Key Performance Indicators - An Introductory Guide

Introduction

Law firms of all sizes should calculate and track indicators of their performance and health. The most successful firms use these indicators to assist in making important business like decisions, in motivating and aligning behavior, and in adjusting to the new realities.

The challenge is to identify those specific indicators that are critical to the short, medium and long term success of your individual firm and then focus on them. Throughout this guide we will refer to this subset of critical indicators as key performance indicators ("KPI").

A couple of important contextual points:

• It is unlikely that any firm will use all of the KPI identified in this guide; and