Metrics are invaluable for providing insight into how a legal department or law firm is doing. Analysis and application of the data is crucial in order to experience real progress. This infographic is based on our recent white paper, Cut Costs and Increase Profits with Legal Metrics. It covers which metrics to track, as well as considerations for how to use and apply these metrics towards your organization’s goals.

1. AFA METRICS
CUT COSTS AND INCREASE
PROFITS WITH LEGAL METRICS
CUT COSTS AND INCREASE
PROFITS WITH LEGAL METRICS
How Corporations and Firms Can Go from
Collecting Data to Taking Action
As the legal industry continues to undergo significant change, metrics are
emerging as a valuable tool for both inside and outside counsel.
are capturing metrics that inform
efficiency decisions
- 2016 LLM, Inc. survey
FOR CORPORATE COUNSEL
asked to cut costs and do more with less, metrics
provide important insight for key decisions and help
manage inside and outside counsel.
FOR LAW FIRMS,
metrics can quantify their success, build stronger
client relationships, and deliver information that is
critical to maintaining profitability and
competitiveness.
SPECIFIC METRICS FOR SPECIFIC GOALS
LITIGATION METRICS
METRICS TO MANAGE
IN-HOUSE COUNSEL
CORPORATE COUNSEL
Metrics can help optimize business and make a firm
more profitable overall, such as by examining litigation.
Metrics can help determine an AFAs
effectiveness and better plan and budget
for future AFA usage.
FINAL THOUGHTS
Metrics to consider if you manage an in-house
law department.
What gets measured,
gets managed.
-Peter F. Drucker
FIRMS
SPEND VS. BUDGET (MACRO LEVEL)
- Spend by firm
- Spend by legal service type
- Firm scorecards / evaluations
- Inside/outside spend as percentage of
revenue
DATA COLLECTION AND CONFORMATION
METRICS
FIRMS' SCORECARDS/EVALUATIONS
RATE METRICS
- Percentage of hours received at discount rates
- Average cost per hour of inside attorney time
ANNUAL SPEND
- By practice area
ALL COSTS SETTLED VS. BID RATE
FREQUENCY OF BID WINS
ACCURACY OF BIDS
SPEND BY TIMEKEEPER (TK) LEVEL
AVERAGE HOURLY BILLED RATES BY
TIMEKEEPER LEVEL
Junk in results
in junk out.
Spend by
matter type
Average cost
of open matters
Outliers in
cycle-time and
budget
Total cost
of outcome
BENCHMARKS FROM INDUSTRY PEERS
EXPENSES FROM LAW FIRM INVOICES
SATISFACTION SCORES FROM CLIENTS
TIME METRICS FROM IN-HOUSE LAWYERS
- Rees Morrison of Altman Weil
ONLY 21% OF CORPORATIONS
AND 17% OF FIRMS
Bottom line: Track
what’s important
to you.
Download the full metrics white paper.
llminc.com/legalmetricsWANT MORE?
60%
of firms and corporations
reported using an AFA for
non-transactional work in
the last 12 months
RECOMMENDED STARTING POINT:
QUESTIONS TO CONSIDER:
Identify where you currently use or keep the data
(business data source + owner), then work towards
how to access that information and CENTRALIZE IT.
How frequently is the data collected?
How frequently is the data reported?
Is there a formula to be applied?
THE NUMBER OF AFAS BEING USED
BY WHAT MATTER TYPE
WHAT PERCENTAGE PER DEPARTMENT OR PRACTICE AREA
WHAT PERCENTAGE OF TOTAL LEGAL SPEND, TOTAL EXPENSES BY FIRM
FOR PARTICULAR GROUPS
WHAT WAS THE TOTAL COST OF OUTCOMES BY TYPE
Have a clear
understanding
of what the goal
is in taking a
specific
measurement
Commit to
proper
collection
Take action!
Use a sound
software
system for ease
of data
visualization