Automating invoice review gives you back time. A unified platform gives you back data. With time and data, you can build a law firm scorecard that shifts firm relationships from transactional to strategic.
Getting started
- Do not try to measure all metrics at once. Select 5 to 7 KPIs that reflect your most urgent priorities.
- Choose 1 to 2 metrics from at least three of the categories below. A good starting mix often includes a cost metric, a quality metric, and a collaboration metric.
- Weight what matters. If your CFO has mandated cost-cutting, you might assign a 40% weight to Cost & Predictability. If the business seeks a faster pace, upweight Speed & Throughput.
- Pick what you can measure today. As your data quality and processes mature, you can target those more elusive or sophisticated metrics.
Categories
1. Cost & Predictability
Measures the firm’s financial discipline and forecasting accuracy.
- Invoice compliance rate: percent of invoices that pass OCBG rules on first submission.
- Accrual accuracy: variance between accruals and actual invoices.
- Variance to benchmark: average blended rate compared to market benchmarks.
- AFA performance: variance against the agreed budget or outcome.
2. Quality & Risk
Measures work quality and effectiveness at mitigating risk.
- Outcome quality: rubric-based scoring of results such as settlement favorability, case dismissal, or deal terms.
- Rework rate: percent of deliverables returned for material rework.
- Playbook adherence: percent of tasks completed according to the defined matter strategy.
3. Speed & Throughput
Measures efficiency and responsiveness.
- Playbook adherence: percent of tasks completed according to the defined matter strategy.
- Turnaround time for defined tasks, such as returning contract redlines.
4. Collaboration & Client Experience
Measures how easy the firm is to work it’s level of proactivity.
- Proactive communication score, including status updates, budget-to-complete forecasts, and early risk warnings.
- Internal CSAT or NPS collected through a short quarterly survey.
- Knowledge reuse, such as templates, clauses, or playbook contributions to your internal knowledge base
5. Staffing & Delivery Model
Measures how efficiently the firm leverages its talent.
- Leverage ratio, tracking partner versus associate versus paralegal hours. Set targets by matter or work type to avoid paying partner rates for associate-level work.
- Staffing continuity: measuring timekeeper turnover on key matters. High turnover often leads to rework and loss of institutional knowledge.
Putting it into Practice:
Start a conversation with your General Counsel and key stakeholders. Use this framework to define what “value” means to your organization. The metrics you choose can shape the foundation for every strategic QBR, rate negotiation, and panel decision you make.
