Leveraging Data and KPIs to Drive Law Firm Strategy and Collaboration

By: Jill Huse

[The third of eight articles in the Law 2.5 Strategic Insight series. Law 2.5 is a forward-thinking consortium of industry leaders focused on redefining how law firms operate, compete, and create value in a rapidly evolving marketplace. Throughout the series, authors explore structural, cultural, and strategic shifts shaping the next generation of legal services.]

Strategic decision-making in the legal industry is no longer a matter of intuition. While the profession prides itself on facts and precedent, many firms still rely on anecdotal evidence and outdated practices when managing their business. To remain competitive and client-focused, law firms must embrace a more disciplined, data-informed approach, beginning with how they measure success.

Modern CMOs are strategic leaders ... they use data not just to report, but to lead.

As we set the stage for a broader exploration of enhancing practice management and collaboration, we will also examine how to optimize practice operations, embrace agility, define value in billing, and achieve true interdepartmental integration. But first, we must understand how data and KPIs serve as the foundation for these shifts.

Why Data Matters

Without data, we have only hunches. And hunches do not move the needle. Facts do. The right KPIs and OKRs allow firms to measure impact, assess effectiveness, and develop strategic focus. But metrics must be bespoke. Every firm has different goals, and generic data solutions miss the mark. When metrics align with a firm’s vision, they create clarity. When they do not, they breed inefficiency.

Take event sponsorships, for example. If a firm continues to invest in a legacy event without new business, attorney engagement, or client presence, why is it still in the budget? In the absence of data, tradition drives decisions. That is a costly mistake.

Metrics That Matter

Many firms fixate on short-term financials without recognizing long-term trends. Multi-year data can highlight client attrition patterns or declining engagement that would otherwise go unnoticed. Clients rarely fire firms all at once. They fade away.

Equally overlooked is the strategic value of non-billable time. When viewed collectively, this time reveals how a firm shows up in the market through mentoring, thought leadership, or community engagement. Yet most firms fail to track it consistently. Worse, they rarely include business professionals in this analysis, despite their central role in firm branding and client service.

It is time firms shift their mindset to Return on Effort (ROE), recognizing that value is not always measured in hours billed.

Turning Insight Into Action

At a prior firm, I led a time-tracking initiative within our marketing department. Initially met with resistance, the exercise uncovered that one team member spent over 40 hours in just one month managing internal requests for tickets, nearly 40 percent of which were personal asks from attorneys that had no tie to clients, community building, or business growth.

By calculating the cost for these requests and presenting it in terms that attorneys understood (billable hours), we secured buy-in for a new ticketing system and clearer boundaries. Data did not just drive operational change. It empowered the team and elevated the department’s role in strategic planning.

Breaking Silos with Data

Data can also unite departments that often work in isolation. In firms where even the professional staff are siloed, data offers common ground. Shared KPIs, such as those related to lateral hiring, ensure alignment among the practice group, other practices within the firm, HR, marketing, finance, and IT. Integration is not just an HR responsibility. It is a firm-wide commitment. Without shared accountability, the ROI on lateral investment often falls flat.

Leadership must model this behavior. Collaboration is a top-down philosophy, and data transparency should be part of that. Set expectations, incentivize teamwork, and hold people accountable. The culture will follow.

Getting Started: A Pragmatic Approach

Moving from anecdotal to analytical does not require a massive overhaul. Start with strategy. What does the firm want to achieve? Then build 3-5 foundational KPIs to track progress, such as:

• Quality business-building actions by individuals and firm-wide

• Retention of lateral hires over the past five years

• Growth of a practice group that has intentional efforts for development

• Successful cross-service integration of new work for existing clients

• Client retention and growth among the firm’s identified key clients

Once defined, integrate those metrics into existing systems and workflows. Use your business professionals to help communicate and integrate these processes; they are problem-solvers by design. Prove value incrementally. In law firms, small wins pave the way for bigger transformations.

Redefining the CMO Role

As firms become more data-informed, the role of the CMO has changed. Once seen as support staff, modern CMOs are strategic leaders. They build balanced teams, foster innovation, and model continuous learning. They bring empathy, clarity, and accountability to the table. They use data not just to report, but to lead.

Speaking the Language of Lawyers

To influence firm strategy, marketing and BD professionals must think like lawyers. Track time. Build cases. Communicate in facts. When you mirror the analytical mindset of attorneys, you gain more than credibility. You gain influence. With the right KPIs, you can help drive the very strategy you are meant to support.