Key Performance Indicator

Key Performance Indicator

Key Performance Indicator

Key performance indicators in litigation management commonly include cycle time, cost per matter, defense cost ratio, budget variance, outcome distribution, and guideline compliance rate.

Indicators should tie to a stated objective rather than measuring what is easy to count.

Alternative Names:

KPI, Performance Metric

Why it Matters?

The recurring problem is selecting indicators that are measurable rather than meaningful, and then managing to them. Cycle time as a standalone target encourages settling cases that should be tried; cost per matter alone encourages under-resourcing severity claims. Balanced indicator sets that pair efficiency measures with outcome measures avoid the distortion, and reviewing what behavior each indicator rewards is worth doing before adopting it.

Frequently Confused with

Related terms

Frequently asked questions

What indicators are common in litigation management?

What indicators are common in litigation management?

Cycle time, cost per matter, defense cost ratio, budget variance, outcome distribution, and guideline compliance rates.

What is the risk in indicator selection?

What is the risk in indicator selection?

Managing to measurable rather than meaningful metrics, since cycle time alone rewards settling triable cases and cost alone rewards under-resourcing severity claims.