I listened with interest to Jared Correia’s latest Legal Toolkit podcast with his guest Mary Juetten speaking on the topic of Managing your Law Firm with Key Performance Indicators (KPIs).
Mary has some great suggestions for KPIs that small firms can use to improve their profitability. Two of her favourite KPIs are Net Promoter Score and the Pipeline. Listen to the podcast to hear more.
I often speak to law firms about different ways to increase profitability. The attached article discusses eight good ways to increase profitability. The suggestion to focus on larger, more “institutional” clients that provide regular work is key. Focus on fewer, more profitable clients and service them well. Conduct regular client service interviews and make sure clients are satisfied and achieving their strategic goals using your legal services.
How do you measure success for your law firm? The attached article suggests that you should focus on your clients’ metrics for success instead of your own firm’s metrics such as PPP (Profits Per Partner).
I agree wholeheartedly with focusing on client metrics instead of just your own firm’s profits. If you focus on your client’s success metrics first, then your firm profits will naturally follow.
Read the article. You will find a number of interesting measures that will help you satisfy your clients even more and drive your profits even higher.