No attorney would ever present a case without evidence or let a judge decide purely on gut feeling. Yet too many firms don’t think twice about operating their practices that way — without the evidence to support whether they’re making the right decisions for their business.
Consider the 2017 Thomson Reuters State of Small Law Firm Report, which reveals that more than one in 10 law firms don’t even bother to measure profits or revenues, about half don’t measure repeat business, and most don’t measure client satisfaction or case-win percentages.
This raises an important question: How do these firms know they are moving in the right direction if they’re not paying attention to signs, key performance indicators (KPIs) like revenues, profits and client satisfaction, that will notify them when they are veering from their goals?
“KPIs are an early-warning system that alerts you when you may need to change,” explains Mary Juetten, an attorney, business leader, and author of “Small Law Firm KPIs How to Measure Your Way to Greater Profits.”
“If you’re not measuring your potential matters, you could be placed in a bind even by positive situations; for instance, if you’ve been talking to several clients, and they all want to hire you simultaneously and you don’t have enough resources to deliver that work. On the flip side, you could be faced with suddenly not having enough work but you still must pay the lawyers working for your firm. KPIs help you stay on top of your firm’s client development and more, plus proactively respond to and mitigate potential issues before they become full-blown crises.”
Tracking KPIs is Easier Than You Might Think
Juetten says one of the reasons attorneys don’t measure KPIs is because they simply don’t have time. But she does have good news: Tracking KPIs is now easier than ever before. She’ll explain why in the webinar, 3 Secrets to Mastering Legal KPIs, on Thursday, October 25, at noon CDT. (It will also be available on demand after the webinar.) You can register for this webinar here.
In the webinar, Juetten will discuss:
- How measuring KPIs can directly increase profits
- Where you stand compared to other solo and small law firms
- The easiest, fastest and most accurate way to measure KPIs, and much more
Juetten notes that savvy law firms are leveraging technology that automates KPI tracking by delivering information in easy-to-read charts and graphs that are integrated into the practice management dashboard. These KPIs include:
- Year-to-date revenue, work in progress, billings and collections
- Aging accounts receivable so you know which invoices are due and how long they’ve been waiting to be paid
- Top clients by revenue and the clients who owe the most money
- Revenue by practice area so you know which ones are the most profitable
Even if you don’t have this technology, Juetten will explain how simple it is to make KPI measurement a monthly routine.
Take the first step toward measurable success by registering for 3 Secrets to Mastering Legal KPIs.
About the Presenter
Mary Juetten is founder and CEO of Traklight, and has dedicated her more-than-30-year career to helping businesses achieve and protect their success. In 2015, Mary co-founded Evolve Law, an organization for change and technology adoption in the law. She was named to the ABA’s Legal Technology Resource Center 2016 Women in Legal Tech list and the Fastcase 50 Class of 2016. She serves on the Group Legal Services Association Board.
This webinar is sponsored by Thomson Reuters Firm Central. Centralize everything you need to manage your firm and perform client work with Firm Central online practice management software. Learn more about Firm Central and receive a free trial today.
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