Definition
Managing a legal department’s budget can be tricky—there’s always a gap between what’s planned and what’s actually spent. The Legal Department Budget vs. Actual (LDBA) metric helps you track that difference, giving a clear view of how closely your spending aligns with what was forecasted. If you consistently go over or under budget, it might signal the need for a deeper look at how resources are being allocated.
Limitation
Timing matters. Checking this metric too early might not give the full picture, and waiting until the end of the year might mean you’ve missed the chance to make adjustments. Regular, quarterly reviews allow for more timely changes before things get too far off track.
Future Target
It’s important to build some flexibility into your budget throughout the year. Unexpected legal issues or shifts in financial conditions happen, and adjusting your budget when needed can help prevent big variances and keep everything on course.
If you’re interested in learning more about this metric, along with other KPIs, check out The Legal Operations KPIs book available on Amazon in English / Spanish. or as an eBook on Google Play in (English / Spanish). It covers essential metrics and KPIs with practical insights to help you get the most out of your legal department.
Visit LegalOpsKPIs.com for more information, exclusive resources such as expert interviews, a chart library, Excel templates, and to connect with a global community of professionals committed to advancing Legal Operations through data-driven insights.
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