Law Firm KPIs That Actually Matter (And the Ones That Don’t)

If you're only tracking revenue, you’re managing by rearview mirror.

The best law firms use real-time KPIs to forecast growth, catch inefficiencies, and scale with clarity.

Here are the law firm KPIs that actually matter—and the ones wasting your time.

1. Track Utilization, Not Just Billable Hours

Billable hours mean nothing if your team isn’t used efficiently.

Track:

• Utilization rate = billable hours ÷ total capacity

• Realization rate = billed ÷ collected

• Unbilled time = hidden cost most firms ignore

2. Profit per Case > Total Revenue

A million dollars in revenue doesn’t matter if your margins are thin.

Track profit per case across practice areas and client types.
Know which work is profitable—and which is just keeping you busy.

3. Lead Conversion Metrics

Marketing isn’t broken if your intake is.

Track:

• Cost per lead

• Consults booked

• Close rate per source

• Response time to inquiries

Speed and conversion outperform volume every time.

4. Cash Flow & Collections

Growth kills firms without good financial systems.

Track:

• DSO (Days Sales Outstanding)

• Weekly cash in / cash out

• Unpaid invoices by age

If you can’t predict cash flow, you can’t plan confidently.

Conclusion

Great firms don’t guess. They lead with data.

📌 Want to see the KPI dashboard top law firms use?
Book your free strategy call with a Firm Scale executive today.