From Data Collection to Data Literacy: Rethinking Data in the Business of Law
Law firms are data-rich and have been for years; however, they haven’t always fully leveraged their data to inform decision-making - and that is changing.
Firms are now treating their data as a strategic asset, not an operational by-product, and are moving from data collection to data literacy. This shift in behaviour means firms are using their data to guide decisions, forecast needs, and support investment decisions.
A Mark Twain quote sums up the business case for the transition from data collection to data literacy – “Most people use statistics the way a drunkard uses a lamp post, more for support than illumination.”
In recent years, firms have expanded their data literacy to include sets of metrics (KPDS) tied to digital transformation, client expectations, and pricing analysis.
These datasets go beyond traditional billable-hour measures and include:
· AI adoption
· AFA profitability
· Client acquisition cost
· Client lifetime value
· Digital engagement
· Matter cycle time
· Diversity metrics
· Technology return on investment (“ROI”)
While traditional financial metrics like revenue and profitability continue to be critical, the addition of these new datasets provides a holistic lens on performance measurement, offering valuable insights into client experience, productivity, and business development effectiveness.
This broader view comes with the awareness that firms can create more sustainable income for partners by focusing on activities that positively contribute to the firm’s revenue rather than cutting costs.
The determination of what data meets the KPDS status is the same as what makes an indicator a Key Performance Indicator:
· Must reflect the firm’s strategy and goals;
· Must be key to the firm’s success; and
· Must be quantifiable
A note of caution: firms need to weigh the importance of the data they use and remember that no single data set tells the full story; rather, they must be viewed collectively to provide the greatest insight and support the best-informed decision-making.
Who is East Coast Legal Ops?
It is a partnership between Atlantic Canadian legal industry professionals – Terry Moore, BComm, ICD.D, of Moore for Professionals Strategy + Marketing, and Stephen Mabey, CPA, CA, of Applied Strategies Inc.- focused on bringing together the people who support the business of law.
We deliver this support via conferences, private presentations, and insightful articles. At the same time, we remain active in our professional consulting practices.
In the spring of 2026, we will publish a booklet titled Key Performance Indicators for Your Legal Practice: Measuring Success and Driving Growth, which will include many of the new data sets that firms are turning to.
Our second annual East Coast Legal Ops conference, a dedicated professional development forum for legal operations professionals, senior administrators, directors of operations, COOs, and lawyers involved in the business of law, is scheduled for September 23rd & 24th, 2026. Updates will be forthcoming.
We can be readily reached at: