speculate over why things are going wrong (or right) within your firm. Determine if there are any gaps between what you have and what you need. 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? Number of clients? Just great advice. 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). 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. The purpose of one law firm’s marketing endeavors are not necessarily the same as another’s. In this post you will find 40 Best Law Firm Slogans and Best Taglines. 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. Setting both goals and objectives is crucial to establishing the planning process. My next several posts will deal with such items. Instead: How many clients do you want to add? Where do you want it to go? New clients are likely to be from small technology firms or start-up companies. 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. 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. Know-how […] The letters stand for specific, measurable, attainable, realistic and timely. Photo Credits. 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. One final note: If youâre not a sole practitioner, make sure you share your goal with all your staffers, even those who arenât attorneys. The beginning of any calendar year is always busy with key administrative tasks for an in-house legal department. 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). Every firm has to set their own targets before choosing KPIs to measure, because they are unique to your practice. 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. 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. They offer a marketing framework around which you can build your law firm. But those goals shouldnât be so ambitious that they canât be achieved. 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. Compliance to laws, regulations, standards and internal policies such as best practices. It’s all well and good to know that you want to measure performance to assess your firm’s strengths, but—with seemingly endless areas to assess—how do you decide which specific KPIs are most valuable for your law firm? 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 … This post was last updated on November 16, 2020. Donât rely on hoping and wishing. By planning, selecting, measuring, and analyzing law firm KPIs specific to your business, you’ll be better able to make data-driven decisions and informed changes to improve your practice. Make an inventory of the data being collected. And you donât have to be a big law firm to put them to work: Specific. By tracking your firm’s productivity, you can locate areas where time is being wasted—and, in doing so, you can identify areas where time can be redirected to revenue-creating opportunities. Based on insights from the 2017 Legal Trends Report, this guide shows you how to apply them to your firm. Firm Goals and Objectives: Goals are destinations—where you want your firm to be. 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? Venable LLP’s blogs and websites. 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. Personal & Career Goals for Lawyers: A Complete Guide (2020) Executive summary . 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. While goals for lawyers need to be attainable, they also have to challenge you and be worth setting. © 2008 - 2020 Themis Solutions Inc. (Clio) |. It can be as easy as assigning a staff member to input the numbers for each predetermined KPI once a month. is a pneumonic device. 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. Instead of inspiring you, impossible goals can actually discourage you. – “My biggest goal is to lead a law firm that specializes in providing all the advice and advocacy for disadvantaged people in society.” Category : professional goals examples for a lawyer – “I think my main commitment as a lawyer, is to reclaim the role of women in society by defending their rights, thereby changing the vision that the world has for women.” Where is your law practice going? 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. Donât simply say, âI want to grow my firm.â You need to clearly specify the aspect of your firm you want to grow. Get FindLaw legal marketing tips right in your inbox and never miss a beat. Measurable. They can choose to operate as a transactional (corporate) law firm or specialize in litigation. These goals are used to evaluate the performance of employees at the end of a performance period. Corporate law departments play a unique role in both the business and legal fields. Itâs a smart move. Determine how to measure key insights and monitor your long-term goals. By identifying and tracking goals for performance indicators (for example, the KPI of monthly revenue), you can better assess how your firm is performing. 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. Law firms and individual attorneys must engage in soul searching occasionally to articulate objectives and goals. To be able to offer each year some legal services at … You will most likely have to create a spreadsheet for all your metrics. Sally Schmidt is President of Schmidt Marketing, Inc., which offers marketing services to law firms.She was a founder and the first President of the Legal Marketing Association. Teresa Matich is an experienced legal tech writer and editor. Are you doing criminal defense work where you hope that the client is only with you once? R elevant. How many leads? What is the lifetime value of every client? S.M.A.R.T. At a time when the need to differentiate is more critical than ever, law firms by and large communicate the same anodyne messages and interchangeable attributes. A 1 percent year-over-year growth might be mathematically real, but itâs statistically irrelevant. 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. So how do you establish goals that are aspirational but still achievable? Legal Marketing 101: A Guide for Small Law Firms, Marketing to Spanish speakers: Your questions answered, Duplicate content can put your website at risk. Once you’ve established a system for monitoring your law firm KPIs, upkeep is relatively simple. Your goals should consider the parts of your role that you enjoy the most – is it liaising with clients, preparing contracts , negotiating, advocacy, doing research? Many law firms all over the United States are coming to the conclusion that the bigger the better for them. An accurate Zip Code ensures your appointment is set with the correct local marketing consultant. She is a Fellow of the College of Law Practice Management and was one of the first inductees to LMA’s Hall of Fame. Here are some law firm KPIs to consider when it comes to productivity: If you’re using Clio Manage, the Firm Dashboard captures and tracks your firm’s utilization, realization, and collection rates for you—putting these KPIs at your fingertips so you can quickly and regularly gain insights and track productivity for your firm. An analysis of our client’s top competitors, for example, revealed a legal sea of sameness. 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. Once you have a metric, attach a number to it. 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. Timely. You'll also get useful weekly blog updates. Hear how the legal industry is adapting to the COVID-19 crisis. Remember that not all KPIs are useful for your firm. Our sales team is available Monday to Friday from 8 a.m. to 8 p.m. EST. You may have run across the SMART acronym before. Law firm KPIs, or Key Performance Indicators, can help. Being data-driven doesn’t need to be overwhelming. Find out which Clio events and CLE webinars are coming up next. Make the goal worth working for, but don’t set yourself up for failure. You can’t measure what you don’t track. FindLaw, part of Thomson Reuters, is a leading provider of business development solutions for small law firms. ... Once you have your goals firm … Trying to measure every performance indicator available is overwhelming, needlessly time-consuming, and counterproductive. 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. Choose goals that will actually impact your business. Tracking your NPS can help your law firm find out whether or not clients would recommend your services. As you consider that number, keep in mind that it should be something that is doable. Here are a few questions to consider before looking at specific KPIs: When it comes to metrics you can measure, the possibilities are endless. Check if your firm is using systems that are integrated with each other, so that pulling figures is streamlined. It’s true what they say: What gets measured, gets managed. I don’t want free coffee or help acquiring new clients. Sally J. Schmidt. 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. Legal departments do not always lend themselves to… One way: Be SMART about it. Leads? ), The number of potential new clients who showed up to their consultation appointments, Number of potential clients converted into clients, Dormant client rates (the ratio of clients with no recent matters to the number of total clients), Client satisfaction scores (this could be through a manual survey or software), The number of billable hours per legal assistant, Realization rate (amount billed as a proportion of number of billable hours worked), Collection rate (amount collected as a proportion of the amount billed), Amount of firm debt (lines of credit, credit cards, loans, etc. SMART goal setting, which stands for Specific, Measurable, Attainable, Relevant, and Time-Based, is an effective process for setting and achieving your business goals. Not many attorneys wish their careers to simply plod along. But what exactly are KPIs, and why are they important? For example, your target for the cost of client acquisition depends on the type of law and the return on investment per client. How efficiently are you resolving their cases? 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. Businesses and law firms alike fail because they pay out more than they bring in. We well understand your intention Justice, it’s your first step We’re in your corner! Have questions? Start with these 12 tips from Mary Juetten and Sam Glover to make your legal practice more efficient. ), 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. No Games. By identifying and tracking goals for performance indicators (for example, the KPI of monthly revenue), you can better assess how your firm is performing. Most desire to grow their businesses â add clients, boost their revenues, perhaps take on a new partner, paralegal or assistant. iX JOhN STERLING is a founding partner of Sterling Strategies, LLC. 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. 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. Read an in-depth analysis on the legal industry. 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 Consequently, corporate law departments often share similar business objectives. Relevant. Law Firm Marketing Plan Must-Knows. She's the editor of the Clio Blog, and has written for publications such as GP Solo, Legal Technology Today, and Above the Law. To get a better understanding of your client base, try adding some of the following client development KPIs to your assessment roster: Measuring client satisfaction is a new concept for the legal industry, but knowing what you can improve upon—based on solid feedback—is critical to business success, today. That might be a practice area â a current one, or perhaps one youâd like to add. The idea is to set goals that push you (and your colleagues) to grow. 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). ... For example, an ecommerce firm that views late deliveries as damaging to the customer experience. Schedule a coaching session with our legal marketing experts and receive a gourmet coffee gift card absolutely free! 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. It refers to a set of five criteria for establishing business goals. Or are you doing intellectual property work that can be repeated over the years? A performance goal is a target for the work of an employee. But if your goal is to reach 2,000 Twitter followers by June, you need a business justification for that. Thoroughly understanding the firm's goals will better help him make decisions for advancing the company. 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. WHY: Purpose & Goals. The first step in establishing your KPIs is looking at the data you already have available in your firm’s practice management system. Goals. Advantages of Making a Legal Strategic Plan. No sales pitches. If growth is your ambition, you need to make a plan to achieve it. Here are a few marketing KPIs to consider: New clients are vital to the success of your law firm—but finding them is a complex process. Ty Webb didn't measure himself against anything, really. Objectives give more than direction. 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. October 13-16, 2020. One of the more daunting tasks (whether you are general counsel or not) is setting useful goals for the upcoming year. 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. It may sound obvious or unnecessary, but you should clearly define the purpose of your law firm marketing plan. To develop a client list that includes at least 20 companies, each with revenues of over $3 million. Practical real world examples highlight how the strategic planning process has worked in . 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. Nowadays, you hear every entrepreneur and investor saying “KPI”—so much that you might think of “KPI” as merely a buzzword. A good part of the difficulty is that attorneys, due to their training, find it difficult to visualize the future without substantive evidence. To increase the ability to serve public interest organizations each year. 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. The very first time I heard of the role of CINO at a law firm … While law firm KPIs are useful for measuring the overall success and growth of your firm, you might also want to track performance for individual members of your team—whether for yourself or for staff members. Measuring more than the traditional billable hour metrics can help your firm better understand its current and potential monetary situation. 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. 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. 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. Marketing strategies vary between law firms. A 40 percent increase in settlements, for instance, is a goal based on luck. To help guide your goal setting and overall marketing strategy, download the free playbook Legal Marketing 101: A Guide for Small Law Firms. Once you’ve completed and analyzed these KPIs, take corrective action and then repeat this monthly. The type of practice, firm, and lawyer lifestyle objectives all factor into setting the targets to evaluate these numbers. Specifically, nearly 60% of managing partners reported “adopt(ing) some balanced scorecard practices” or “informally adopt(ing) the Will it bring in more revenue for your law firm? Consider these… Read More » In doing so we were struck by how generically firms described themselves. 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. Or it may be more general growth. Identify what your goals are and how you're going to achieve them. 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. Choose goals that will actually impact your business. Get this free e-book from legal industry expert Mike Whelan, Jr. 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. Selecting and monitoring specific performance indicators creates a clean line of accountability at your firm. Key Performance Indicators, or just “KPIs,” are business metrics that evaluate an organization’s performance and success. Write them down. To create a law firm whose primary goal is to exceed customer’s expectations. 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. 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. Make the goal worth working for, but donât set yourself up for failure. Do you know which marketing expenses lead to the most valuable clients? This field is for validation purposes and should be left unchanged. When developing your law firm marketing plan, start with Why. Legal consumers have changed â has your firm’s approach? Business goals usually involve an entire organization and can include items like budgets, customer lists, vendors, and service or product management. While all of these goals are possible when supported by concrete marketing tactics, so many lawyers fail to attain their goals. 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. 1. 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. With KPIs, you can track specifics over time, making it easier to predict results for what will work in the future. 26 Examples of Quality Goals posted by John Spacey, November 10, 2018. Technology firms. For instance, you know that social media plays an important role in online marketing. 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. First and foremost, there is something to the act of sitting down and taking an honest and realistic look at the intentions and goals you have for your firm. Determine your firm’s actual strengths and weaknesses, then build goals around them. 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. UNDERSTAND LEGAL CONCEPTS AND THEIR PRACTICAL APPLICATIONS. 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? SMART Goals for your Law Firm. Don’t rely on hoping and wishing. 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. 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. Since 1999, we have helped over 18,000 attorneys create successful and sustainable law practices. ... She has written for law firms, public relations and marketing agencies, science and technology websites, and business magazines. And thatâs where setting up clear business goals is essential. Try adopting the old management model of “Plan, Do, Check, Act.” Plan to gather the data for your KPIs. One way law firms are answering this call is by appointing, identifying or hiring someone in the role of what is sometimes called, the chief innovation officer (CINO), or some other title that signifies this person is the head of innovation. Determine your firmâs actual strengths and weaknesses, then build goals around them. These are typically agreed between the employee and their reporting manager at the start of a business year or quarter. Here’s everything you need to know to start tracking NPS at your law firm. Do you know which attorney or which client is contributing to or reducing your profits?
2020 law firm goals examples