New model was developed by analyzing crowdthinking from over 1,000 legal department heads to establish credible best practice metrics.
The Acritas PEER modelTM has been published today in response to research which revealed that 25% of legal departments have no metrics to measure value. This innovative model provides a suite of recommended metrics by which legal departments can better measure and benchmark the full results they deliver to their organization.
When Lisa Hart Shepherd, CEO at Acritas discovered a quarter of organizations have no metrics in place to measure their legal departments she began much deeper investigations. According to Lisa “Analysis of the 75% using metrics revealed an over-emphasis on cost (33%) as opposed to proactive risk management, effective legal support and creating value through efficiency – a clear mismatch with legal department goals.”
The Acritas PEER modelTM was developed by Lisa Hart Shepherd (CEO) to provide a credible scientific solution to advancing legal department management.
The model takes crowdthinking from GCs and legal operations heads across the world to provide a suite of best practice metrics from which all legal departments can confidently select relevant performance measures and develop a more accurate assessment of their value and contribution. Acritas can then provide benchmarks from their global dataset to enable GCs to make an objective analysis of their value.
Lisa added, “Legal departments have for too long been measured on spend alone which does not address in any way the core purpose of the function. Of course, optimizing value from legal spend is critically important, and increasingly so through the last decade, but this has to be secondary to maximizing commercial return and minimizing legal risks and losses.”
Acritas, the global legal market research company behind Sharplegal, evaluated the metrics currently being used by over 1,000 legal departments to measure success alongside their articulated goals. The entire range of responses were thoroughly analyzed and used to define a tight framework of best practice metrics which align to the three core legal department goal areas their research also identified - Prevention, Effectiveness and Efficiency.
This model was then evaluated extensively with members of Acritas' Advisory Board to refine its potential application in day to day practice. Through this process, a fourth Review stage was added to create a virtuous circle of improvement, and the Acritas PEER modelTM.
Acritas PEER modelTM
Lisa added, "We created the Acritas PEER modelTM to help legal department heads measure and benchmark their performance and contribution to the wider organization in a more meaningful way. In turn, this will also enable others, such as CFOs who often determine legal departments’ budget and resources, to better understand the broader scope of the value being added, and what may be lost through potentially dangerous cuts.
Acritas provides online benchmark calculators to all participants of Sharplegal to enable legal departments to compare their performance with other similar organizations.
The Acritas PEER modelTM report can be downloaded from acritas.com.
Access to Acritas’ legal benchmark calculators is only available to participants of the Sharplegal study (interview eligibility is dependent on seniority of role and company revenue size). To find out more and schedule your interview please email Kayleigh Lowes: firstname.lastname@example.org
For press enquires please contact:
Emma Hussain, Acritas
Tel: +44 (0)808 178 3020