Stop Watching the Scoreboard: 5 Law Firm KPIs That Actually Drive Growth
- TLTurner Group
- Jun 20
- 4 min read
Updated: Jun 26
Game Time: What Basketball Can Teach Us About Law Firm Strategy
Picture this: It’s Game 6 of the NBA Finals. The Oklahoma City Thunder are down by five with just under four minutes on the clock. Coach Mark Daigneault calls timeout. He doesn't pull out the scoreboard. He pulls up player stats, shot charts, fatigue metrics, and matchup data. Then he says:
"Here’s what we do next."
It’s not luck. It’s strategic adjustment based on real-time data.
Now imagine you’re running your law firm the same way. You check your profit and loss report once a quarter, glance at your bank account, and wonder if you're "winning."
That’s the equivalent of a coach who only watches the final score.
And let’s be clear: You don’t win a championship by watching the scoreboard. You win it by mastering the game plan, tracking the right numbers, and adjusting before the buzzer.
The Scoreboard is the Past. Strategy is the Future.
In basketball, the scoreboard tells you how many points you have after the shot is made. It doesn’t tell you why your shooting percentage is tanking or why your starting center is getting beat in transition.
In law firm finance, your profit and loss statement is the scoreboard.
It tells you net income, total revenue, total expenses. But it doesn’t tell you:
Whether your pricing is sustainable
How efficiently your attorneys are working
If your marketing strategy is bringing the right clients
Whether your collections process is leaking cash
It’s a history lesson—not a playbook.
So let’s build your Starting Five KPIs. The real metrics that drive performance before you check the score.
Meet Your "Starting Five" Law Firm KPIs
Let’s run out onto the court. Lights up. Defense tight. This is your starting lineup:
1. Revenue per Attorney (RPA)
On the Court:
Imagine your star player putting up 15 points in 40 minutes. The team may win, but the individual contribution is lagging.
In Your Firm:
Revenue per Attorney = Total Revenue ÷ # of Attorneys
This shows you the productivity and revenue-generating efficiency of each lawyer.
Real Play:
If one associate brings in $500K a year and another brings in $200K, but their salaries are nearly identical, you’ve got a serious imbalance.
Pro Tip:
Track this monthly. Use it to drive accountability, allocate bonuses, and make hiring/firing decisions.
2. Utilization Rate
On the Court:
If your point guard spends more time on the bench than the floor, stats will suffer—no matter how skilled they are.
In Your Firm:
Utilization Rate = Billable Hours ÷ Total Hours Worked
It measures how much of your team’s time is spent on work you can actually bill for.
Real Play:
A paralegal logs 40 hours a week, but only 10 are billable. You’re paying for 75% of their time to go to waste.
Pro Tip:
Set targets. For example, 70-80% for attorneys is a strong goal. Then identify tools or tasks you can offload to increase efficiency (hello, automation).
3. Client Acquisition Cost (CAC)
On the Court:
Your team spends 10 possessions just to get one clean shot. That’s inefficient offense. Same goes for marketing.
In Your Firm:
CAC = Total Marketing + Sales Spend ÷ # of New Clients
It tells you how much it costs to land one new client.
Real Play:
If you spent $10,000 on ads and got 4 clients, your CAC is $2,500. If your average case value is only $2,000, you’re losing on every deal.
Pro Tip:
Use this KPI to trim marketing waste. Double down on what converts best (e.g., referrals, webinars, SEO), not just what gets clicks.
4. Realization Rate
On the Court:
You shot the ball. It didn’t go in. Doesn’t matter that it looked good. You get 0 points.
In Your Firm:
Realization Rate = Billed Amount ÷ Collected Amount
This tracks how much of what you invoice actually ends up in your bank account.
Real Play:
If you billed $100K last month and only collected $75K, that’s a 75% realization rate. You did the work—but 25% of your effort went unpaid.
Pro Tip:
Improve collections by:
Enforcing payment policies
Offering payment plans
Switching to upfront retainers
Assigning a team member to monitor AR weekly
5. Overhead as a % of Revenue
On the Court:
A bloated bench, overpriced gear, unnecessary travel—you’re burning money on non-performance assets.
In Your Firm:
Overhead % = Total Overhead Costs ÷ Total Revenue
This tells you how much of every dollar is eaten up by fixed costs.
Real Play:
Spending $70K on rent, software, admin, etc., with $200K revenue? Your overhead is 35%.
Pro Tip:
Cut tools that aren't used. Renegotiate vendor contracts. Share support staff across attorneys. Don’t sacrifice quality—but keep lean to stay profitable.
Visualize It Like a Coach
Here’s a sample dashboard layout you can sketch:
KPI | Target | This Week | This Month | Notes |
Revenue per Attorney | $500K/year | $8,300 | $35,000 | On pace |
Utilization Rate | 75% | 72% | 68% | Training needed |
CAC | <$1,500 | $1,800 | $1,200 | Trim ad spend |
Realization Rate | >90% | 95% | 88% | Client XYZ late |
Overhead % | <30% | 28% | 32% | Cut SaaS by July |
Coach Your Firm, Don’t Referee It
Too many firm owners act like referees. They react when there’s a foul (low cash flow, angry client, missed payroll).
You need to be the coach:
Watch the tape (review your weekly numbers)
Call plays (delegate and adjust)
Run drills (train your team)
Track stats (use KPIs that matter)
Don't just celebrate the win. Understand what got you there.
Read Like a Champion
Book of the Month:
The Score Takes Care of Itself by Bill Walsh
If you want to instill a performance culture at your firm, this book is a must-read. The legendary 49ers coach shares how systems, standards, and habits drive winning results.
"When you build a system designed to win, the score takes care of itself." — Bill Walsh
Final Word
“If you don’t track the right stats, you’ll celebrate wins you don’t understand—and repeat losses you didn’t see coming.”
Law firm finance doesn’t have to be a mystery. It can be your greatest strategic advantage.
Just stop watching the scoreboard—and start coaching to win.
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Let’s build a championship firm, together. ---
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