| Key performance indicators are not just applicable to | | | | their computer systems, so they opted to offer part |
| sales oriented organizations, to health facilities, or to | | | | time IT personnel. This goes without them knowing that |
| banks and lending institutions. Even in legal-oriented | | | | the company would actually end spending more on |
| companies or law firms, KPIs are very much in need. | | | | lesser values. |
| Why is this so -- because no CEO will say that opting | | | | This is why it is very important for a company, |
| for higher costs is better, when one can operate on | | | | especially for a conservative and sometimes |
| lower expenses? Unless, of course, there is data that | | | | un-initiative organization such as a law firm, to consider |
| will support the efficiency and effectiveness of the | | | | weighing things and evaluate the performance of each |
| allocation of resources; unless there is a report that | | | | department. KPI or key performance indicators are not |
| produces measurable values; unless managers focus | | | | factors for success, but these are specific areas and |
| on priorities, no CEO will gamble on expensive | | | | activities that are subject for measurement. It could |
| operation. | | | | either be financial or non-financial. But whatever it is, |
| A business organization is never complete without the | | | | KPIs for a law company are a must. There are |
| important cogs in the wheel -- the different | | | | generally eight key performance indicators managers |
| departments. These departments could be the | | | | can draw. These eight KPIs are further categorized |
| accounting, sales, advertising, marketing, collection, billing, | | | | into four: the indicators for service levels, for |
| human resources, legal, and information technology. | | | | customers, for external clients, and for operational |
| More often than not, only a few of these departments | | | | efficiency. |
| are allotted a significant chunk of the company's | | | | Under the KPI for service levels, there are three |
| resources. This is due to the fact that most managers, | | | | indicators: morale and teamwork, turnaround, and |
| directors and even CEOs, decades ago, think that | | | | accessibility. These are usually measured on a one to |
| some of these departments are just petty and require | | | | five scale. The next two indicators are found under the |
| fewer resources. They put lesser values on these | | | | KPIs for customers. These are results and overall |
| sections, not knowing that they actually spend more on | | | | satisfaction. These two are measured using a five |
| less important things, rather than what they believe as | | | | point index. The sixth KPI found under external clients |
| cost savings. | | | | is impact, measured using a three point scale. The last |
| This is where performance management comes in, | | | | two indicators, categorized as operational efficiency |
| and in this part, KPIs or key performance indicators | | | | are: legal services cost and performance of budget; |
| play a big role. See, what business managers perceive | | | | both measured at a three point scale. |
| before as added expenses are now considered | | | | Measuring and managing the performance of the |
| serious investments. For example, having an IT | | | | organization has never been easier, thanks to new |
| department was a subject of debate for the board of | | | | hardware platforms and applications that help analyze |
| directors for companies back in the 70s and 80s. They | | | | values and data accurately. Yet it is clear, that without |
| believe it is not really that important to hire full time | | | | knowing the legal KPI, it is impossible to know whether |
| computer programmers and technicians to maintain | | | | the company has spent more on less or not. |