Track Your Firm’s KPIs Toward Greater Success

“You can’t manage what you can’t measure.”

Peter Drucker, Founder of Modern Management

A key performance indicator (KPI) is any metric that measures the success of your firm. If tracked properly, each KPI should easily allow you to identify performance.

Look at it this way—tracking your firm’s KPIs is like having a GPS to help guide you toward where you want to go. Just like a GPS, KPIs tell you where you are and allow you to reroute and change course when necessary. Using the data from tracking to refine your KPIs allows your firm to make informed decisions about your goals along the way.

At backdocket, we offer your firm a way to organize KPIs and adjust while keeping everyone on the same page. Read on to learn more about how to approach creating and monitoring KPIs and how practice management software can help.

A Few KPIs Your Firm May Consider Creating and Tracking

• Client satisfaction: Measuring and tracking referrals, client satisfaction scores, stars in online reviews, and other client-associated metrics is at the heart of a firm’s success. Keeping your finger on the pulse of client satisfaction will always serve your clients and ultimately your firm well.

• Productivity: Your team can measure how much time is spent doing certain work. You’ll be able to understand the billable and non-billable hours and adjust to working more efficiently along the way.

• Financials: Setting KPIs on your firm’s profitability is critical to your success. Indicators of billed revenue, collected revenue, firm debt, operational costs, revenue projections, etc., are important to monitor closely and adjust frequently.

• Marketing: Grounding your marketing KPIsin data will help your law firm spend its marketing budget in a way that makes the most sense and leads to meeting goals. Law firms should track metrics on leads, conversion rates, website traffic, email campaign performance, etc.

These are just a few areas where creating and monitor KPIs could lead to consistent growth and a deeper understanding of your business at every stage. It’s important to remember that it’s not necessary to track every KPI, but rather to choose your KPIs carefully to make sure they are achievable and cost effective.

Be Sure Everyone at Your Firm Understands KPIs Clearly

Everyone at your firm (all staff and attorneys) should understand what you’re trying to accomplish and exactly how you plan to measure progress. This is where backdocket’s practice management software can make a huge difference.

To help your entire firm understand what’s being tracked and why, backdocket creates reports that guarantee all KPIs are accessible and actionable. From pie charts to bar graphs, enhancing your staff members’ understanding of the data by engaging them in compelling ways is essential to tracking your firm toward greater success.

Your firm’s KPIs should range from individuals’ progress to the broader aspects of your firm’s operations. That’s why it’s important that everyone plays an active role in the creation and tracking of your law firm’s KPIs.

See How backdocket Can Make Tracking KPIs Easy

The continuous tracking of key performance indicators, such as financial, marketing, business development, number of conversion referrals, client satisfaction, etc., is critical to a law firm’s success. The need for measuring performance has never been more important than it is now in this ever-changing and competitive industry.

Our cloud-based software can make the process of tracking KPIs easy for everyone at your firm. It is customizable and can be shared across all departments, giving every member of your staff access to real-time information. Schedule a demo today if you’re interested in streamlining your law firm’s KPI tracking processes.