Traditionally, tracking metrics and going over the fine details of performance weren’t tasks that legal departments were concerned about. However, as legal operations grow more complex and in-house teams are challenged with balancing costs and increasing workloads, departments are under increased scrutiny.
To save time and reduce costs, more legal departments are keeping track of important metrics to monitor their own effectiveness and use of costly resources. Take a look at the following metrics to improve your legal department management:
Spend to budget
It’s important for legal teams to keep an accurate measure of their legal spend. The spend to budget metric tracks actual legal spending in comparison to the budget.
Tracking this comparison increases accountability for legal teams. Simply put, if the budget is exceeded, there must be an explanation for it.
When costs are controlled, you reduce overspending and set a precedence for what specific matters should cost. This allows your in-house team to resolve over or under budgeting.
Measuring the workload of your in-house and outside legal teams provides an overview of how resources are being allocated efficiently as well as what changes should be made. Staff workload metrics encompass everything from the time spent on matters, how long the average matter is open, and how much each in-house team member is spending on outside counsel.
Spend by matter type
The spend by matter metric allows you to see exactly where your in-house legal department’s resources are going by matter type. Whether it is litigation or labor, being able to see a spending breakdown helps with reallocating resources and labors to matters that are more important.
Evaluations of outside counsel
Evaluating outside counsel and tracking their performance enables you to choose the best counsel for your matters and determine which of your counsels is serving your needs at the best cost. How responsive are they? How well do they know your industry and company culture? Picking the right team can save money and ensure your matters are handled properly.
Determining the value of your in-house and outside teams and showing that the legal department is effectively using resources rather than wasting them can be beneficial to your bottom line as well as reassuring to your stakeholders.
Many legal departments fail to notice costly billing violations when reviewing invoices. The invoice savings metric shows whether your legal department is diligent in checking invoices. If so, this leads to cost savings on legal spend when billing errors are caught and resolved.
Remove the burden of fly-specking invoices from your team with an e-Billing system. And, gain more time back in your day by not having your staff spend precious time checking invoices line by line. Solutions like Acuity ELM’s cloud-based invoicing system provide you with accurate invoice reviews and billing guideline enforcement.
Improving legal operations with Acuity ELM
Inefficiencies in billing, workloads, and staffing can be a significant drain of time, resources, and legal spend in your department.
Acuity ELM offers a suite of software solutions that will arm your legal team with the ability to improve legal operations by managing budgets, costs, efficiencies, and outside counsel spend.
Book a demo today to learn more about how Acuity ELM can transform your legal department.