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March Madness: The Final 4 Law Firm KPIs That Win the Game

 




March Madness isn’t just for basketball. If you're a Law Firm owner, it’s time to channel that same ‘bracket energy' into something that could make or break your business: your KPIs.


Running a successful Law Firm isn’t about guesswork. It’s about smart strategy, and few tools are more powerful than Key Performance Indicators (KPIs). 


We took over 60 KPIs and created our own version of a bracket challenge. The goal? Find the Final Four KPIs that have the biggest impact on Law Firm success.


Ready to see which KPIs made it to the championship round?



The Final Four Law Firm KPIs


1. Average Case Value


Why it matters: 


You can be flooded with cases and still struggle with cash flow. 


The culprit? 


Low-value cases eating up time and resources. When you track your average case value, you can make strategic decisions about which types of cases move your firm forward—and which may be dragging it down.


Pro Tip: Watch your case mix. Pro bono and low-fee work have their place, but too much of it can sink your margins.



2. Employee ROI


Your team is your most valuable asset. But are they generating value?


Calculate Employee ROI by comparing what you pay your legal staff to the revenue they generate. As a baseline, aim for a 3x return. That means if someone costs you $100K annually, they should be helping generate $300K in revenue.


Why it matters:


  • 1/3 covers their pay and benefits.

  • 1/3 covers overhead.

  • 1/3 contributes to profits and future growth.



3. Average Weekly Revenue


Looking at monthly revenue is like checking the scoreboard after the game is over. Weekly revenue tracking gives you a chance to course-correct during the game.


Why you need it:


  • Expenses go out weekly. So should your revenue insights.

  • If you invoice late, you get paid late.

  • Weekly tracking helps you spot problems and respond fast.



4. Cash on Hand


Cash is king. It keeps your doors open and your team paid.


To understand your runway, divide your cash on hand by your average weekly expenses. This gives you the number of weeks you can survive without new revenue.


Example:


  • $20,000 cash on hand ÷ $5,000 weekly expenses = 4 weeks of buffer


If that number scares you, it's time to get proactive with billing and collections.



Build Your Winning KPI Strategy


You don’t need a full bracket of 64 KPIs to run a winning firm. But if you want to:


  • Increase profitability.

  • Make smarter hiring decisions.

  • Avoid cash crunches.


…then these Final Four are a slam dunk.



⚡ Let’s Take Action


Want help tracking, analyzing, and improving your Law Firm’s KPIs? That’s what we do!


Book a free consultation with the TLTurner Group to learn how our Data Analytics, Law Firm CFO or Bookkeeping services can make your numbers work for you.



TLTurner Group | NY Times Featured Accounting Firm"We Make Finance Less Complicated, Especially for Law Firms."




 
 
 

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