Total Revenue per Legal Department Employee

Total Revenue per Legal Department Employee

KPI Details

Total Revenue per Legal Department Employee measures the total dollar amount of revenue generated by the company in relation to the number of Legal Department employees (includes attorneys, paralegals and legal administrative staff) working for the company over the same period of time. A relatively low 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, etc.), excessive time spent on low-value work (e.g., printing, scanning, etc.), overstaffing, general inefficiencies within Legal Department processes (e.g., inefficient distribution of corporate governance policies to employees, poor management of company intellectual property, etc.), and sub-par Legal Department employee training and performance. While companies typically seek to streamline operations and employee positions to reduce expenses in the Legal Department, great care should be taken when doing so as too many layoffs may make it that much more difficult for the company to successfully mitigate any legal issues that may pop up.

KPI Definition

The total dollar amount of revenue generated by the company divided by the number of Legal Department employees (includes attorneys, paralegals and legal administrative staff) working for the company over the same period of time.

KPI Best Practices

• Employ outside legal firms when appropriate to avoid overstaffing internal Legal Department
• High retention rates of best employees to reduce need to employ more legal staff
• Highly effective internal audit and compliance functions to prevent future litigation

KPI Calculation Instructions Total Revenue per Legal Department Employee?

Two values are used to calculate this KPI: (1) the total dollar amount of revenue generated by the company, and (2) the number of Legal Department employees working for the company over the same period of time. Include employees (attorneys, paralegals and legal administrative staff) in all of the Legal Group’s sub-functions (e.g., Corporate Governance, Government Affairs, Intellectual Property, Legal Administrative Support, Litigation Management, Mergers & Acquisitions) in the denominator.

KPI Formula :

Total Company-Wide Revenue Generated / Number of Legal Department Employees