LawFirm KPI




A dashboard is a snapshot of important indicators from your financial statements and related reports, which can help you see how the various elements relate and form patterns. Many law firm accounting applications offer a module that can produce dashboard reports, providing a focal point that makes information from a variety of sources readily accessible to management.

Law firm dashboards can run the gamut in sophistication, but in its basic intent, a dashboard for a law firm follows the same principle as the dashboard in your car. Perhaps the more important analogy is that you can’t drive your vehicle by solely watching your dashboard—rather, it helps you know how well you are progressing toward your destination.

Developing a dashboard using KPIs can help your management team pull away the long grass and pay attention to what is important. For example, if your firm develops a strategic focus on specific client relationships and supports that focus with client teams, then good KPIs for measuring the breadth of the relationship are (1) the number of matters per client, (2) the number of practice areas that serve these clients, and (3) the number of lawyers with time on matters connected to this client. Here’s why:

  • The number of matters is an indicator of growth in the client relationship.
  • The number of practice areas is an indicator of cross-selling success.
  • And the number of lawyers is a measure of the breadth and depth of the relationships between your firm and the client.

All of these are quantifiable and measure progress toward the firm’s goals.

Read our article Key Performance Indicators: Understanding How to Keep Your Eye on the Dashboard to learn more.


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