Some law firms, regardless of size, seem to enjoy an easily won edge in the market.

They might be somehow one step ahead of the market or enjoy a workforce that seems to easily pull in the same direction. They might have clients that seem incredibly well served and are even advocates of the law firm.

If you are a law firm leader that looks across at your competitors and wonders what they’re doing that you’re not, it might be worth considering technology. Not just buying in a new practice management system, or implementing a PowerBI results dashboard, but embedding technology as an approach.

Embedding technology in the culture of a law firm, throughout law firm processes and controls, with clients at the centre of your approach, may provide the competitive edge you’re after.

And the great news is that technology is entirely available to small as well as larger law firms at an accessible price point.

From an internal perspective

• Management: To get maximum benefit from the information held in practice management systems, many firms are successfully implementing business intelligence tools such as Katchr. These enable management to improve efficiencies and profitability, and better manage risk. This isn’t just about the technology but is about improving ways of working and implementing strategic objectives.

• Automation and integration between various tech platforms: This isused by law firms to enable slick processes and remote working without compromising quality. We are seeing law firms put a lot of work into integrations between various systems (practice management, accounting, document management, Outlook, Teams, CRM etc). Using systems with poor integration and handling of data between different teams is incredibly inefficient and risky. Just taking payments as an example, they can be missed or duplicated, and errors can be made in the amount to be paid or with bank account details. In the worst instances, frauds can be perpetrated.

Firms can now invest at fairly low cost in workflows enabling one process that the lawyer, authoriser and accounts use to organise the payment, for example. Data is keyed in once, it is subject to various checks and approvals, and then the payment is made automatically through the bank. The data is saved securely in all the right places and therefore data quality is also assured.

From a client facing perspective

• Updates anytime: Pressure on the fees law firms can charge, combined with clients’ preference to use online legal services that they can access any time, has resulted in innovation and technology to automate through client portals processes such as personal injury and conveyancing, and even complex corporate projects. Firms that invest can expect to see increased profitability and improved client satisfaction levels. However, tech investment must be managed effectively – putting in place appropriate protections for client data and SRA regulated processes, and ensuring clients still have a personal experience when they require it.

• Service lines: Clients don’t see any demarcation between legal services and non-legal services – they want a whole service to suit their needs. We are seeing law firms expand outside of legal services to other complementary work that clients need – and these needs are increasingly tech focused, or as a minimum tech-enabled. We expect to see more of this in the market as law firms offer increased value-added services for clients.

• Pricing opportunity: Remote working practices and inflationary pressures are combining to put mid-sized law firms in a great position to challenge larger London firms, particularly when expert advice can be delivered by the regions. Many clients, especially corporates, are aware of the significant London salaries paid to junior staff in larger firms and are looking to reduce costs and maintain quality as inflation hits. This is leading them to review their legal services providers. Technology enables more of a remote client delivery method – not just through Teams or Zoom, but tools such as live collaboration through virtual whiteboards, drawing out client solutions, for example. Many firms have this capability, but not many use it to its full advantage like we see in other types of professional services firms.

• Diversification or divestment? Legal services work is increasingly splitting into two types: high volume/low cost, and high value add, personalised services. We expect a mix of strategic approaches by law firms to this change in the market – some firms may divest activities to focus on one of these in depth– for example, significant investment in technology combined with less qualified staff mixes for strategic advantage in high volume/low-cost service lines, while other firms may see more strategic advantage in diversifying across both types of work.

It is clear there are a range of options for law firms to develop their competitive advantage and indeed improve their resilience in difficult times. We would recommend that firms work with a strong advisor who understands their market well, to identify and implement the best solution for them.

For further information please visit: www.evelyn.com

by Claire Burden, National Advisory Consulting Partner at Evelyn Partners