One of the most significant changes in the profession in recent years has been the increased focus on metrics, particularly by law departments. At the same time, others have wondered aloud (or silently) what metrics are worthy of attention. To help address this, we’ve undertaken a project to identify the universe of metrics law departments and law firms might consider, to be followed by a qualitative assessment of the metrics contained on the list. We welcome input, so if you have a metric that you think should be included on this list, send an email to patrick.lamb@valoremlaw.com. Be careful though -- he'll be a fan of yours for life.
Metric |
Description |
Comment |
---|---|---|
Cycle time |
Number of days a matter is open |
Longer cycle time correlated to higher fees |
Performance to budget |
How close is the fee to budget, both plus and minus |
Need to protect against people inflating budgets to always “come in under”. |
Results to predicted outcomes |
Accurate prediction of outcome allows better earlier decisions |
Decision trees are a useful tool |
Timely work completion |
When work plans are created and dates of completion are recorded, completion should be tracked |
Allows evaluation of the reliability of planning process |
Percentage of holdback buckets awarded |
This is not the percentage of the amount of holdbacks but instead the raw number. |
Higher percentage is indicative of widespread client satisfaction |
Percentage of holdbacks awarded |
This is a raw dollars percentage that can exceed 100% |
Reflects bonuses and premiums actually paid |
Re-engagement percentage |
The percentage of clients with on-going matters that retain lawyer/law firm for further matters |
Client satisfaction indicator (Law firm version) |
Re-use index |
1-5 scale on how inclined the client is to re-use the lawyer/law firm |
Subjective |
Recommendation index |
1-5 scale on how inclined the client is recommend lawyer/firm to colleague or friend |
Subjective |
Creativity Index |
Requires client to assign a score on lawyer’s creativity in solving problems, structuring settlements, providing strategy ideas, etc. |
Not really susceptible to excessive refinement. Suggest Good/Bad/Neutral or something equally broad |
After Action Ratio |
Percentage of matters on which firm provides after action assessment |
Can be modified to count only those that are considered valuable |
Quality of Advice |
1-5 scale |
Subjective |
Quality of Written Product |
1-5 scale |
Subjective |
Quality of Outcomes |
1-5 scale |
Subjective |
Wins v. Losses |
Numerical law firm score for trials, arbitrations, contested proceedings |
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Effective disaggregation |
1-5 scale |
Subjective |
Collaboration |
Number of events per month |
An event would be two or more people meeting to discuss the case, brainstorm about strategy and tactics, and similar discussions yielding value for client |
Average team seniority |
Higher average means more experienced team, which is what you want on most non-hourly engagements |
|
Transparency Index |
1-5 on how transparent work, work product, planning and strategy is to client |
Subjective |
Total Value Index |
1-5, Factoring in all metrics weighted in whatever manner client sees fit |
Subjective |
Average number of timekeepers per matter |
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Average years of experience per matter |
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Average billing rate per matter |
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Ratio: Fees to Disbursements |
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Number of fixed fee matters on which changed fee is requested |
Should be 0. |
If not, the reasons should be carefully considered. |
Percentage of law firm revenue derived from non-hourly fee structures |
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Percentage of law department spend spent on non-hourly fee structures |
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% of claims resolved within 30 days of claim (pre-lawsuit, by claims handler) |
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Purely internal to law department |
% of claims resolved within 180 days of service of lawsuit |
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Legal spend per revenue |
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Law Department |
FTE/revenue |
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Law Department |
Net average hourly rate—law department |
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Net average hourly rate—law firm |
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% of external spend on diverse lawyers/firms |
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