KPIs (Key Performance Indicators) are measurable/quantifying values of the most important objectives of your business which will let you know the real/actual status of your business. Without these, you will be in complete darkness and won’t know whether your efforts are in the right direction and what needs to be changed.
Managing and tracking your case pipeline is crucial to understanding the state of your business.
A full pipeline is obviously the goal, but how do you know if this is the case for your firm?
Sounding the alarm too late?
If you’re not tracking from the beginning then you only realize you’re down on your number of cases when your revenue dips one month, this is far too late. This is like sounding the evacuation alarm once the earthquake has actually started.
Early Warning Signs:
So what are your early warning signs? These are your KPIs at the beginning of your pipeline. You should be tracking inquiries, pending prospective clients, and various stages of intake. That way, as soon as inquiries dip, you can investigate why and remedy the situation before it affects your bottom line.
When you consistently track your pipeline at all stages you will know in advance if you have more cases in the pipeline and can manage your staffing accordingly. It would be a shame to turn down cases because you didn’t effectively track your case pipeline. Additionally, you can begin to establish the annual trends for your firm – this can help you better manage your marketing, your team’s holiday requests, and your hiring strategy.
KPIs you should begin tracking to better manage your pipeline are:
- Number of new client case inquiries for the month
- Number of pending prospective clients/cases
- Number of active cases month on month
- Number of open client cases
- Number of matters stalled
- Anticipated settlements – amount and date
- The expected value of fees from anticipated settlements
- Investment in case advances
- The dollar value of the fee