publication of the International Legal Technology Association
Issue link: https://epubs.iltanet.org/i/535467
ILTA WHITE PAPER: JUNE 2015 WWW.ILTANET.ORG 35 EFFICIENCY CHALLENGE: PRIORITIZE PROJECTS THAT DELIVER MORE VALUE THE ERA OF CLIENT FOCUS AND RESOURCE MANAGEMENT The need for a model that incorporates value-added services emerges from several changes in the legal profession in recent years, including: • Increased purchasing power of clients • Increased competition between law firms • Globalization and digitalization of legal services • Increased regulations affecting clients' businesses Buyers of legal services are demanding higher levels of transparency in pricing and staffing which reduces the profit margins for legal work. Across the profession, we see big firms getting supersized, small firms specializing and building strong global networks, and firms in the middle struggling to remain profitable. Law firms are also competing with their own clients for routine work. In-house legal departments openly discuss their plans to staff up to handle their own legal business problems, and they will do it at a fraction of the cost of hiring a firm that bills by the hour. In exchange for the cost of paying hourly rate fees, clients expect their lawyers to deliver insightful industry- and region-specific service in a more responsive way. Competitive advantage goes to firms that have the deepest knowledge about the client, can quickly identify risks and opportunities in the environments in which their clients operate, and have mechanisms in place to bring clear, targeted insights to the client. Projects that help firms gain such a competitive advantage must be prioritized. The goal is to identify projects that deliver this benefit at the lowest internal cost. ASSESS FIRM RESOURCES To deliver the value of more insightful, responsive, timely service, firm resources must be allocated effectively. Resources can be divided into three areas: infrastructure and systems, data and content, and communications. Costs are assessed in terms of time, money and people. Effective projects drive up the benefits to clients while driving down costs — finding ways to push down the costs of infrastructure and systems, making sure the right data are in place to quickly help the right clients and ensuring you do not overleverage your most expensive people resources. Infrastructure and Systems: Gone are the days when lawyers sat across from clients behind mahogany desks with a stenographer in the corner. Email messages, videoconferences, document exchanges and other digital touch points now dominate the relationship. As legal relationships become more global and digital, the number of systems in place to support client service can be staggering, but they are critical to the success of your value-delivery program. Prior to adopting a project evaluation model based on client value, firms should take time to draw their digital interactions with clients on an ecosystem map. These maps detail the main systems by which clients interact with people and information in your firm. Consider invoicing and billing, document management systems, client extranets, email marketing and social media. Do not forget about your behind-the-scenes programs, such as experience systems, staff availability and conference room bookings; all of these improve the ability of your firm to respond to client needs. Integration services and application program interfaces (APIs) are increasingly available to help save time and valuable IT resources, connecting data sources more easily with sophisticated triggers and alerts.