Barristers chambers financial management and KPIs

Traditionally barristers chambers financial management and KPIs has been weak and ad hoc. They have been poor at the identification of the small number of KPIs they need in order to manage the business.  Many have not been truly run as a business.  The problem has often been compounded by management committees where few of the members have a real grasp of financial management.

The answer is often the identification of a small number of KPIs (Key Performance Indicators) that management can use to manage the business.  These are likely to include:

  • the value of work done each month
  • the value of unassessed fees at the end of the month (or perhaps more fairly mid way through the next month) so as to allow an opportunity for members to complete their billing
  • monthly fees billed
  • monthly fees collected
  • rent unpaid
  • debtors (in total)
  • debtors (over 18 months)

There will be other KPIs that specific sets use, but this is a list of some of the more common and the ones that can deliver real benefit.  the key is the design of a simple reporting system, training for the management team in monitoring and improving them – and perhaps above all else, the recognition that chambers is a business – and that cash is king…