Leadership, teamwork, and effort cannot replace a results-driven management. Progress cannot be achieved without data. To reach effective Data Driven management, specific steps must be taken. For example, envision tracking labor agreement costs in a particular year and region. This article will explore the process of transforming data into valuable insights.
Performance indicators, also known as KPIs, are metrics organizations use to assess performance and efficiency of activities, often presented as numerical goals or parameters with accompanying visuals.
Paralegal Report: Quantitative overview of processes recorded in Legal One.
Performance indicators are crucial because they provide a way to track progress towards goals, ensuring clarity on when and how they will be achieved. Many legal organizations in Brazil operate without utilizing structured data effectively, resulting in missed opportunities for strategic planning and innovation.
Figure 2. Accredited Office Comparison Quality Indicators
The figures’ indicators are designed to assess the outcomes achieved by two recognized law firms (A&B and C&D) in a qualitative manner. By setting a minimum target for the number of agreements and a maximum target for the number of convictions, a comparison rule is established to highlight the differences between the two firms.
The analysis of the information shows that the A&B office is organizationally stable and consistently monitors and tracks results.
The C&D office lacks a standard for performance evaluation and result monitoring, showing organizational challenges and delivering results only upon request or demand.
The legal system in Brazil, including corporate law, is unproductive, costly, inefficient, and failure-focused. Random process management is no longer acceptable, and simply working longer hours does not equate to increased efficiency. It is essential to shift towards data-driven management and focus on achieving tangible results. Gone are the days of presenting incomplete or vague conclusions to justify mistakes; it is time to elevate the legal profession to the same level as other business functions by leveraging data and structured analyses for informed decision-making.
W. Edward Deming
The critique is severe but genuine. The positive aspect is that there is a solution for this issue. You can alleviate the suffering caused by ineffective data management, enhance the reputation and performance of your law firm or legal department, and advance in your career. While it’s common to find lawyers who excel in writing, arguing cases, and providing legal opinions, those who possess strong analytical skills to optimize data generation and utilize Business Intelligence tools are scarce. The upcoming generation of professionals will be characterized by their analytical abilities. Failing to leverage available data effectively may result in being replaced by individuals who have honed this skill.
To begin, it is important to establish a Data Driven culture in your office or legal department, with the support of your team and leadership. Convincing your board to implement indicator-based management should not be challenging. Evaluate your challenges based on cost versus benefits to identify critical areas that yield the highest impact with minimal effort. Collaborate with your team to brainstorm, select top ideas, and prioritize initiatives accordingly.
Avoid initiating a plan that attempts to address all issues at once. Establish a structured sequence of tasks, assess your present status, define an achievable goal, and monitor your progress using indicators.
Dashboard containing key indicators presented in a one-page executive report.
An Executive dashboard should be concise and straightforward, ideally fitting on a single page. It should prominently display key indicators to allow executives to quickly assess results and manage the legal department or law firm effectively.
Slide presentations are becoming less common as they take time to evaluate one indicator at a time and make it challenging to grasp the overall picture. The dashboard in the image utilizes bullet points to represent the pillars of legal management through indicators.
To comprehend large-scale management concerns like the quantity of ongoing operations, their status, nature, and overall allocation, one must delve into volumetrics.
To assess the numerical breakdown of the initial subject in a geographical and administrative analysis, as is typical in many organizations.
To comprehend the creation of this information at specific time periods, analysis of its distribution and conclusion is necessary.
It is crucial to assess the results of the office or legal department’s efforts, as no work is meaningful without a satisfactory outcome. Evaluating the effectiveness of these efforts through metrics such as convictions, agreements, and financial payments is a common practice among executives.
Each industry has its unique indicators, but the dashboard mentioned above may not cater to any of them. It is crucial to establish initial parameters and adapt them as knowledge of the data improves.
Your office or legal department’s management system is a valuable ally in this journey. The principles we discuss have been established in the business world since the early 20th century, with major advancements in the 70s and 80s. The key shift lies in the systematization, database accessibility, processing capabilities, and user-friendly platforms available today. Adopting a results-driven approach in your legal office or department without a robust legal ERP system and BI module is now considered essential, as relying solely on Excel spreadsheets and manual notes is no longer a feasible option.
The task is to find a suitable system that allows for management through indicators. While most market systems are effective at organizing key activities of a legal process and advisory tasks, they often lack visibility for overall management or crucial aspects. Ask your system basic questions, such as the amount paid in labor agreements by the Alfa company in the Campinas district during the third quarter of 2020. Compare this with the fourth quarter of the same year and include data from another brand in Ribeirão Preto/SP for reference. Integrate the “order value” variable, switch the graph style to stacked columns, and adjust the color scheme to align with your office or company’s branding guidelines. Ensure that this data is updated daily, shareable with external parties, and presented in a concise executive report format. As you progress in transforming data into information, complexities may arise.
Geographic Analysis of Labor Contracts in São Paulo State
Legal One Analytics utilizes Business Intelligence methods to address the issue of information flow that cannot be resolved solely by the process management system. The software organizes and manages data, providing analyses to transform structured data into valuable information for improved decision-making.
Integrating Business Intelligence with process management systems is complex due to differences in initial purposes, technologies used, and the challenge of implementing data analytics on existing management platforms. Utilizing market BI systems is an option, but often requires specialized data science expertise, which may not be feasible for many legal offices or departments. Additionally, reliance on external data science professionals can lead to inefficiencies and potential project setbacks when they depart.
It was necessary to combine Thomson Reuters with Juristec+ and assemble a team with various expertise to develop the innovative Legal One BI system.
Competent professionals are crucial for success in the field of law, as legal knowledge remains essential to our work, despite the evolving nature of legal practices. It is important to recognize that being a skilled proceduralist does not necessarily equate to being an effective process manager, as each role requires distinct expertise.
Sign up for our Webinar Impress Your Customer With Jurimetry and Visual Law on July 28 at 10 a.m. to learn more about this subject. The event will feature the legal manager of Nestlé, Rafael Martines da Costa, and the CEO of Juristec+, Rui Caminha. Register using the provided link.