Profitability: technology is not being used properly to strengthen client-customer relationship or is under-used

The technology exists to help law firms become more effective and profitable but it is not being used properly, preliminary research conducted for the Legal Software Suppliers Association (LSSA) has revealed.


Ahead of its conference next month, the LSSA gave the Gazette an exclusive look at the research it has done across a range of law firms and business providers.


The project - which involved some 80 interviews and more than 200 questionnaires - highlighted the increasing need to move towards a much more business-orientated legal profession that uses IT habitually and effectively. Systems are either not being integrated by suppliers, leaving it to struggling firms to piece together, or are being drastically under-used.


The report also pinpointed a lack of effective leadership in developing business solutions using technology.


Allan Carton, managing director of Practical Solutions, the research firm hired by the LSSA, said: 'Overall, there is plenty of technology available - it is just not being used effectively to strengthen the client-customer relationship.


'Medium-sized firms (and smaller firms with innovative partners) are likely to be the most capable of responding to imminent changes in the profession. Very small practices need to consolidate or collaborate to be assured of a future. The large firms may feel comfortable and protected in the short term but, unless they begin to be more pro-active, they will suffer in the future.'


One managing partner's responses to the questionnaire seemed to sum up the challenges facing the profession. The partner said the main hurdle was 'changing lawyers' priorities, to do the things they never find time to do - managing clients, managing people, managing the business. Lawyers think they can do anything, but they can't'.


Link: www.lssa.co.uk






The research's findings include:


  • A lack of effective leadership, management and communication in developing innovative business solutions supported by technology;


  • Effective integration of internal systems with external business partners and business introducers leads to substantial returns, justifying investment;


  • Firms must make more of the technology already available by tackling 'people and culture issues'; l IT can provide (relatively) easy wins when applied as solutions to help complete management of the supply chain;


  • Use of video as an effective means of communication is likely to increase substantially; and


  • It is up to the lawyers to innovate and develop IT solutions that clients do not care about, and deliver the service at a cost they do care about.