publication of the International Legal Technology Association
Issue link: https://epubs.iltanet.org/i/535467
ILTA WHITE PAPER: JUNE 2015 WWW.ILTANET.ORG 16 Technology itself can have interesting effects on a client's attachment to a particular firm. Process management has already allowed some of the larger firms to move toward a single-supplier model to increase client loyalty. In their innovative lawyers section last year, the Financial Times reported that "law firms will increasingly need to capture clients and be able to serve them across their business needs, from top-end legal advice to everyday legal matters to implementation." USING TECHNOLOGY TRANSPARENCY IN PARTNER TRANSITIONS One area where better data could benefit firms is lateral hiring. In recent years, lateral hires have become the lifeblood for firms seeking to increase revenues despite decreased client demand. In his report on the 2014 lateral hiring market, Robert Kinney writing in Above the Law found that "2014 was a great year for the many firms that now measure overall success by the success of their lateral hiring program." He identified two major trends in lateral hires: There has been a sustained upswing in the lateral partner market over the past three years, with big law firms pursuing lateral hiring as an important part of their growth strategy Over 75 percent of the largest U.S. law firms have hired 10 or more lateral partners over the last five years Firms need the best data available to make these important lateral hiring decisions. Much of the legal technology designed to enhance the firm- client relationship could also be used to analyze the relative strength of a partner's book. The same can be said for existing partners. If a firm fears that a partner might leave, transparency applications can determine the value of that partner to the firm. Better data will translate into smarter decisions in partner transitions. MORE OPTIONS WITH NEW TECHNOLOGY TOOLS Monitoring projects in this manner is useful only if corrective actions are taken based on the data. For example, too many hours being logged on a matter could indicate scope creep, with fee-earners doing more than originally contemplated. Dealing with the issue immediately instead of after the project is more likely to have a positive outcome. Likewise, when an anticipated profit margin is suffering TECHNOLOGY: CHANGING THE ATTORNEY-CLIENT RELATIONSHIP FOR THE BETTER! because the leverage is not where it should be, proactive firms can act quickly to bring the leverage back within acceptable boundaries, rescuing the expected profitability of a matter. Thanks to advances in legal technology, firms now can increase their efficiency and profitability while engendering a more productive and transparent relationship with their clients. While these new options can be complex, the most productive first step involves examining firm processes and increasing data flow to clients. EVERYONE WINS BY ADAPTING TO THE NEW REALITY It is amazing to think that almost none of the technological capabilities discussed here were widely available just five years ago. Technology is truly altering the way law is practiced, and the focus on profitability and efficiency is bringing the global legal industry much closer to the "best practices" standard of the business world. While the transition to improved business practices and advanced technology can be challenging, both firms and clients benefit from better information transparency. Decisions made with the best available data will always trump those made on hunches or false assumptions, and strengthening the bond of trust between firm and client will lead to a better long-term working relationship. 672 1,259 1,436 1,344 1,376 2010 2011 2012 2013 2014 Total Partner Lateral Hires