Financial Management

EARLY

• Devoid of standard processes, metrics and analytics

• Ad hoc timing

• Budget lacking or set by Accounting; tracked via spreadsheets and/or Word tables, if at all.

INTERMEDIATE

• Standard processes exist but not documented or well-known

• Budget set and accruals managed through strong collaboration between Legal and Finance; Legal Operations oversight of spend and budget management

• Metrics and analytics reactive and decentralized

• Timing driven by external party (e.g. Finance)

• Budget tracked via spend management system

• Forecasts done as requested; accruals done on large matters

• Reserves and contingencies set on large matters and/or through informal conversations (undocumented)

  • High-level discussions between Legal Ops and internal counsel when setting financial targets

  • Budgets and forecasts completed at a business, practice area, or regional level.

ADVANCED

• Standard processes defined, documented, and communicated through published policies and procedures

• Defined reports, metrics, and dashboards distributed according to a defined schedule with assignees and real-time data

• Timing driven by Legal (in support of corporate calendar) via published, communicated timeline and/or project plan

• Budget and forecasts tracked via standardized tools; systems utilized enterprise-wide at the matter level and easily directed to the appropriate cost center

• Standard forecasts and accruals, automated with technology and according to a defined timeline

• Reserves and contingencies set via standard, defined, and defensible process for tracking and reporting reserve recommendations and aggregated legal contingencies

• Regular budget reviews with the senior leadership team

• Key performance indicators (KPIs) managed, tracked, reported, and benchmarked

• Frequent, in-depth, and documented collaboration between Legal Ops, internal counsel, and external vendors when establishing financial targets

• Solid and longstanding partnerships with Corporate Finance established

• Legal engaged in companywide financial initiatives and processes.

Financial Management Budget and GL Accounts
Financial Management Budget and GL Accounts Worksheet

Financial Management Restructure Inhouse
Financial Management Restructure In-house Worksheet

Financial Management Building a Budget
Financial Management Worksheet for Budget Build-up with Initiatives

Financial Management ROI Worksheet
Return on Investment Worksheet