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•Communicates priorities and direction •Focuses on improving processes, not functions •Aligns operational activity with strategic goals •Provides
necessary leverage for change
The benefits of such an approach can be financially dramatic. It has been estimated that
impact of adopting a balanced approach to measurement (in
legal department alone) is a profitability increase of between 15% and 25% for a typical Fortune 500 company.
The balanced Scorecard (R. Kaplan and D. Norton, Harvard Business Review 1992) is one such a framework.
About The Balanced Scorecard Methodology
The Balanced Scorecard methodology, developed by Robert Kaplan and David Norton, translates an organization’s business strategy into an understandable action plan. Using
Balanced Scorecard technique, an organization can clearly define strategic concepts like value, quality and satisfaction. The Balanced Scorecard then becomes a framework for implementing
strategies related to those concepts. This range of uses makes
Balanced Scorecard an integration hub for strategic management.
With
balanced scorecard, corporate legal managers can measure how outside entities and individuals create value for
department and
organization as a whole. They can determine what
department must invest in or take away from to improve that performance. While maintaining an interest in financial returns,
Balanced Scorecard reveals
non-financial drivers of superior, long-term value creation.
In addition, The Balanced Scorecard enables legal managers to view
well being of
organization from four important perspectives or quadrants. Each quadrant of
scorecard reports performance measures in
form of key performance measures or indicators (KPI). The Balanced Scorecard is a mechanism for translating an organization’s vision and strategy into a coherent set of objectives and performance measures. It uses measurement to communicate
drivers of current and future success.
Read about Balanced Scorecard Perspectives in Part 2 of “Balancing Your Legal Scorecard”

Richard Hall is founder/CEO of Hall’s Benchmarks & LexTech, legal information companies that help public & private entities Manage the Business of Law©. Rich’s meld of technology & statistics produced a techno-analytical model of law practice. In 1994, he invented linguistic SW which automatically budget codes, reports GAAP accrual financials & conducts compliance analysis. t 530.820.4070, f 530.820.4071, rhall@hallenterprises.us