Active Legal Cases per Billion Dollars of Revenue

Active Legal Cases per Billion Dollars of Revenue

KPI Details

Active Legal Cases per Billion Dollars of Revenue measures the total number of pending (active cases that have not yet been closed/settled) legal cases in relation to each one billion dollars of revenue earned by the company over the same period of time. A relatively high value for this metric is typically related to a few common factors, including highly manual (i.e., error and rework prone) Legal Department processes and procedures (e.g., poor use of document management systems, distribution of relevant legal information, etc.), excessive time spent on low-value work (e.g., printing, scanning, etc.), general inefficiencies within Legal Department processes (e.g., poor document preparation, lack of prompt responsiveness to legal issues, insufficient research on legal procedural issues, etc.), inefficient representation in the court of law, and sub-par Legal Department employee training and performance. Each of these factors can result in prolonged litigation cycle times and an increased probability that the case will be settled at a loss.

KPI Definition

The total number of pending (active cases that have not yet been closed/settled) legal cases divided by each one billion dollars of revenue earned by the company over the same period of time.

KPI Best Practices

• Highly effective internal audit and compliance functions to prevent future litigation
• Take advantage of alternative dispute resolution when possible
• Effective contract lawyers who put agreements in writing and carefully read contracts from business partners

KPI Calculation Instructions Active Legal Cases per Billion Dollars of Revenue?

Two values are used to calculate this KPI: (1) the total number of pending legal cases, and (2) each one billion dollars of revenue earned by the company over the same period of time. A pending legal case should be considered to be an active case that has not yet been closed/settled. A settlement should be considered to be a resolution between disputing parting about a legal case, reached either before or after court action begins. Include all active cases, whether the cases have begun trial proceedings or not, in the numerator.

KPI Formula :

Total Number of Pending Cases / Each One Billion Dollars of Revenue Earned