By using key performance indicators, law firms of all sizes can measure and analyze profitability and financial success to help indicate what should be done in the future of running the firm by informing strategic decisions.
Mary Juetten, founder of Traklight.com and author of Small Law Firm KPIs: How to Measure Your Way to Greater Profits, discussed how to use KPIs, their benefits and exposed the number lawyers in the room who don’t use this tool to help with understanding and predicting their earnings, during her presentation called “Being profitable: Measuring what matters to your bottom line,” given at the Small Law Firms and the Business of Success event at Thomson Reuters in Toronto Nov. 2.
“It’s just a measurement. It can be as simple as how many billable hours you had in the past month,” she said. “I wrote a book … it has 41 KPIs in it. In no way shape or form should you start with all 41. Start with where your pain points are.”