ALA CLM key terms

A formal instruction to preserve documents and data relevant to pending or reasonably anticipated litigation, suspending routine destruction so evidence is not lost.

The loss, alteration, or destruction of evidence that a party had a duty to preserve, which can lead to sanctions, adverse inferences, or malpractice exposure.

A written policy specifying how long each category of firm or client file must be kept and when it may be destroyed, balancing legal, ethical, and business needs.

A systematic search of client and matter records before accepting a new engagement to identify adverse parties or relationships that would disqualify the firm from representation.

A written agreement defining the scope of work, fee arrangement, responsibilities, and expectations between the firm and the client before representation begins.

A separate bank account holding client funds that the firm must not commingle with its own money, subject to strict recordkeeping and reconciliation rules.

A monthly comparison of the trust account bank balance, the client ledger balances, and the firm's trust journal to confirm that all three agree.

Interest on Lawyers' Trust Accounts: a pooled trust arrangement in which client funds earn interest that is remitted to a designated legal services or charitable program.

A method that records revenue when earned and expenses when incurred, regardless of when cash changes hands, giving a fuller picture of financial position.

A method that records revenue only when payment is received and expenses only when paid, which is simpler but can distort profitability over time.

Unbilled time and disbursements accumulated on open matters, representing revenue the firm has earned but not yet invoiced to clients.

A report grouping unpaid client invoices by how long they have been outstanding, used to spot collection problems and estimate bad debt.

A measure of the average number of days it takes to collect payment after an invoice is issued; lower values indicate faster cash conversion.

The percentage of standard billable value actually billed to clients, calculated by dividing amounts billed by amounts of time and disbursements recorded.

The percentage of invoiced amounts that the firm actually collects, reflecting write-offs, discounts, and client nonpayment after billing.

The proportion of an attorney's available working hours that is recorded as billable time, a key driver of firm revenue capacity.

A unit of attorney time charged to a client, typically recorded in increments such as one-tenth of an hour and priced at an hourly rate.

Any pricing model other than straight hourly billing, such as flat fees, capped fees, contingency fees, or subscription arrangements.

A fee paid only if the matter succeeds, usually a percentage of the recovery, shifting financial risk from client to firm.

The difference between a matter's or firm's planned budget and actual results, analyzed to explain overruns or savings and guide corrective action.

A written summary of a position's duties, reporting lines, qualifications, and working conditions, forming the basis for hiring and performance expectations.

A framework listing the skills, knowledge, and behaviors required for success at each level of a role, used for hiring, development, and evaluation.

A structured, periodic evaluation of an employee's work against goals and competencies, typically including feedback and development plans.

The process of integrating a new hire into the firm through orientation, training, and social acculturation to improve retention and early productivity.

A contract restricting an employee from working for competitors or soliciting clients for a set period and geography after leaving, subject to enforceability limits.

A contract provision barring a departing employee from soliciting the firm's clients or staff, often more enforceable than a broad non-compete.

An attorney or professional recruited from another firm or organization rather than promoted internally, often bringing a portable book of business.

A classification under the Fair Labor Standards Act determining whether a worker is exempt from overtime pay based on duties and salary tests.

A visual map of the steps, decision points, and handoffs in a process, used to identify delays, redundancies, and opportunities for improvement.

The practice of documenting how work actually flows through a matter or department so that inefficiencies and unclear responsibilities can be corrected.

A written, repeatable set of instructions for performing a routine task consistently, supporting quality control and easier training of staff.

An improvement approach that removes waste, such as waiting, rework, and excess motion, from processes to increase speed and value for clients.

A data-driven quality method that reduces variation and defects in processes, often using defined phases such as measure, analyze, and improve.

Planned checks and reviews that verify work product meets defined standards before delivery, catching errors while they are still inexpensive to fix.

The practice of capturing, organizing, and sharing the firm's precedents, expertise, and know-how so lawyers can reuse work instead of recreating it.

The structured process of gathering information from a prospective client, screening for conflicts and fit, and deciding whether to accept the matter.

Systems and practices for tracking interactions, preferences, and opportunities with clients and prospects to strengthen retention and grow revenue.

A structured questionnaire that gathers client feedback on service quality, communication, and value, used to identify improvements and retention risks.

The clients and revenue an attorney can realistically bring to a new firm, a central factor in lateral hiring and compensation negotiations.

Encouraging existing clients to use additional practice areas or services of the firm, increasing revenue per client and deepening the relationship.

A formal client invitation for firms to bid on legal work, typically requiring a proposed approach, staffing plan, pricing, and demonstrated experience.

A presentation or written submission in which a firm competes for new business by explaining its approach, team, and value to a prospective client.