What to Know Before Using Legal Scorecard

For companies whose nature of business is concerned about legal activities, it is always top priority to measure performance as part of the execution of the firm’s core strategy. Every corporate leader knows that in order for a business or an organization to thrive, it must be able to operationalize or materialize its goal through strategic actions. However, acting out a strategy is never more effective without the use of scorecard system. But there is more to just adopting a legal scorecard. Learn how to plan.

Scorecards are the missing links between execution and strategy. Before, it was a trial and error process for legal-oriented companies to track performance. But now, through the aid of sophisticated and dedicated computer servers and highly intuitive software applications, it is easier than ever to see if the company is in the right direction. The process however does not end in procuring high end tools. The most important part in the process is the identification of the right measurement indicators. These are factors that are crucial to the success of the company’s strategies, factors that will clearly define the true function of shareholders, referral sources, attorneys, and even customers.

A strategy is actually more than just a plan. For a law company, it is the directional definition, a process that identifies which area or aspect the company should improve, do extremely well, and justify itself. The scorecard system, simply put, will help law companies carry out these directional processes. In order for the managers to effectively identify the indicators, here are some guide questions.

First, the managers need to ask “what are the areas that the company need to measure?” By answering this question, the managers will be able to determine what kind of reports they will be furnishing to different departments and leaders. It will help them decide if a report should be made company-wide or on the management level only, available only through a specific practice group, equity partner specific, or employee specific.

The second question to ask is “what areas should be measured through public sources and proprietary sources?” By answering this question, the managers will be able to obtain a comprehensive overview of how the company is doing in terms of strategic execution. It is basically just asking “are our activities or operations still aligned with our goals?” In connection with this, the managers will get an idea as to which type of data gathering practice they should implement in order to trace the operations, finances, clients, and people.

The third and final question is “should the company measure performance based on where the company is directed?” By answering this question, managers will be able to decide whether they should stick to strategy-related metrics or key performance indicators or consider other dimensions like customer satisfaction, internal business processes, financial measures, and human development measures.

By reviewing and dealing with these self questions, it will be easier for law firm managers to track the organization’s performance. By answering these questions, managers can focus on important indicators, rather than spend time on factors that produce results which are not really that significant. Remember that planning is still important when implementing a legal scorecard system.