Peer to Peer Magazine

WWW.ILTANET.ORG 69 2) ON THE OTHER HAND, AUTOMATION WILL ALLOW YOU TO THRIVE Increased automation — for producing documents, generating invoices and more — reduces errors and saves time each month that can be devoted to more client activity and billable hours. Technology is now so powerful and affordable that firms that successfully wield it greatly outperform those that don't. A small, paperless law firm with a mobile practice management system can compete just as effectively as any large law firm. An attorney with boxes full of documents is no match for an attorney who can use an Evernote offering to pull up any file ever needed anywhere, at any time. For most small law firms, the fabric of their reality is so tightly woven that life is unthinkable without filing cabinets, 15-minute searches for documents and two-day billing marathons in which invoices are reconstituted from legal pads. Highly automated firms do not share these tribulations and inefficiencies. They also use document assembly software to produce fresh and accurate new documents that don't need to be proofread for embarrassing mistakes. And as powerful document generation tools become less expensive, easier to use and integrated with existing tools like CRMs, their use will become more prevalent across the legal spectrum. The digital divide between small firms that access and utilize technology and those that don't will become more pronounced in the future. The divide will only widen as time goes on and laggards continue to refuse to embrace technology (or join the party with the late majority). 3) THE BILLABLE HOUR WILL NOT DIE As someone who works with thousands of small law firms, the predicted demise of the billable hour will not happen. Flat fees might be appropriate in some instances, and it's entirely possible more work could be billed in an alternative fee arrangement. But litigation has too many unknowns and wild twists, and even the firms with the most advanced knowledge of their billing practices are vulnerable to a bad pricing decision. All cases have similarities, and litigation goes through the same stages every time. But well-meant theories and data from previous cases will not work for small law firms. In a large law firm, more volume will mitigate the risk of inaccurate pricing, much as insurance companies can employ actuaries to win more times than they lose. Even then, the advantage of moving exclusively to flat-fee billing is dubious. Litigation is a lot more dynamic with many more pieces of data than the vital statistics actuaries use to calculate insurance risk. Small firms do not have the volume of work to compensate for statistical outliers that will wreck their alternative fee models, and a single large loss could cause them serious economic damage. 4) THE FUTURE IS NOT ROSY FOR SUPPORT STAFF If you were starting a law firm today with two attorneys, would you hire a receptionist or bring on an associate or paralegal? Would you invest in on-premise software and servers? Or would you purchase cloud software that doesn't require servers or IT support, use a virtual service like Ruby Receptionists and minimize payroll with contract attorneys? New tools and technologies do not bode well for office support positions. Services like Ruby Receptionists thrive because of easily configurable VoIP systems and call forwarders, providing a law firm with a friendly person who is 100 percent reliable (no sick days) and quality controlled. Fully reliable support personnel are otherwise rare, golden hires for busy attorneys. Solo and small firm attorneys can manage billing without an in-house specialist thanks to easy mobile time- capture on smartphones. These systems integrate directly with invoicing; the lack of hardware saves attorneys the expense of IT support. In addition, robust reporting tools available through the cloud reveal clearly which employees are especially profitable. Just as market forces dictate the difficulty of tossing out the billable hour, firms weighted down with support staff will not be as profitable, reliable or nimble as those with a tighter payroll. LET THE FUTURE UNFOLD It's true that when the singularity hits and we have artificially intelligent attorneys and judges, we might need to step back and reassess things. But we'll merely have bigger fish to fry as our flying, driverless cars evacuate us to the hilltops to avoid coastal flooding from the melted polar ice caps. Until then, small firms can evolve with changing workflows and technologies to remain competitive. About the Author Larry Port, CEO and Founder of Rocket Matter, helps brings the business of law into the 21st century by breaking down complex business processes and arcane technology concepts into easy to understand, humorous and engaging sessions. He emphasizes a pragmatic approach to efficiency, simplicity and productivity for legal professionals. At the crossroads of the legal profession and cutting-edge technology, Larry has published extensively in legal publications, conducts free monthly webinars on emerging topics for attorneys and speaks at bar association CLE's around the country. Contact him at larry@rocketmatter.com or on Twitter @larryport. A small, paperless law firm with a mobile practice management system can compete just as effectively as any large law firm.

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