Software solutions - people, culture, process and technology
For many firms, the introduction of a technology system is still seen as an opportunity for a 'big bang'-like improvement in productivity and cuts in overheads.
A case of 'the first thing we do is sack all our secretaries'.
If this is your attitude, then you will be disappointed.
Technology alone - without accompanying changes to the way all members of your practice (and this includes partners) operate - is unlikely to generate any marked improvements in efficiency.
In fact, in a worst-case scenario, you may find it actually increases your total head count, as along with all your current staff you also have to employ a network manager or IT administrator to help run your new computer system.
The stumbling block for many firms is their insistence that any computer system they buy should fit in exactly with the way they already operate.
'Why should we alter the way we work just to suit the computer?'
Unfortunately, this misses the key point that unless a firm is ready to change the way it works, there is no scope for any productivity gains.
If a firm is not prepared to be flexible, then not only is the computerisation exercise likely to be a waste of money but the duplication of automated and manual processes will increase overheads and cut profit margins.
For example, while sacking all your secretaries may be unrealistic, you should at least try to cut the length of your firm's 'administrative tail' by improving fee-earner-to-secretary staff ratios.
In many firms, this is still a 1:1 ratio with one secretary for every fee-earner.
This may be cosy but it also highly restrictive as it means every time you need to employ another fee-earner, you also have to employ another secretary, find office space for them and invest in the IT systems to support them.
Research suggests more efficient firms can improve this ratio to nearer 3:5, while some firms that have invested in office automation systems are reporting 1:5 ratios, with just one secretary supporting every five fee-earners.
Technology plays a role but it is only part of an equation best summed up by the acronym PCPT - people, culture, process and then technology.
So, to go back to our example, before considering whether to invest in a system, you should first address the people issues and the culture of your firm, such as whether your partners would actually be prepared to give up their personal secretaries and instead share them between a team of fee-earners?
Charles Christian is an independent adviser to the Law Society's software solutions guide
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