To be seen as a business partner, legal teams need to drive growth (and show that they do). Successful legal teams measure, manage, and present key performance indicators (KPIs) specifically related to growth to make a case for increased headcount and show all of their team's work.
To showcase your value, you need to know how fast your legal portfolio is growing and in what ways. In this post, we’ll outline six growth metrics to track and present to illustrate your legal team’s contribution to the business.
Growth Metrics
- How many agreements have we added each month/quarter?
What is your topline rate of contract growth?
- How many new agreements became effective in each month/quarter?
How many more contracts do you have to monitor? That matters more than how many historic agreements are on file.
- How many agreements have we added each month/quarter by Agreement Type?
The rate of growth of sales agreements has a different impact than the rate of growth of NDAs.
- How many agreements have we added each month/quarter by specified Term?
What lengths of agreements are you regularly creating, and are you under- or over-committing to those agreements?
- How many agreements had renewal dates within a set period?
How many agreements do you need to review rather than simply allow to continue?
- How many agreements had termination dates within a set period?
How many customers do you need to win back, and how soon?
Partnering With Sales
That’s a lot of agreements. And if you’re at a fast-growing company, many are coming from sales. Thankfully, you can improve your contract process with a strong Salesforce integration.
Back-and-forth emails between legal and sales can get out of control, especially when a big deal is going through many negotiations. With the LinkSquares app in Salesforce, you’ll have agreements drafted and out the door as quickly as possible.
Tracking and regularly presenting these key growth metrics ensures legal teams have the data they need to prove they are a source of revenue – not overhead. Between that and the partnership you’ll create with sales, your legal team will be seen as the revenue-generating heroes that they are.
If you're ready to start your journey towards metrics-driven contracting, contact LinkSquares today.
