Technology has long been a challenge for mid-size law firms. Mid-size firms often feel challenged to adopt new legal tech, clinging to outdated systems and processes that hamper productivity and client service. But the playing field is leveling. Cloud computing and Software-as-a-Service (SaaS) models provide access to enterprise-level tech on a budget.
Upgrading technology should be viewed as an investment, not an expense. The cost of implementing new solutions pales compared to the cost of remaining stagnant.
Is your “technology stack” equitable?
Traditionally, robust platforms came with a hefty price tag only within reach of well-heeled firms. The emergence of cloud computing has brought enterprise-level capabilities to businesses of any size. Solutions delivered through the cloud provide unmatched flexibility, security, and savings.
Take stock of the systems and software powering your firm. Is your tech stack still anchored by on-premise servers with locally hosted software and documents? If so, you’re missing out on the flexibility and scalability of the cloud. Solutions like practice management, document management, billing, calendaring, client relationship management, e-discovery, and virtual data rooms are now available as cloud-based services with predictable subscription pricing instead of substantial upfront capital expenditures. Suddenly, firms don’t need an army of IT staff to deploy and maintain systems. Ongoing costs are predictable and scalable. This democratizes access to cutting-edge capabilities for mid-size firms.
Are you maximizing collaboration? The cloud facilitates secure access to client files and firm resources anytime. This enables remote and hybrid work arrangements that attract top talent who want flexibility. Streamlined collaboration across practice groups and offices helps break down organizational silos and promotes knowledge sharing.
What is the cost of change?
Shifting to a new tech stack requires an initial investment of time, money, and leadership commitment. However, wise firms realize they must occasionally spend money to make money. Improving tech should be considered vital rejuvenation, not just an added expense. With research and planning, firms can accurately weigh costs against near-term pain and long-term gains.
Change management is also crucial. New systems mean new workflows. Without proper training and buy-in, firms risk frustrating staff and blunting ROI. Patience and understanding smooth the transition. Maintaining focus on the big-picture benefits, firms can migrate successfully with minimal financial risk or cultural upheaval.
However, the incremental costs of change pay dividends over time. Wise technology investments shouldn’t be viewed as expenses but rather as long-term assets. Failing to adapt puts you at risk of being left behind by more nimble competitors.
What is the cost of NOT changing?
By far, the most significant risk is sticking with outdated systems and timid adoption of new technology. A firm chained to manual processes and aging systems is seriously disadvantaged. Professionals lose productivity waiting for documents, insight, or approvals. Clients perceive the firm as behind the times, raising doubts about technical savvy and business acumen. Unforced errors and overhead costs multiply.
Sticking with outdated technology has significant hidden costs:
- Inability to meet client expectations
- Wasted time/lower productivity from manual processes
- Higher overhead without scalability
- Inferior security/compliance/governance
- Missed opportunities from lack of insight into data
Rather than build capabilities, the firm remains frozen. Unable to do more with less, they lose ground to the competition. A conservative mindset cements the firm’s second-tier status. In contrast, prudent investment in technology allows the firm to capitalize quickly on new opportunities.
Tech is an investment, not an expense
To keep pace in the modern legal market, mid-size firms must adopt the mindset that technology spending is an investment in the future, not a cost center to be minimized. The actual expense is persisting with legacy systems that handicap competitiveness.
Cutting-edge tools make professionals more agile and efficient, allowing them to deliver greater client value. Streamlined workflows and access to client data foster stronger relationships—insights unlocked by analytics help plot strategy and business development. The returns easily justify moderate upfront costs.
Rather than an anchor on the balance sheet, technology is a springboard to growth. Firms realize the most significant gains when new systems are implemented holistically across the organization. With training and commitment, technology delivers productivity, client service, and vision — the astute mid-size firm views upgrading as an investment in its equity. Wise deployment of technology closes gaps and sets the stage for the future.
