The development of legal BSCs can do a lot when it comes to the systematization of law firm operations, as well as increasing patronage.
Balanced scorecards are applicable to all kinds of businesses and institutions – naturally,
since all institutions like their goals, whether for profit or not, to be achieved in a most orderly and efficient manner. The practice of law is not an exception and legal BSCs – that is balanced scorecards for law firms and even individual lawyers – are gaining much acceptance as an excellent method of promoting the practice and measuring success and failure.
Like other businesses, the bottom line of a law firm is profit. However noble the intentions are, like defending the poor and oppressed, it cannot continue operating without earning enough to pay its lawyers and something else left for the partners to divide. Besides, not earning enough can just mean less than desirable performance.
The balanced scorecard gives a law firm a good chance to earn some decent money. Businesses focus on major performance areas that contribute to the attainment of objectives. Finance is one, internal process or efficiency is another, but perhaps for law firms, the most important is learning and growth. Learning and growth is directly related to the fourth key performance area – customer service.
The balance scorecard for learning and growth involves developing a team of lawyers that can handle a variety of cases with an efficiency that will encourage clients to come back and make referrals. The balanced scorecard will feature a system where theoretical knowledge and on-the–job skills of lawyers will be systematically and objectively assessed. This assessment will serve as an excellent method of matching skills with jobs, ensuring a more desirable success rate in the handling of cases brought by clients for resolution.
Another essential element of a learning and growth scorecard is a staff development program, which should be based also on the results of the assessments. The staff development program must be geared towards filling the gap between the knowledge and skills of lawyers and those that that are demanded by cases being handled. Not all law offices handle all kinds of legal cases, but with a comprehensive development program, fields of expertise can be expanded to bring in more clients. The program can also be used to achieve specialization in areas where the firm can earn more or render the best service.
The finance aspect will involve the usual financial tools designed for better allocation and use of resources – budget projections, disbursement and collection policies, procedures, and documentation. The documentation process, including dissemination, must be designed to provide a responsible official with enough information necessary for making accurate judgment on the financial status of the firm.
The internal process balanced scorecard for a law firm will involve all activities intended to improve overall performance. Another term for this is organizational development. The balanced scorecard will include a mechanism for instituting change – monitoring and evaluation systems, as well as policies and procedures reviews and revisions.
The fourth key performance area is the customer. The law firm will be very concerned with its public image. There is no substitute for excellent service, but a good program to portray a positive image will always be a plus factor in getting more clients.
The legal BSC – BSC for law firms and lawyers – is not much different from the typical BSCs of other companies, and law firms can certainly benefit a lot from employing one.
