Measuring ROI from Your Innovation Initiatives
Innovation can often be perceived as being of a high cost to the enterprise. The most impactful innovation is often led by experts who are well-versed in the environment–those same experts are often also the strongest revenue generators in the business. After all, these are the people who can seemingly easily identify the gaps and the solutions necessary to close them.
As innovation initiatives are often implemented incrementally, they run the risk of feeling fuzzy in their early stages, sometimes leading those involved to exit prematurely due to impatience, lack of clarity, or the lack of immediate results or value.
For these reasons, it is important that innovation initiatives are measured, to ensure that time invested by high cost resources has a strong return on investment as well as keeping those involved engaged; fueled by facts rather than faith.
Here are a few ways law firms can measure their initiatives:
- Net Promoter Score–customers should value firms that invest in innovation and, in turn, weave those threads of innovation into their services delivered.
- Repeat/expanded business–how do the customers who benefit from the firm’s innovation choose to renew/buy future services from the firm?
- Speed–the introduction of innovation initiatives should yield speedy results, whether that be in the full outcome of the deliverable or individual elements from which it is comprised.
- Cost–overall, the total cost of delivering a service should decrease.
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Strong evidence shows that multiple elements involved in the delivery of legal services can benefit from innovation and automation. For example, basic automated document organization, extraction, and analysis can help both a firm’s lawyers (by enabling them to focus their time on activities of highest value) and their client (improved speed of delivery and lower cost). And it is important to note that innovation can come in many forms–even firms that don’t have access to a variety of technological solutions can demonstrate innovation by allocating a portion of their time to focus on improving, measuring, and delivering the best client service possible. Continually striving for innovation, whether or not it is always successful, is a true gesture of partnership.
Join us at ILTACON on August 22 at 1:30 PM ET as we provide more insight into assessing the impact of innovation, how in-house counsel should evaluate outside counsel on innovation, and the best measurement tools available.
About the Author
Pratik leads Elevate’s product business and spearheads innovation across all solutions.
VP, Innovation and Products