What Gets Measured, Gets Done! (The Why of KPIs)

The phrase "What gets measured, gets done," often attributed to Gallup and other management experts, has always resonated with me. It highlights the importance of tracking performance to drive action.

I’ve seen firsthand how businesses that establish clear metrics and monitor progress are far more likely to achieve their goals than those that rely on gut feelings alone.

When you work at a law or accounting firm, you can't rely solely on excellent client service to sustain and grow your businesses. Business development isn’t a luxury anymore — it’s a necessity. Yet, I’ve noticed that many firms struggle to measure their success effectively That’s where key performance indicators (KPIs) come in.

KPIs provide a structured way to track business development efforts, ensuring that growth strategies are data-driven and results-oriented. Without them, firms often find themselves making decisions based on intuition rather than facts, making it hard to assess what’s working and what’s not.

In this article, I’ll walk through why law and accounting firms should establish business development KPIs, why so many struggle to implement them, and what’s needed to make a KPI program successful.

Why Firms Should Establish Business Development KPIs

Setting KPIs for business development is essential because they provide measurable benchmarks for success. Too often, law and accounting firms take an informal approach, relying on personal relationships, networking, and word-of-mouth referrals. While these strategies can be effective, they’re difficult to scale and track.

By implementing KPIs, you can:

• Improve Decision-Making: With clear data on what’s working, you can refine your strategies and allocate resources more effectively.

• Hold Teams Accountable: Establishing benchmarks ensures your partners, associates and business development teams stay aligned and responsible for growth targets.

• Demonstrate ROI: Tracking revenue generated from your business development efforts to help justify investments in marketing, sales and client engagement initiatives.

• Identify Weaknesses: Without KPIs, your firm may not realize you are missing opportunities or underperforming in key areas.

The right KPIs provide clarity and direction, helping you move beyond vague business development goals to actionable strategies that drive real results.

The Five Most Important Business Development KPIs

Over the years, I’ve found that the following KPIs are particularly effective for measuring business development success in law and accounting firms:

1. Revenue Growth from New Clients This metric tracks the increase in revenue generated from newly acquired clients. It helps firms understand whether their outreach and marketing efforts are attracting profitable business.

2. Client Retention and Expansion Rate Retaining and expanding existing client relationships is just as important as bringing in new business. This KPI measures the percentage of clients who continue using the firm’s services and how many expand into additional services. High retention and expansion rates indicate strong client satisfaction and trust.

3. Number and Value of New Matters or Engagements Law firms should track the number of new cases brought in, while accounting firms should measure new engagements. This KPI provides insight into how well business development efforts are converting prospects into paying clients.

4. Pipeline Conversion Rate This metric assesses the percentage of leads or prospects that convert into clients. A low conversion rate may indicate issues with follow-ups, ineffective sales processes, or targeting the wrong audience.

5. Client Lifetime Value (CLV) CLV measures the total projected revenue a firm can expect from a client over their lifetime. A high CLV suggests that the firm is successfully nurturing long-term client relationships rather than focusing on short-term gains.

Why Firms Struggle to Implement KPIs

Despite the clear benefits, I’ve seen many law and accounting firms struggle to establish and track business development KPIs.

Several common challenges contribute to this difficulty.

• Lack of a Business Development Culture: Many firms prioritize billable work over business development, leading to a lack of focus on growth strategies.

• Resistance to Change: Partners and senior professionals may hesitate to adopt new measurement tools, fearing increased scrutiny or added administrative work.

• Difficulty in Data Collection: Unlike other industries, professional services firms often lack sophisticated CRM systems or data-tracking mechanisms to capture business development metrics effectively.

• Unclear Ownership: Business development is often seen as everyone’s responsibility but no one’s priority, leading to inconsistent efforts and results.

What’s Needed for a Successful KPI Program

To overcome these challenges and implement a successful business development KPI program, firms must take a strategic approach. Here’s what I recommend:

1. Leadership Buy-In
   Firm leadership must champion the importance of business development and KPIs. When partners and senior professionals support these initiatives, others in the firm are more likely to follow suit.

2. Clear Goal-Setting
   KPIs should align with the firm’s overall growth strategy. Setting clear, realistic and measurable goals will help ensure that efforts are focused and effective.

3. Technology and Data Management
   Implementing a CRM system or another data-tracking tool can streamline the collection and analysis of business development metrics. Firms should invest in the right technology to make KPI tracking efficient and insightful.

4. Defined Responsibilities
   Business development shouldn’t be left to chance. Assigning specific responsibilities to individuals or teams ensures that KPI tracking and implementation are consistent.

5. Regular Review and Adjustments
   KPIs should not be static. Firms should review their business development performance regularly and adjust strategies based on data insights. Holding quarterly or biannual reviews can help refine the approach over time.

KPIs FTW

Working in business development at a legal or accounting firm can be tough. And implementing a KPI program can be challenging, too. But I’ve seen the business value of setting clear goals and know that KPIs will help track your progress and drive meaningful growth for your firm.

Need help setting KPIs for your business? Let’s talk!