Take a data-driven approach to understanding your firm’s health and progress towards your goals in the new year.

1. 2022 in Review: What's Working
for Your Firm and What Isn't
Hosts: Nefra MacDonald & Joe O’Donnell

2. Housekeeping
● Session length: 60 minutes
● Recording & slides emailed tomorrow (*CLE is only available for the live session)
● Use to engage with fellow webinar attendees and select “Everyone”
● Use to ask questions directly to panellists
● Please fill out the survey at the end of the session

3. CLE / CPD Information
To qualify for credit, you must:
1. Be logged in on your own device under the email/name you registered with
(cannot share logins).
2. Attend the entire live webinar.
3. Participate in the polls during the live session.
*If you have met the participation requirements, you will receive a personalized
CLE/CPD affidavit from mcle-clio@americanbar.org for the webinar you attended
to completion. Please check your spam or junk folders as these emails often end up
there. Please note you have to fill out an affidavit for each individual webinar. Once
you complete the affidavit, you will be able to download your certificate(s) of
attendance and they will be emailed to you as well from
mcle-clio@americanbar.org.

4. Sr. Manager, Strategic Engagement
4
Nefra MacDonald
TODAY’S HOST
nefra.macdonald@clio.com

5. Sr. Technical Engineer & Instructor,
Terrapin Technology Group
5
Joseph O'Donnell
TODAY’S HOST
joe@terrapintechnology.com

6. 6
Agenda
● Introductions
● Evaluating firm performance
● KPIs
● Tools and tech
● Change management
● Additional resources & polls
● Final Q&A

7. Evaluating Firm
Performance

8. Examples of Areas to Evaluate
● Overhead
● Billing and Collections
● Productivity
● Marketing

9. What gets
measured gets
done.
Peter Drucker

10. KPIs

11. Factual vs. Anecdotal Data
Quantitative vs. Qualitative Data

12. Key Performance
Indicators
The what and the why?
● A set of metrics that are
quantifiable over time
● Measurable values used to
evaluate how successful an
organization is at reaching a
target
● Provides a clear target for
teams, milestones to gauge
progress and insights to make
better decisions

13. Key Performance
Indicators
What does good look like? ● Measurable
● Actionable
● Aligned
● Simple

14. What are your goals?
What results are you trying to drive?

15. How to choose the
best KPIs for your
firm

16. What do you need to measure?

17. What data do you already have?

18. What are your targets?

19. Productivity and
Individual
Performance KPIs

20. ● Number of billable hours
● Ratio of billed hours compared to
non-billable hours worked
● Number of unbilled days
● Number of uncollected days
● 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)
Productivity KPIs

21. ● Monthly expenses
● Average bill rate
● Average work rate
● Percentage of partner hours
● Number of matters opened
● The number of billable hours per legal
assistant
● Number of matters referred to the firm
● Originating revenue referred to the firm
● Number of tasks completed
Individual
Performance KPIs

23. Utilization

24. Realization

25. Collections

26. Benchmark Data

30. Does your firm track
utilization, realization
or collection rates?
a. Yes
b. No
c. Iʼm not sure

31. Marketing and
Client KPIs

32. ● Number of marketing actions taken
● 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)
● Firm website traffic
● Email marketing performance
● Website landing page conversions
Marketing KPIs

33. ● Cost of acquiring a new client
● Number of new cases/matters opened
● Number of new clients
● The number of new clients by source
(referral, website, review site, etc.)
● Estimated average value of each new case
● Number of consultation appointments set
● The number of potential new clients who
showed up to their consultation
appointments
● Number of potential clients converted into
clients
Client Acquisition
KPIs

34. ● Number of cases/matters closed
● Average value of cases closed
● Client growth rates
● Dormant client rates (the ratio of clients with
no recent matters to the number of total
clients)
● Average fee per client
● Average fee per new client
● Growth in fees for top clients
● Practice areas per client
● Number of lawyers per client
● Number of matters per client
Client Development
KPIs

35. ● Number of client referrals
● Client satisfaction scores (this could be
through a manual survey or software)
● Client retention rates
Client Satisfaction
KPIs

36. Firm
Performance KPIs

37. ● Revenue billed per month
● Realization rate (amount billed as a proportion of
number of billable hours worked)
● Revenue collected per month
● Collection rate (amount collected as a proportion of
the amount billed)
● Amount of firm debt (lines of credit, credit cards,
loans, etc.)
● 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 monthʼs costs)
● Difference between your current run rate and current
anticipated annual costs
● Operating account balance
● Amount of accounts receivable (AR) outstanding
● Age of accounts receivable
● Net income as a percentage of revenue
Financial KPIs

38. Steps to Using Law
Firm KPIs

39. Using KPIs to
your
Advantage
1. Pick KPIs
relevant to
your firm’s
goals
2. Set
targets
4. Measure
the results
5. Make
decisions
3. Track
data for
each KPI
6. Repeat
the cycle

40. Reporting Tools

41. Reporting Tools
Growing firms are twice as likely to use
firm reporting tools

43. Clio Manage KPIs

44. Other Firm Reports

46. Clio Grow

47. Other Tools for KPI tracking

49. Data Cleanliness

50. What is data
cleanliness?
● Consistent formatting
● Clear understanding of what kinds of data go
into which fields
● Rules and permissions for when and how
data points are filled out
● Duplicate and redundancy management
● Continued monitoring for compliance and
training opportunities

51. How to track better
data
● Understand your different data sources
● Use common language within your firm
● Define your data points in a glossary or data
dictionary

52. Using KPIs to Drive Improvements
● Determine an area you want to improve
● Understand the KPIs that help to monitor the progress toward your goal
○ Measurable
○ Actionable
○ Aligned
○ Simple
● Make sure your data is consistent and clean
● Look at your KPIs regularly
● Manage Change

53. Change
Management

54. What did you struggle
the most with in
regards to change
management:
a. Communication
b. Deployment
c. Training
d. Other (share in chat)

55. Change Management

57. Good Communication & Work the Problem

58. Danger of Buy Now, Pay Later

60. Takeaways slide
❏ Good communication is key to understanding
❏ Seek feedback and use it
❏ Let people be part of their solution
❏ Have a small, targeted test team
❏ Donʼt let training go “past due”

61. 61
Additional Resources
& Polls

62. Clio Manage
Legal practice management software
Our most popular product—the industryʼs leading solution
to help manage clients, organize cases, and automate tedious
tasks like getting paid and month-end billing.
Clio Grow
Client intake and legal CRM software
Standardize the client intake process with online intake
forms, email automation, and e-signatures to build strong
relationships, and get powerful data insights to grow your firm.
Lawyaw
Advanced document automation
New software for solo, small- and mid-sized legal practices that
streamline information gathering and document assembly with
programmable templates, built-in e-sign and other features.
Clio’s Offerings

63. Website Builder
With Clio Grow, you can create a professional website
without having to learn to design or code in a matter of
minutes.
Text Messaging
With text messaging you and your clients have a
convenient way to answer questions and share updates
without needing to give out your personal number. All text
messages, including media files like images and videos,
are saved in one organized place
Clio Payments
Clio Manageʼs new online payments platform makes it
easy for your clients to pay online anytime, in compliance
with trust accounting rules and without the need for a
third-party payment processor. Clio Payments is available
will all subscriptions in the US and Canada
Visit clio.com/features/whats-new to learn more.
What’s New In Clio

64. Polls: Participate to win a SnapScan!
Poll 1: For Non-Clio Users
Would you like to learn more about:
a. Clio’s offerings
b. Clio Cloud Conference
c. No, I’m not interested or already
use Clio
64
Poll 2: For Clio users
Would you like to learn more about:
a. Adding Clio Grow for client intake
b. Adding Clio Payments
c. Clio Cloud Conference
d. No, I’m not interested or already
use Grow/Payments

65. Clio Customer Exclusive -
Join us for 5 Days of Giving!

66. Additional Resources
66
● Webinar today at 12:30 PT/3:30 with LawKPIs: Run Your Firm as a
Successful Business
● Dec 13, CLE-eligible Webinar: Legal Tech Roundup: Tools and Services
Your Firm Needs in 2023
● Jan 5, CLE-eligible Webinar: How to Refine Your Law Firm Business
Model
● Guide: 62 Law Firm KPIs You Should Measure
● Clio Cloud Conference, October 9-10, 2023: Get your discounted pass

67. 67
Questions

68. CLE / CPD Information
To qualify for credit, you must:
1. Be logged in on your own device under the email/name you registered with
(cannot share logins).
2. Attend the entire live webinar.
3. Participate in the polls during the live session.
*If you have met the participation requirements, you will receive a personalized
CLE/CPD affidavit from mcle-clio@americanbar.org for the webinar you attended
to completion. Please check your spam or junk folders as these emails often end up
there. Please note you have to fill out an affidavit for each individual webinar. Once
you complete the affidavit, you will be able to download your certificate(s) of
attendance and they will be emailed to you as well from
mcle-clio@americanbar.org.