Law firms have metrics like any other services business: productivity, utilization, profitability. Their base rate increases on these metrics. But if timekeeping practices are deficient, the metrics won’t present an accurate picture. Since time is the basic unit of measurement for productivity and utilization in services business, hours serve as the denominator for law firms’ KPIs.
The need to improve timekeeping practices is backed by research, including some features in the Harvard Business Review and sources in the legal industry. Although #timekeeping is not a trending hashtag, it does require closer attention. I recently caught up with Jenny Anne Horst-Martz, my co-author for two books, Legal Value Track and Best Practices for Using UTBMS Codes for Mergers & Acquisitions. Her law firm has made significant strides in improving timekeeping practices.