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Technology is changing the way many industries do business, and the legal industry is no exception. The digital disruption in law firms is changing how firms operate from billing to client servicing. This embrace of technology in the legal industry is projected to increase. According to a Future Ready Lawyer report by Wolters Kluwer, 53% of lawyers across Europe and the U.S. indicated that their organization's technology investment will increase over the next three years.

As technology becomes more and more pervasive in the legal industry, managing partners are looking for ways to leverage innovative solutions to accelerate growth and increase profitability. To achieve this, managing partners are turning to practice management platforms that can improve security, client experience, operations, and the bottom line.

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Security

Cloud-based law firm software is changing the legal technology landscape. In a recent report by the International Legal Technology Association (ILTA) that surveyed 537 law firms, representing 116,000 attorneys, respondents ranked cloud as the number one technology trend they believe will create "significant change or be a major factor in the legal technology profession." The survey also found that 72% of respondents are increasing their adoption of cloud-based technology.

The security of client data is a top priority for managing partners and a major concern that keeps them up at night. The ability of cloud technology to safeguard large quantities of administrative, financial, and personal case information is driving increased adoption of more secure cloud technology. This is no surprise considering the significant reputational damage and financial cost—$3.92 million on average according to IBM's 2019 Cost of a Data Breach Report—of data breaches. And Gartner predicted that businesses that are on the cloud will experience 60% fewer security incidents than those that are using more traditional on-premise solutions.

Recognizing the need to move away from older hardware and infrastructure that can leave their firms more susceptible to cyberattacks, data theft and fraud, managing partners are shifting practice management to enterprise cloud-based platforms. They are adopting platforms that can handle large amounts of complex data while also providing end-to-end secure encryption.

A more mobile and distributed workforce is another factor driving the adoption of cloud technology in the legal sector. Cloud-based practice management platforms provide the ability to securely access data anywhere, anytime from any device. Given that clients expect to be kept updated on case developments as they happen, it's important that lawyers have the anywhere, anytime access to information that the cloud provides. Cloud technology also allows more than one attorney to work on a case at once without impacting security.

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Client Experience

Managing partners are turning to technology to remain competitive and to change how their firms deliver legal services. A majority of respondents (60%) in the 2019 ABA Legal Technology Survey indicated that their firms have a budget for technology and plan to increase this budget.

Practice management software is one of the technologies transforming the way firms deliver client services to improve client experience. This software is helping managing partners eliminate client frustration with issues such as spotty communication, unclear timetables, or unmet expectations. The technology allows lawyers to build successful relationships with clients and colleagues through better collaboration and communication.

A Thomson Reuters blog on embracing legal document automation captured the importance of leveraging technology to enhance client satisfaction. "Clients expect value and expect their lawyers to creatively use tools that generate this. Tools in drafting automation solutions enable accuracy, management of risk, and produce speedy, high-quality outputs. This directly translates to client satisfaction. Firms can free up time for fee earners to engage in added value activities, to build strong client relationships, and to look for new business…"

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Firm Operations

According to an Altman Weil 2019 Law Firms in Transition Survey Law firm leaders agree almost unanimously (96%) that a focus on improved practice efficiency is a permanent trend in the profession.

Practice management technology is helping law firms operate more efficiently by streamlining internal processes and improving workflows. One of the biggest challenges facing law firms that don't use management software is a disordered workflow. Haphazard workflows limit the capabilities of lawyers and stagnate firm growth. Customizable practice management solutions allow firm leaders to tailor workflow functions to suit their needs. This can help managing partners track and manage cases better, reduce intake time and automate and streamline processes.

In evaluating practice management solutions, managing partners should look for the best features for their practice type which could include document management, intake questionnaires, case management, and analytics and automation. It is also important to consider whether or not a cloud-based platform integrates seamlessly with the firm's communication, finance, e-signature, and other tools.

Implementing practice management software that automates processes—like pre-populated tasks, reminders, and deadlines for matters—not only saves attorneys time and money, it also decreases errors. An integrated platform can provide managing partners with a more accurate understanding of firm productivity, helping identify the firm's most efficient intake agents, and providing insight on which attorneys are obtaining the most in fees. The technology also provides visibility on where employees are struggling and which areas of the business need greater attention and training.

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Bottom Line

The efficiency gains and process improvement from integrated practice management platforms can increase a firm's profits by allowing lawyers to spend less time on administrative tasks and more time on bringing in new business.

Jeff Argast is the Chief Technology Officer of Litify: an integrated, intuitive legal platform that streamlines and automates task management, document generation, intake management, and client communications. Built on Salesforce.com, Litify is a secure, extensible platform that provides data-driven insights to help law firms scale and increase their bottom line.