R elevant. Choose goals that will actually impact your business. 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. With KPIs, you can track specifics over time, making it easier to predict results for what will work in the future. 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. 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. Read an in-depth analysis on the legal industry. 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. A good part of the difficulty is that attorneys, due to their training, find it difficult to visualize the future without substantive evidence. Attainable. 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. An analysis of our client’s top competitors, for example, revealed a legal sea of sameness. Legal Marketing 101: A Guide for Small Law Firms, Marketing to Spanish speakers: Your questions answered, Duplicate content can put your website at risk. Technology firms. What is the lifetime value of every client? Venable LLP’s blogs and websites. 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. Call 1-888-858-2546 or email [email protected]. But those goals shouldnât be so ambitious that they canât be achieved. 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 refers to a set of five criteria for establishing business goals. 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). Once you’ve established a system for monitoring your law firm KPIs, upkeep is relatively simple. Selecting and monitoring specific performance indicators creates a clean line of accountability at your firm. 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. 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. Ty Webb didn't measure himself against anything, really. A performance goal is a target for the work of an employee. By identifying and tracking goals for performance indicators (for example, the KPI of monthly revenue), you can better assess how your firm is performing. 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. Remember that not all KPIs are useful for your firm. 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. The type of practice, firm, and lawyer lifestyle objectives all factor into setting the targets to evaluate these numbers. Measurable. ), 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. These goals are used to evaluate the performance of employees at the end of a performance period. S.M.A.R.T. Trying to measure every performance indicator available is overwhelming, needlessly time-consuming, and counterproductive. Find out which Clio events and CLE webinars are coming up next. 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. Will it bring in more revenue for your law firm? Where do you want it to go? So how do you establish goals that are aspirational but still achievable? 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. 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. October 13-16, 2020. Practical real world examples highlight how the strategic planning process has worked in . Most desire to grow their businesses â add clients, boost their revenues, perhaps take on a new partner, paralegal or assistant. 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. 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. 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. Tracking your NPS can help your law firm find out whether or not clients would recommend your services. Setting both goals and objectives is crucial to establishing the planning process. is a pneumonic device. Try adopting the old management model of “Plan, Do, Check, Act.” Plan to gather the data for your KPIs. 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. You'll also get useful weekly blog updates. 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. 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. We well understand your intention Justice, it’s your first step We’re in your corner! Advantages of Making a Legal Strategic Plan. Getting everyone on the same page will help make your goals more achievable. Itâs a smart move. Nowadays, you hear every entrepreneur and investor saying “KPI”—so much that you might think of “KPI” as merely a buzzword. This post was last updated on November 16, 2020. Do you know which attorney or which client is contributing to or reducing your profits? Or it may be more general growth. For example, your target for the cost of client acquisition depends on the type of law and the return on investment per client. Do you know which marketing expenses lead to the most valuable clients? Personal & Career Goals for Lawyers: A Complete Guide (2020) Is it revenue? Consider these… Read More » New clients are likely to be from small technology firms or start-up companies. Today I’m going to give you a sample law firm business plan, but before we do that, let’s take a quick look at why we even go about putting one together in the first place. A 1 percent year-over-year growth might be mathematically real, but itâs statistically irrelevant. To help guide your goal setting and overall marketing strategy, download the free playbook Legal Marketing 101: A Guide for Small Law Firms. Marketing strategies vary between law firms. 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. 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. Consequently, corporate law departments often share similar business objectives. The idea is to set goals that push you (and your colleagues) to grow. 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. © 2008 - 2020 Themis Solutions Inc. (Clio) |. 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. The purpose of one law firm’s marketing endeavors are not necessarily the same as another’s. 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. Determine if there are any gaps between what you have and what you need. 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.” 1. Specifically, nearly 60% of managing partners reported “adopt(ing) some balanced scorecard practices” or “informally adopt(ing) the 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? Identify what your goals are and how you're going to achieve them. It’s true what they say: What gets measured, gets managed. Executive summary . 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. 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. When developing your law firm marketing plan, start with Why. iX JOhN STERLING is a founding partner of Sterling Strategies, LLC. No sales pitches. Know-how […] Get this free e-book from legal industry expert Mike Whelan, Jr. ... For example, an ecommerce firm that views late deliveries as damaging to the customer experience. Based on insights from the 2017 Legal Trends Report, this guide shows you how to apply them to your firm. Please confirm your Zip Code *An accurate Zip Code ensures your appointment is set with the correct local marketing consultant. While all of these goals are possible when supported by concrete marketing tactics, so many lawyers fail to attain their goals. 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). 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. They offer a marketing framework around which you can build your law firm. Since 1999, we have helped over 18,000 attorneys create successful and sustainable law practices. The purpose of each initiative and activity. Just great advice. And thatâs where setting up clear business goals is essential. If growth is your ambition, you need to make a plan to achieve it. 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. Thoroughly understanding the firm's goals will better help him make decisions for advancing the company. Determine your firmâs actual strengths and weaknesses, then build goals around them. Client Trust Ledger: A statement of activity that shows all of the transactions (beginning balance, deposits in, payments out, and ending balance) for each client. Law Firm Marketing Plan Must-Knows. It may sound obvious or unnecessary, but you should clearly define the purpose of your law firm marketing plan. In that case, you need to define the metric. A 40 percent increase in settlements, for instance, is a goal based on luck. Determine your firm’s actual strengths and weaknesses, then build goals around them. Legal departments do not always lend themselves to… The letters stand for specific, measurable, attainable, realistic and timely. Write them down. 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. 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? An accurate Zip Code ensures your appointment is set with the correct local marketing consultant. 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. SMART Goals for your Law Firm. For instance, you know that social media plays an important role in online marketing. Number of clients? Businesses and law firms alike fail because they pay out more than they bring in. One final note: If youâre not a sole practitioner, make sure you share your goal with all your staffers, even those who arenât attorneys. Instead: How many clients do you want to add? She’s also interviewed dozens of practicing lawyers and leading legal industry thinkers, including Preet Bharara and Bryan Stevenson. Without one, youâll have no urgency and motivation to work toward your goal. While goals for lawyers need to be attainable, they also have to challenge you and be worth setting. Hear how the legal industry is adapting to the COVID-19 crisis. Many law firms all over the United States are coming to the conclusion that the bigger the better for them. 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. Leads? 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. Goals. One way: Be SMART about it. Legal consumers have changed â has your firm’s approach? Or are you doing intellectual property work that can be repeated over the years? UNDERSTAND LEGAL CONCEPTS AND THEIR PRACTICAL APPLICATIONS. Firm Goals and Objectives: Goals are destinations—where you want your firm to be. And you donât have to be a big law firm to put them to work: Specific. ... She has written for law firms, public relations and marketing agencies, science and technology websites, and business magazines. ), 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. Our sales team is available Monday to Friday from 8 a.m. to 8 p.m. EST. Sally J. Schmidt. As you consider that number, keep in mind that it should be something that is doable. The world’s best legal conference—gone virtual. How efficiently are you resolving their cases? One of the more daunting tasks (whether you are general counsel or not) is setting useful goals for the upcoming year. Compliance to laws, regulations, standards and internal policies such as best practices. Photo Credits. To create a law firm whose primary goal is to exceed customer’s expectations. Law Firm Slogans Let me fight for you We will take you through each step till the end. Every firm has to set their own targets before choosing KPIs to measure, because they are unique to your practice. To be able to offer each year some legal services at … A 40 percent increase in settlements, for instance, is a goal based on luck. Key Performance Indicators, or just “KPIs,” are business metrics that evaluate an organization’s performance and success. Donât rely on hoping and wishing. In doing so we were struck by how generically firms described themselves. Make an inventory of the data being collected. Settlements? You may have run across the SMART acronym before. A key differentiator between successful and unsuccessful firms is setting goals, writing […] The very first time I heard of the role of CINO at a law firm … I don’t want free coffee or help acquiring new clients. 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. ... Once you have your goals firm … Once you have a metric, attach a number to it. 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? You can’t measure what you don’t track. Teresa Matich is an experienced legal tech writer and editor.