The Story Behind the Numbers
In 2022, a global manufacturing company's legal team was asked to justify a 15 percent budget increase. Despite working on more matters with fewer resources, they couldn't provide clear metrics on productivity, turnaround times, or external counsel performance. The data existed—buried in spreadsheets, emails, and matter notes—but it wasn't centralized or reported in a way leadership could trust.
The result? Budget flatlined. The perception of legal as reactive and opaque persisted. And future requests for headcount and tools were met with skepticism.
This scenario illustrates why metric reporting is no longer optional for modern legal teams. As businesses become more data-driven, legal operations must be equipped to track performance, benchmark progress, and translate legal activity into business value.
What Is Metric Reporting in Legal Operations?
Metric reporting is the structured process of capturing, analyzing, and sharing key performance data related to legal department operations. It enables legal teams to measure performance, demonstrate value, identify bottlenecks, and make data-informed decisions. In legal operations, metric reporting covers everything from spend analysis and matter throughput to contract cycle times and compliance performance. Done right, it connects legal work to business outcomes—and positions the legal function as a strategic partner, not just a cost center.
Common Missteps
1 - Reporting Data Without Context or Insight
The challenge: Some legal departments collect and share raw metrics—such as matter volume or legal spend—without framing their relevance or benchmarking performance.
Why this creates risk: Data without interpretation can be misleading or ignored. Leadership may misread trends or undervalue legal efforts.
The business impact: According to the ACC Legal Operations Maturity Model, only 37 percent of legal departments are confident their metrics are tied to meaningful business outcomes (ACC, 2022).
2 - Relying on Manual or Disconnected Systems
The challenge: Many teams use spreadsheets or multiple tools with no centralized dashboard or automation for collecting and analyzing metrics.
Why this creates risk: Manual reporting is time-intensive, error-prone, and limits real-time visibility.
The business impact: Gartner reports that legal teams using automated reporting tools experience 33 percent faster decision-making and 25 percent higher data accuracy (Gartner, 2023).
3 - Tracking Metrics That Don't Support Strategic Goals
The challenge: Some teams measure what's easy to track—such as number of contracts signed—rather than what actually reflects value, such as risk mitigation or efficiency gains.
Why this creates risk: Legal departments may appear busy, but not necessarily effective. It becomes difficult to justify resources or strategic influence.
The business impact: Without alignment to business goals, legal teams struggle to tell a performance story that resonates with leadership or the board.
