Small Law Firms

Is It Time To Trade In Your Software For A New Model?

Is it time to upgrade?

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Back in the day when technology moved at a slower pace, most solo and small firm lawyers stuck with tech systems or software for decades, changing only when the product was no longer made or nearly obsolete or had become cost-prohibitive.

My own experience highlights the kind of longevity that most software products enjoyed back in the day. When I started my law firm in the early 1990s, I’d grown accustomed to Word Perfect from my time as a law firm associate and never considered any other word processing package. Even as MS Word gained traction and new systems like OpenOffice came on the scene, I stuck with Word Perfect for at least 15 years — even foregoing a move from Windows to Mac because the Mac wouldn’t support Word Perfect. But by 2007, I had no choice but to make the switch. My clients and many of my colleagues had all switched over to Word, and they couldn’t easily open or edit the documents I prepared for them.

Likewise, many of my colleagues stuck with legal research products like Westlaw and Lexis for decades simply because there were no viable alternatives. That’s since changed with the advent of robust competing systems like Fastcase. As a result, many of my solo and small firm colleagues — even those who’ve used WEXIS products for a quarter of a century are moving to competitors simply because they can’t justify paying hundreds of dollars of month when nearly equivalent services (that continue to improve) are available for a fraction of the cost or even free.

But now, with technology advancing faster than ever, even new software tools have a more limited shelf-life. Take, for example, cloud-based law practice management platforms which have been around for roughly a decade. Seems that every month, I hear of at least a half-dozen attorneys who’ve changed from one platform to another either due to price increases or in search of features that their existing platform lacks. And though granted, my limited observations are hardly scientific, the point is that a decade ago, I’d be far more likely to see attorneys staunchly defending their choice of tech, rather than inquiring about new systems or reporting a move to another.

If you’re wondering whether it’s time to think about moving from one software platform to another, here are a few factors to consider.

Does your system serve your clients’ current needs?

The most important question to ask in evaluating a switch from one software product to another is whether your current system serves client needs –which may change over time. For example, even as recently as five years ago, many clients lacked interest in using a portal, preferring the convenience of email, while lawyers still found email security adequate to protect clients. Today, that’s no longer the case; clients are now accustomed to using online portals for banking, healthcare, and other professional services, and as a result, expect similar services from law firms. Moreover, the risks of emails have grown, culminating in ABA Formal Opinion 477R, which strongly suggests that email may no longer afford adequate security in many circumstances, necessitating the need for alternatives like portal. Increased client interest in using portals combined with added security has led many attorneys to jump ship from cloud-based practice management platforms which either lack client portals or have portals that are clunky and complicated to use.

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Client demand may also lead lawyers to consider solutions they might have reflexively rejected in the past. Many younger clients no longer use email, favoring texting instead. Though some lawyers adamantly refuse to text with clients, others are now seriously exploring or adopting secure texting apps as a supplement to other types of electronic communications.

Bottom line: even if you love a software product so much that you’re reluctant to part ways, clients’ needs often trump lawyers’ preference.

Cost

When many new legal software products launch, they may offer a price designed to lure attorneys away from competitors. Some companies may keep the price at the entry level but grandfather new customers. Others may raise rates, but offer new features, others may add features without changing the price and still others may not develop a particular feature, but will offer a discount and integration with a third-party provider. Although the price differential between the various platforms for a one or two person firm is only a few hundred bucks a year and doesn’t justify the hassle of jumping ship, as the firm grows, the costs add up, particularly if a firm is paying for other subscription services for CRM (client relationship management), payment or form automation. Cost differential can be even more significant for analytics products or legal research tools — so lawyers may want to avoid locking into long-term contracts with so many changes in the market.

Future Value

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Many lawyers on the verge of retirement are winding down using the same paper filing system they created back in the 1970s, or practice management systems on local machines. Since they’re winding down their practices, these older lawyers may assume that transitioning to cloud-based systems isn’t worth the bother. But lawyers who have an interest in passing their firm down to the next generation or selling to another practice may find they can squeeze more value out of their firm if they upgrade to a modern infrastructure so that their successors can hit the ground running.

Have you moved from one software service or product to another and if so, why. Drop me a line at [email protected] and let me know your experience.

Carolyn ElefantCarolyn Elefant has been blogging about solo and small firm practice at MyShingle.comsince 2002 and operated her firm, the Law Offices of Carolyn Elefant PLLC, even longer than that. She’s also authored a bunch of books on topics like starting a law practice, social media, and 21st century lawyer representation agreements (affiliate links). If you’re really that interested in learning more about Carolyn, just Google her. The Internet never lies, right? You can contact Carolyn by email at [email protected]or follow her on Twitter at @carolynelefant.

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