Business & Financial Management

Liam Brown, Founder and Chairman of Elevate Services, Inc based in Los Angeles, shares his thoughts on what to measure and track, when trying to embed LPM.

Liam:

I recommend that the metrics or Key Performance Indicators a firm tracks should change over time during the implementation of an LPM program. I have seen a number of law firms define and measure success using financial metrics such as profitability and leverage for a matter. While I believe that these are important metrics to track in managing a law firm generally, these are lagging indicators, which aren't particularly helpful during the early stages of an LPM implementation. Rather, during the early stage I recommend a law firm monitor forward indicators around adoption, e.g. track what percentage of lawyers update the LPM software each week for those matters using LPM; what percentage of lawyers update the LPM software daily; or what percentage of matters was LPM applied to for those matters eligible for LPM? These provide the LPM program manager with a line of sight into where the LPM program is stalled, early on. Over time, as the LPM program embeds in the law firm, these KPIs should move from adoption towards financial metrics.

Ah the power of the right data and measuring what you need to know not just what is easy(ier) to measure. Thanks very much Liam.

Remember to keep following as we ask our global industry leaders the hard question- What does it take to successfully embed LPM in a law firm?”

Until then,

Michelle