Key Performance Indicators (KPIs) are a vital management tool for most modern businesses but -- like nearly all business innovations -- the majority of legal teams have been slow to embrace KPIs. To survive and thrive in the businesses of the future, legal departments need to adopt a "KPI mindset," which includes actually tracking and managing some legal-centric quantitative metrics.
To help facilitate the KPI makeover of your legal team, LinkSquares has developed our newest eBook: "The 20 Key Metrics Every Legal Team Should Track".
Most legal departments view the work they do as qualitative, not quantitative, so the term "legal KPIs" would seem to be an oxymoron. But it's equally true that you can't manage what you don't measure, and to manage your legal resources entirely on "feel" would be a dereliction of your duty.
Moreover, many legal teams struggle to communicate their value to the rest of their organizations, which leads to legal departments being seen merely as necessary overhead, rather than an asset to the business. By adopting a KPI mindset, your legal team can more accurately convey how it contributes to revenues and profits, as well as prove that your department is as rigorously managed as any other area of the company.
So what, exactly, should a legal team quantify and track?
For starters, how many legal agreements are in your company's portfolio, and what is the rate of growth of those agreements? Simply having a hard number for the scale of your legal team's responsibilities indicates both that you are quantifying your work and helps others to understand exactly how much work your team is doing.
If your company regularly drafts sales contracts to close deals, the average time required to draft, redline, finalize and execute a contract is a critical component of the sales team's overall time-to-close metric. If your drafting process is the primary hold-up in closing deals, you need to know that and adjust your staffing levels and processes to improve that KPI. If your contract throughput is healthy, you can defend against any claims that your legal team is the reason deal flow has slowed down.
In "The 20 Key Metrics Every Legal Team Should Track", we clearly lay out exactly which legal KPIs you need to start tracking and explain how those numbers can be used to improve the value and performance of your entire legal department.
If you want to increase the revenue impact of your legal team -- and ensure your company appreciates the bottom-dollar contributions of your entire department -- download "The 20 Key Metrics Every Legal Team Should Track" now.
And if you're ready to adopt the most advanced contract analytics suite available -- one which uses cutting-edge artificial intelligence to put you on the path to a KPI-driven legal operation -- contact LinkSquares today.