4 Signs Your Law Firm Needs Legal Tech (Even if You Already Redesigned Workflows)

Some law firms remain unconvinced of the need to invest in legal technology. Indeed, there are no perfect legal technology solutions. But when something as simple as an electronic signature makes a busy client's life less hectic, finding ways to leverage technology to your and your clients' advantage becomes imperative. Here are four red flags that signal it’s time to investigate technology solutions:?

Redesigned workflows still leave lawyers feeling overwhelmed.?

Was there a time when paperwork kept getting lost, and approvals were delayed? When it took hours or days to find specific details needed to move projects forward? And last-minute discoveries of errors stalled progress as deadlines barrelled toward lawyers like speeding trains??

This is when many firms redesign task workflows and internal processes to enhance efficiency. Teams try to eliminate redundant and unnecessary steps wherever possible and make finding information easier.

Yet, many firms find that work still takes too long to complete. Missing documents and signatures and incorrect entries still cause delays. There are still communication issues to resolve. Lawyers and staff remain tethered to the tracks as the metaphorical freight cars crash through their offices at top speed.

Sound familiar? Revamping workflows helps, but legal technology has now become mere table stakes. To manage the complexities and speed of today's legal work, lawyers need technology tools that continually optimize everyday activities and automate legal matter management processes. A recent Bloomberg survey found:

• 86% of legal professionals use legal technology to improve productivity.
• 71% use it to improve workflows.
• 66% use legal tech to meet client or organizational demands.?
• 65% use it to improve the quality of work.

Meanwhile, two-thirds of law firms expect their technology investment to increase over the next three years.?

You lose profits from too many write-offs and write-downs.?

How do you know tasks take too long? When your firm cannot bill for large portions of time worked. Partners often write down billable hours before invoicing clients. Clients also request write offs, pushing back on high hourly fees for tasks technology or staff can perform more cost-effectively.

It’s difficult to get to the root of the issues causing these profit leaks without legal analytics tools. You need the ability to track and monitor who performs what work, along with the associated resources and fees, to assess how cost-effectively your firm functions. Analyzing other factors, such as overdue invoices, write-down requests, and work-in-progress delays can reveal ways to optimize billing and communication workflows.?

Seven out of ten firms plan to implement legal business intelligence solutions over the next two years that will improve data visibility. As a result, they can please their clients while protecting their profits. Analytics help to determine where automation can perform everyday unbillable tasks, such as generating, organizing, and assembling documents. And legal matter intake and triage tools allocate incoming work to the most cost-effective resource automatically.?

Remote workers struggle to connect.

In a 2022 ABA report, 87% of lawyers reported that their workplace allows them to work remotely. Most lawyers said remote or hybrid work improved their capacity to balance work and family, deal with biases at work, and maintain mental health.?

However, remote workers risk missing out on collaboration and career advancement opportunities without cloud technologies for complete and uninterrupted access to firm files and resources. They must work extra hard to stay in the loop and get noticed. They could take too long to respond to client inquiries.?

Contract and document automation solutions clarify roles and speed up processes. Access to a firmwide document template repository can significantly aid consistency and reduce errors. User-friendly dashboards with built-in reporting and notifications keep remote workers in the know, and they can share documents and collaborate with colleagues and clients in real time for more personalized service.?

Clients demand that law firms adopt legal technologies.

Eighty-two percent of law firms have seen an increase in client demand for financial transparency since the pandemic began, according to a 2022 survey of US and UK law firm financial leaders.?

One way clients accomplish this is to establish guidelines for how firms staff and bill matters, detailing everything from which lawyers can perform what tasks to how timekeepers label time entries. In a survey in which 91% of attorneys said legal technology improves client services and is crucial to meeting client demands, the largest share of respondents (79%) report using billing tools. Often these tools allow clients to track a firm’s compliance with billing guidelines and analyze costs digitally.?

Some clients also prefer online portals for instant messaging and fast access to documents. Portals are conveniently secure places to share evidence and background information, and clients appreciate how they help save the environment.?

Law firms that don't recognize these red flags and adapt accordingly risk alienating themselves from clients, employees, and the practice of law itself. For over 25 years, Amicus Capital has helped law firms adapt as technological advancements bring new expectations. Call us at 877-320-5895 to learn more about how we can help your firm thrive.?