Is it more important for a law firm to do things right or is it better to do things right? Management gurus have long asked this very question. A common consensus declares that the companies that can excel at both are the ones that will eventually come out on top. While “doing the right thing” is an idea that is related to effectiveness, “doing the right thing” has more to do with efficiency. Therefore, when a law office has the right systems in place and, more importantly, uses these systems correctly, it will see an increase in efficiency, which ultimately translates into increased productivity throughout the company.
Most of the 2,200 law firms we have worked with often have much of “doing the right things” at face value when they come to us. They have an excellent team of partners, lawyers and support staff. They have strong relationships with long-time clients who value their service. And they have built a knowledge base from their experience within a unique set of practice areas that is extensive and valuable. Where they normally need a boost is in the area of ​​efficiency. And a law firm, like any other business, needs to maximize efficiency if it is to compete and grow in the long term.
Time-saving technology tools like case management software help law firms meet this need. But there are so many of these tools available from so many different providers: case and document management, time and billing, accounting, scanning, reporting, etc. – it’s hard to know where to start. That’s where an integrated practice management system comes into play. Law firms that properly use these systems gain an advantage over companies that don’t, both in terms of efficiency and overall productivity. To better understand how, let’s first take a look at the relationship between people, technology, and productivity.
Business managers often talk about three ways productivity can be increased: more manpower, more investment in technology, and third, increases in the level of efficiency between the two. It is this last piece of the puzzle that is often the most elusive. You can have a strong team with great talent, and you can choose to reinvest your business profits in productive technology assets. But for many businesses, and law firms are no exception, there is often a substantial gap between the amount of output a business is capable of producing and the amount it actually produces. Business analysts refer to this relationship between people and technical resources as total factor productivity, which examines the level of efficiency between these two resources. In a law firm, we can take the same approach to determining whether people and technology are being used correctly to produce the highest levels of efficiency and, ultimately, profit for the business.
In a nutshell, to increase the output, we must look closely at the input. There is a saying that “if you always do what you have always done, you always get what you always got”. What this saying lacks in sophistication, it makes up for in common sense. If deficiencies found in your management software are what you “have,” then it’s time to consider what software convergence can do for your bottom line.
Unless your law firm is completely different than most, there’s a good chance from a people’s perspective that your attorneys and support staff are already pulling out all the stops, regularly putting in long hours to stay on top of cases. big and growing. loads After all, lawyers have long had a reputation for being among the hardest working professionals in any industry. And given the high costs associated with adding additional staff, it would not be surprising if the greatest scope available for improving efficiency within a law office is often found on the technology side of the equation.
When we talk about efficiency, of course, what we really mean is time. After human resources, time could be considered the next most precious resource within a law firm. Splurge, and you’ll soon find yourself struggling to stay afloat. However, manage your time to the fullest and you will reap the benefits in the form of increased profitability. Practice management systems are primarily designed with this goal in mind: to help law firms work more efficiently to save time and produce higher profit margins.
The simplicity of these systems can be deceiving. A practice management system, by definition, encompasses a number of operational areas: case and document management, accounting and financial management, business intelligence and reporting, and even marketing and business development. For defense and transactional companies, time and billing features are also included. For claimant/contingency businesses, a system could include call receiving and settlement processing functions.
So much functionality under one roof can seem daunting. In fact, nothing could be simpler. All of these features are critical to the day-to-day operational needs of any law firm. Inefficiencies can arise when a “best-of-breed” approach requires staff to use multiple systems running on separate databases, especially when there is potential for incompatibility between them. Additionally, the need to enter data multiple times into multiple systems can have a taxing effect on a company’s productivity and increases the risk of error. As a result, time is wasted and your technology doesn’t live up to the reason it was implemented in the first place.
Taking a look at some of the time-saving benefits helps us better understand what can be achieved with a fully integrated practice management system:
1. A system equals greater efficiency
Comprehensive systems eliminate the need to evaluate, purchase, link, and maintain a variety of software products from a variety of vendors. Companies save money on IT costs and reduce the time and effort required to train employees. Also, these systems use only one database. This eliminates duplicate data entry and helps ensure that the information in the system is always accurate and up-to-date. Attorneys and staff work more efficiently in this environment because there is no need to work on a disparate variety of software systems.
2. Shortcut tools for timekeepers
Defense and transactional businesses benefit greatly from advanced time entry tools that offer enhanced review and pre-invoicing capabilities. With these systems, timekeepers have direct access to all the time entry data they have entered into the system, allowing them to make changes and corrections as needed before submitting it for final billing.
3. Instant access financial summaries for case management users
Practice management systems allow users in the main office (case management) to access views of outstanding invoices on the go. Attorneys and staff can better understand the financial history of a client they deal with on a daily basis. Authorized users can easily view information that typically requires people to submit data requests to the accounting department. No longer is it necessary to call or email accounting for information on trust balances or old accounts receivable related to client accounts or cases.
These time-saving benefits represent just the tip of the iceberg. Case costs, for example, are easily managed through features that allow attorneys to enter costs into the system. That information is automatically sent to the accounting department, which can then issue the payment with the push of a button. Plaintiffs and contingency-based firms can also enjoy the time-saving benefits of having easy access to case costs, referral fees, and a variety of relevant financial information through automated settlement statements. These systems help speed up negotiations between the parties. At the time of settlement, the funds are automatically processed and disbursed, saving a significant amount of time and effort on behalf of the business.
Close the output gap
By focusing on the relationship between people, technology and productivity, law office managers can zero in on the factors that are keeping the business from reaching its true potential. It is simply no longer enough for companies to focus on being highly effective without emphasizing being highly efficient as well. Managers must gauge the current gap between potential output and actual output, and take practical steps in the right direction.
Technology, once overlooked by many law firms, now offers the best opportunity to bridge the gap. The vested benefits in the form of real time-saving dividends provided by integrated case management software will ultimately enable companies that are doing the right thing to also do it right. If you’ve considered shedding excess baggage and implementing a single, all-inclusive software system that handles all of your business processes under one roof, let me conclude with this double entendre: Isn’t it time?