How to control increasing IT costs for law firms (and other professional practices)

One of the main issues with firms investing in IT, Technology, Software or Tech is the?financial?commitment?required?and the?rising costs associated with onboarding?more?new solutions.?

Another risk is the change involved for their people. Will this work, will they adopt the change and will we be in a better position at the end of this?arduous?journey.?

?Any new IT or Technology is sold as something which will make the firm more efficient, yet there are many firms who?see?the?rising costs?associated with the new solution, but?never really realise the full returns?where they thought they would be... at best they end up with a diluted version where some people adopt the change, the majority of the firm is left behind, trapped in a new hybrid way of working with some old and some new!?

?This causes a challenge for firms, as most of the time they know that the new solution will bring benefits and efficiency (if the technology is implemented correctly, people are trained and the solution is adopted) but a lot of the time?the desired end result is never achieved.?

There is even a risk they could end up paying for a new solution, but actually end up in a worse position!?

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WHY??

Well one of the main reasons is because the reality of making an IT project a success requires a lot more than they?could initially anticipate.?It is not just an IT project (which requires specialist skills and resource) it is also a change project!?

Larger firms have the ability to deploy their IT team to help support the?new solution?and?try to?make any investment?a success for the?firm. They have the?IT?skills and resource to deliver this, but still some fail because the overall project and change management is not a success. It takes more than just the technical skills required to implement a new solution.?

Smaller firms (<150 staff)?are in an even tougher position. They?will typically not have?any of?the?skills and expertise required?(and available)?to make the project a success. They are?led by?suppliers;?and reliant on them to deliver the end?solution but?there are gaps which start to appear.?

The suppliers can provide the end solution and have the knowledge of this, but they do not have the resource or ability to manage the project and protect the best interests of the firm.?They do not understand their people and how they work day to day across the different departments and areas of practice.??

This is where the?real?challenges occur and why I am in business...?because I help?smaller practices in this area and help them make their IT projects a?success.?

Making a change happen in a professional service business is not easy.?There are lots of other elements to consider, mainly around people, their current position, the?way they have to operate versus the new future state.?It has to work for them?and for clients to make the whole firm?more efficient.??

Firms typically hear?(from a supplier) ”it’s fine we have done this before for a similar firm”, but they know deep down that the reality of the situation is more complex. There?is?a?lot the supplier doesn’t know and making this project a success will not be straightforward. Compound this with the concern over a supplier making out that this will be straightforward adds more risk and concern to the project.??

These fears are real and you should listen to that internal voice when you hear it!?

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WHY IS THIS RELEVANT??

Well, one of the main reasons firms struggle to control their IT costs is because the new costs come in (100%, as soon as the new solution is activated), but the old costs associated with the previous way of working will not reduce or be eliminated from the business. They cannot be removed from the business?if the?project is not a success,?the?change?or?user?adoption?has not?taken?place. This is essential to the financial success of the project.?

Imagine deploying a?post scanning and?Paper-lite solution to remove print and paper from the business. That cost will immediately hit the business and increase?the operating?costs?once the new software is purchased. You will also likely have an additional cost and resource requirement to scan the post and?s solution which will likely?interrupt your people in a new way!??

Now add in the impact of the?department not being re-engineered to the new digital way! You will have people being?alerted digitally?and?could be?frustrated?with the new system,?but still have part of their day operating in the old way because the change wasn’t complete. (There?are?lots more details?to this?example but I think?enough?people?have experienced this type of issue?to leave this here).?

The financial benefits are never realised if the old way of working is not changed?(or eliminated)?to the new?way. To do this takes a lot more than just implementing a new piece of software. It is not impossible, but it is far more work than simply implementing a new solution, this is only?one piece of the jigsaw.?

This departmental change is not something a?software?supplier will be involved with.?

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SO WHAT??

Well, there is a lot of risk involved with deploying IT and Technology into a professional services business. Yes, there is the financial cost?and lots of opportunity,?but one of the main?risks?is?around?people and their time.??

Any change is a risk, not only with the time involved in running the?solution element of the?project, but also the?overhaul required to make new IT and Technology a success.??

If you want to deliver an improved efficiency without?ever-increasing?costs, then all elements of this need to be a success for the project to deliver results.??

If the?new?technology?is?not?implemented?correctly?and the change doesn’t take place then?your?people?will?end up in a?more complex and frustrating position, worse than it?was?before,?with extra costs?for the business!?

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WHAT TO DO??

Don’t take on an IT project unless you can commit to the full operational change required to make this a success.?

This requires additional work over and above the solution being implemented. The solution comes in at?the later stages of the project?(although it may be one of the reasons to trigger a review or change).?

First you need to identify the opportunity and business case available for the firm,?if the project is a success.?Understand what real hard costs?can?be removed from the business.?What will the end financial position?be?(hard costs out versus new costs in)??

Then you need to start the work on understanding the current?operating?process, how your people work at the moment, what works for them and what doesn’t.??

How the end solution needs to deliver?for them, so they can adopt this,?and what considerations need to be part of the project.?

Only then, once you have the business requirements built and agreed by the users, along with the proposed end solution,?again agreed?by the users, should you start to make any changes.?

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WHAT AM I SHARING THIS??

Well,?there is a lot more to IT projects that initially meets the eye, especially within a Professional Services business.?

If IT Projects are not a success then you essentially end up bolting a new solution (and its associated costs) into the business, without realising the benefits from transitioning from the old way of working. This leads to incremental rising costs over time. Ones which are hard to remove from the business!

Firms need to protect their position and make strategic change happen in order to realise the results.

If you want to make?IT Projects?a success you need the right skills and expertise to do so.?You also need to be aware that this is a larger project than you initially thought.?

Yes,?these are temporary resource?and skills requirements.?I can help with this, but if you are suffering from ever increasing costs,?as a result of?partially?successful?IT?and Technology?projects?then?think before you start another.?

Speaking with a supplier about a solution is only one?of the project phases, and there are three others which have to come before this?one!?

Before you embark on a new IT and Technology Project, think about the?(historical) low hanging fruit where you have already invested in IT and you need to go back to change the position?and complete the project. Areas where you need to?complete the change and improve the?poor results delivered from previous projects. There are areas where you need to?realise returns?from investments already made and improve the working environment for your people.?

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LET’S TALK...?

If you have previous?IT Projects?where a return has not been?realised,?I would be happy to speak with you and discuss how?I?might help turn things around.?

I am?a Strategic IT Consultant?who operates on a Freelance / Contract basis. I?specialise?in working with law firms and other Professional Practices to make their IT Projects a success.?

If you would like to find out more,?feel free to view?my LinkedIn?profile. I have a capabilities statement online and you can also?use?this?link?to arrange a call so we can discuss your current position and desired future state.??

I would be happy to offer some?initial?advice on how to get?you?there (no charge, or obligation) and you can decide whether you would like?further?external expertise to?support you with the changes (or fixes) which need to take place.?

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Thank you for reading this post.?

Yours

Alex Hutchinson?- Strategic IT Consultant for law firms and other Professional Practices??

(Freelance / Contract)?