Canadian Lawyer

20 F E B R U A R Y 2 0 1 8 w w w . C A N A D I A N L a w y e r m a g . c o m t's long been expected that when partners at Willms & Shier Environ- mental Lawyers LLP sit down for their monthly meetings, they see in front of them a double-sided piece of paper they consider a valuable tool in the overall operation of their firm. Co-managing partner Marc McAree calls it a "financial dashboard" of key performance indicators (what are known as "KPIs"). His goal is to present a snapshot of the financial health of the firm on that single sheet so that the partners of the Toronto firm can absorb it all within five minutes and then have a good understanding of where the firm is heading and what needs to be improved. He sees it as an efficient way of providing financial transparency "Roughly 15 years ago, before key performance indicators were even known to be KPIs, our firm was work- ing with our accountant who is also a very business-minded advisor and we began to develop these measurements, these tools. And we have, over the years, refined and matured the use of KPIs," he says. "It's an indispensable financial tool at our firm." Some indicators may be common from one firm to the next. But each firm's needs differ, depending upon its structure, where it is in its growth, its goals and objectives and if there are particular areas of interest or areas undergoing change. Billable hours and income is what firms had typically looked at to gauge their operations. But models from other businesses have seeped into the busi- ness side of law, including KPIs. Stephen Mabey, director of Windsor, N.S.-based Applied Strategies, which does consulting for law firms, says KPIs have become more sophisticated in degree and level. Software can simplify the process and generate the reports. Although software isn't necessary, a spreadsheet will do the trick. "KPIs at their best should give you a sense of a doorway you need to go through," he says. "In today's world, where percentages can make a big dif- ference both in retaining lawyers and attracting laterals, you really need to be on the top of your game. So the degree of sophistication has had to increase as markets have gone flat, as competition has increased. "I don't know any company, if you go outside the legal profession, that doesn't have its benchmarks and its key perfor- L AW O F F I C E M A N A G E M E N T By Marg. Bruineman FAYE ROGERS Measuring your firm's success Key performance indicators, when done right, should offer a quick snapshot of how to better run your law firm I

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