Law Firm or Legal Department KPIs and Scorecard Implementation

We live in a world where numbers matter. Modern technology has made it possible for us to quantify every step of our business processes. With the use of our sample KPI for legal departments or law firms, your business will be able to track distinct pieces of data that reflect performance and expenditure of time and money.

In a law firm, being able to see the numbers and percentages behind the business is key to success. Modern clients and organizations expect their lawyers to deliver valuable advice in a timely way. Companies rely on the information they get from their legal counsel to make decisions that impact their bottom line.

Sample KPIs to Streamline Your Legal Department

Scorecards and KPI for legal departments reflect objectives that can be continuously evaluated and used to challenge and correct subjective views on performance. The following are sample KPIs for legal departments that law firms can also consider when looking at streamlining their practice.


Getting new clients is essential for any law firm to grow. Examining operational KPIs can help you see if the new clients you are acquiring add value to your firm. You can separate clients that add a financial burden to your business from those who require little time and money but produce revenue.

  • The Cost of Acquiring a New Client: Getting a new client requires money and time. You must market and pitch to them. It is essential to develop a clear understanding of what clients are worth the time and expenses involved in adding them to your firm.
  • Frequency of Billing: What is your firm’s realization rate? Billing can be an arduous task. Do the numbers show that billing is exceptionally difficult for your firm? Does your firm bill regularly? Are your clients haggling with you over fees? Is this causing you to reduce fees regularly?
  • Time Versus Money: How many billable hours does each client bring in? How does this compare with the staff needed for the client? What percentage of your billable hours are your lawyers able to recover from your clients?

If you don’t have this key data, finding solutions to operational problems will be a guessing game. The right data will help you identify problems, pinpoint solutions, and then evaluate how the changes you are making can improve operational outcomes.


Much of marketing is done digitally, so it can be tracked, quantified, and evaluated. Reviewing marketing KPIs allows a law firm to go from vague estimates to a clear picture of whether their sales and marketing goals are truly being achieved.

  • Social Media Engagement and Reach: How many people find your law firm using social media? For those who do, what content attracts them the most? Not all social media is created equal. Compare the results from various social media platforms to determine which leads to the most conversions. Test where you are investing when it comes to social media to determine which platforms are producing the best ROI.
  • Client Acquisition Cost: When marketing for your law firm, separate potential customers from actual clients. Evaluate how much you are spending to convert potential customers to clients. Include money spent to attract your target customers and marketing and research expenses. Under budgeting happens if you don’t measure your data accurately. Customer acquisition costs should be evaluated after each marketing campaign and adjustments should be made. Separate the customers you require from organic reach and paid reach and put a dollar amount on each to determine where your money is producing the best results.
  • Lead Conversion Analysis: Evaluate previous marketing campaigns to determine the number of leads converted. How many leads became paying clients?
  • Landing Page Conversion Rates: How regularly is your landing page generating conversions? This information can help you evaluate how clearly you are communicating the action you want your leads to take when they visit your website. Is your landing page encouraging visitors take the actions you want them to? Is the information on your landing page clear and concise?
  • Average Conversion Time: How long does it take to convert leads to paying clients? This simple KPI for legal departments reveals the effectiveness of your law firm’s sales practice. If it takes a long time to convert leads, this could signify that prospects quickly lose interest in the services you offer and are opting to use the services provided by your competitors. Determine if time-sensitive discounts and promotions can be used to expiate sales.
  • Remarket: Remind your existing client base of all your services. Periodically evaluate the ability to hold your target’s attention, and the effectiveness of your sales process.

Using a sample KPI for your legal department’s sales and marketing will give you actionable insights that can affect change. It will give you the tools needed to create powerful digital marketing strategies. These will permit you to respond to changes in customers’ behaviors and market trends.


It is easy for busy lawyers to focus on taking care of the business. The goal is to get stuff done daily. However, if a law firm cannot monitor its financial KPIs, it is difficult to determine if they are actively reaching all their financial goals or if there is room for improvement.

It’s difficult to know what information to process, especially if KPIs are a new thing to you. It’s recommended that you start by asking these questions:

  • What are our future financial goals?
  • How much revenue does our law firm need to meet its goals?
  • How many new clients is my law firm able to take on each month?
  • Monitor the financial health of your firm. How much is your firm growing financially each month? Evaluating this will allow you to make decisions, create new goals, and redirect your efforts. Then you can use these KPIs to reach your goals.
  • Profit Percentage: Strive to keep your profit margin rate between 35 and 45 percent. Determine if profit margin percentages require you to hire more people, improve technology, or increase office space.
  • Accounts Receivable over 30 Days: How much cash do your clients currently owe you? What percentage of your customers are consistently late paying their bills? The fewer accounts receivables you have over 30 days, the more cash you will have to use in your firm.
  • Cash on Hand: How much cash does your firm have in its bank account? How much cash does it have in its petty safe? Do you have sufficient cash for between 30 and 90 days of operating expenses?
  • Labor Percentage: What is the overall payroll expense for your firm compared to your gross sales? If it is over 33 percent, identify ways to reduce it.
  • Realization Rate: What percentage of your fees are you collecting during the month? If it is under 95 percent, identify ways to improve the turnaround time.

Implementing KPIs in your legal department

Once you have identified what your goals are, measure weekly, and compare your data from week to week. It’s important to create a coherent system for updating, tracking, and selecting who will monitor your progress.

Create Personalized Scorecards with Fusion CPA

As an Atlanta-based accounting firm, we understand numbers and how they can impact the future of your law firm. Plus, we regularly work with KPIs in our firm and help other businesses implement scorecards.

Fusion CPA would be happy to help you get a better understanding of your law firm’s KPIs and how to track them.

Fusion CPA can give you a clear vision of your current standing and plot a course for the future by implementing personalized scorecards

We have the team and the expertise to streamline legal department KPIs