Extract from Jim Gill’s article “Legal Operations and KPIs: Where to Start”
In a recent Above the Law article, Mike Quartararo, President of ACEDS, said, “You want to know why the billable hour is so entrenched and not going anywhere any time soon? It’s because it provides a direct, measurable metric or benchmark for the value of a lawyer to a law firm.” But it seems the billable hour is pretty much where it stops – for now – when it comes to KPIs. He continues, “Few, if any, firms are tracking the type of work, and none that I’m aware of are looking at the quality of the work (at least not in any systematic way).”
In parallel, tracking and measuring outside legal spend becomes the standard KPI for corporate in-house legal teams. But if this is the only metric, then the legal department will more than likely remain a cost center for the organization.