In a solo or small law firm, decisions are often based on cost. However, when it comes to technology, determining the true cost of a solution is complex. While ROI calculators like this and this help you understand your initial investment and the payoff, how do you determine:
- When it’s time to adopt new technology?
- Which technology would be best?
Begin by answering these questions:
- How much does my current technology cost?
Calculate how much you paid for a solution and what it costs to maintain it. Compare that to a new solution. Here’s an example:
Current Installed Practice Management Solution
-
- System purchase with a three-year license: $5,000 annually
- Onsite server: $2,500 annually
- IT support for server: $2,500 annually
- Costs for services not provided by system:
- Billing platform: $1,000 annually.
- Upgrades, support and training: $500 annually
Total cost: $11,500
New cloud-based practice management solution
- System and licensing: $65/month
- Onsite server: Not needed
- IT support for the server: Not needed
- Billing solution: included
- Upgrades, support and training: Included
Total cost: $780
New technology savings: $10,720/annually
2. Is it enhancing efficiency?
Review the repetitive work that happens regularly throughout the day, week or month at your firm as well as all of the non billable work that needs to be done in your law firm. Are those activities as efficient as they can be with your existing technology or are there still workarounds or manual processes that coincide with your technology? Efficiency should be your goal so you can work quickly and easily with little interruption or distractions from the higher value work at the firm and so you can minimize the time you spend on non billable work.
3. Who uses the technology and what do they think of it?
Involve everyone who touches the technology, from legal secretaries to paralegals to partners. Ask them how it helps or hinders day-to-day activities. Understand if they’re not using the technology to its fullest extent. Find out why they’re avoiding it and what the technology vendor can do to help. Note in your technology costs if you have to pay for that support.
4. What are must-have functionalities?
What do you love – and hate – about your technology? For instance, do you hate having to install and pay for system upgrades? Do you love working from anywhere? Again, get feedback from everyone.
5. Is it evolving with your firm?
Your firm has likely changed since your initial technology purchase. Maybe you’ve expanded into new practice areas or added staff. Is your technology adapting? For instance, are you strapped for office space or do you need to work outside of the office? Consider technology that allows you to work from anywhere.
6. Does the technology integrate with other key applications?
Does your technology play well with the applications that you use regularly, such as legal research or billing platforms? Or do you continually have to log in and out to access them? Consider how much time and effort that takes.
7. How secure is it?
Where are you storing your client and matter information and is it secure? According to the 2017 ABA Legal Technology Survey Report security breaches in the small law space have increased with 10% of solo firms and 27% of 2 to 9 attorney firms reporting security breach incidents. Make sure your technology adheres to security that equals or exceeds that of global banks in an effort to prevent a hack. Unless you’re continually investing in server upgrades and cybersecurity expertise, chances are your server’s security won’t measure up.
If you do decide it’s time to move forward with new technology, select the best for your firm by:
- Finding out immediately if vendors can provide your must-have features and functionality.
- Involving everyone in a free trial to evaluate the technology before signing contracts.
- Making sure vendors respond to everyone’s questions and concerns.
- Ensuring vendors will provide ongoing training and support at no extra cost – don’t purchase technology that collects dust because it’s not used or valued.
Technology exists to make our lives easier. The technology in your law firm should be making life easier at your firm. As a lawyer you sell your expertise and time and technology should be helping you make the most of it.
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Amy Larson is a Director in Small Law Firm Customer Marketing and Firm Central at Thomson Reuters. She has over 17 years of experience in technology marketing with extensive focus on learning how technology can meet the needs of attorneys. Amy has been involved in numerous product launches throughout her tenure, public relations efforts, interviewing customers and telling their stories, and often writes and distributes information on legal practice management.