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The shell and the future of legal KPIs

In every shell collected on a beach, there is a discreet enigma. Its shape represents a spiral, streaks, thickness. It is not shaped by waves, but by patient, almost obstinate work: that of the mollusc which, day after day, secretes its shell by depositing successive layers of calcium carbonate.

There is nothing random about this process. It depends on what the animal absorbs, retains, processes and what it lets through. The shell is The shape What leaves A filter : a unique form, secreted from within, impossible to reproduce, which tells the story of what the filter let through... and what it chose to discard.

Legal key performance indicators (KPIs) should work exactly the same way.

The silent discomfort of legal KPIs

For years, legal departments have been revolving around the same question: What KPIs should we follow? They compare with each other. They are adjusting their dashboards. They change indicators as the context evolves.

But behind this turmoil, an unease persists: legal KPIs rarely measure what really matters. They misrepresent the value of the legal, at the crossroads of what is expected and what is experienced. They freeze a reality that is constantly changing.

And with the arrival of AI, the problem is becoming even more visible: KPIs are no longer simple reporting. They become the visible layer of an analytical system that is gaining in power and to which legal departments now have access.

Three examples that show the change of era

The refined productivity of legal teams : An approximator that is often used is the number of files opened by a lawyer over a period of time. What if we adjusted the perspective according to the real complexity of the case, the type of case, the counterparty, the level of risk, the urgency, etc.? The result: a KPI that reflects cognitive load, not just case volume.

Anticipating the duration of the signature : a very common indicator in the minds of internal customers is the time required for legal teams to iterate over contractual clauses and “return their copy” for signature. On the business side, the objective is to sign quickly after having seen the main points with their customers. Historical data could produce signature times on a case-by-case basis and gain in predictive accuracy. Because anticipating signature deadlines is a powerful regulator of the organization.

Self-generated analysis of the impact of changes to standard clauses : as legal departments equip themselves with collaborative contract management tools, it will be possible to produce the rate of modification of clauses compared to contractual “playbooks” and to establish correlations with related disputes. The data will be produced without human input.

All in all, AI opens up new perspectives for using KPIs: smarter (they reflect reality, not an average), more pragmatic (they predict instead of describing), less intrusive (they are generated automatically).

But while AI makes KPIs easier to produce, it makes them picks more strategic than ever. The question is: “What KPIs deserve to exist?”

 

The KPI ShellFilter : the 5 questions that define your indicators

Five successive questions to get a clear picture:

1. KPIs for what challenges? Are your challenges mainly HR, operational or strategic? For example, do you have a dialogue to establish with company decision-makers with whom legal influence is not expressed or do you especially have an HR attractiveness challenge in view of your turnover? It is by going to see your stakeholders that you will have the clearest vision of these issues.

2. For what stage of your transformation cycle? Are you in a cruise situation, in” Run ” with the main challenge of showing that your areas of excellence are under tension or are you in” Build ”, in building a roadmap where you want to show a “before” and an “after” on your areas of progress? The answer may vary by business family. At this stage, doing your analysis of strengths, weaknesses, opportunities, threats, in a collaborative workshop is essential

3. For what ownership? The Legal Department is not isolated and its value is often expressed in the relationship with its stakeholders. However, its performance must be monitored. This is the question of the ownership of the indicator: do you want strictly legal indicators, whose circle of causal performance is strictly legal (reactive filing at the registry office of a company's articles of association,...) or do you want indicators with shared ownership, where the legal factor weighs in on success or performance but is not the only contributor (the rate of successful M&A transactions)? The issue of ownership is a safeguard on the conditions under which the indicator is produced.

4. Descriptive or analytical indicators? Indicators “on hand” are often descriptive because they indicate a “flat” reality: number of cases processed, number of patent families granted, amounts of provisions for litigation, etc. Moving to analytical indicators offers a [effect/effort] type of relationship and makes it possible to couple legal activity with good business performance and to reveal its impact. Example: the redeployment of lawyers to contract managers in support of claims made it possible to significantly reduce disputes over the period

5. Extensive or low numbers of indicators? The result of this framework can lead to 10, 15,... 30 key performance indicators. The objective is to rationalize these indicators to 4 or 5 for a clear reason: teams need an engaging discourse, focusing energies: a limited set of indicators makes it possible to have managerial communication that goes to the essentials. And beyond: the strategic dialogue with the Directorates-General is nourished by a vision and concrete evidence. A 2-minute pitch is incompatible with a dashboard of 19 KPIs.

These five steps act as a filter. They sort, select, eliminate, prioritize. They transform your past, present, and future reality into a unique shape : your KPIs.

Like a shell, your indicators are not passive measures. These are cultural artifacts, shaped by your choices, which are part of your history and your future. They tell about your value, your posture, your trajectory

And like a shell, they are like no other

If you want to:

  • Clarifying your performance narration with a workshop Vision
  • build your KPIs step by step thanks to KPI Shell Filter
  • align your indicators with your strategy and your transformation
  • or simply get out of the KPI trap “by mimicry”,

Waldenlab helps legal departments to clarify the source of their performance, build indicators that suit them, animate the work collective and... maybe even hear the sea!

 

 

 

 

 

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