PART II: VALUE LEVERS IN EUROPE
Chapter 5. Measurement and Metrics
If laying out the path or plan is the first part of the equation to deliver value, then
monitoring progress to stay on course (and adjusting as necessary) is the second important part.
Quantitative measurements are new for many in-house lawyers in Europe. Until a few years ago, few
in-house counsel were accustomed to preparing budgets for particular commercial transactions or
projects. Becoming comfortable with measurements takes time, and often meets resistance in the
TIP: Don’t spend all your time searching for the perfect measures or metrics. They do not exist.
It is better to find a few straightforward, easily understandable and reasonably reliable measures
that are relatively easy to implement and can give you directional information that is useful.
While measurement and metrics can be particularly difficult across Europe with different
accounting approaches and systems and varying ways of interpreting data, it is essential to have
certain measures to understand how much more value you are adding. If the lines of business in
Europe can use measurements effectively, the law department should be able to as well. Without the
measurement, there is no proof of any progress. This aspect of strategic execution goes far beyond a
one-time exercise. Measurement and metrics require continuous effort to:
•;align law department structure with strategy;
•;develop business skills and business language among lawyers
(inside and outside counsel); and
•;build law department credibility as a team that helps achieve business goals.
5 A. Clarify current spending – internal and external
It can take a long time to understand what your organization is currently spending on legal
resources, both internal and external. Most organizations have great difficulty accounting for the
spending figure more than one year behind. But it is important to know where you stand now in
order to know how far you’ve travelled toward your objective. Clarify current spending, both internal