Investing in tech?
Don’t delay, think about your requirements and ask lots of questions
Sean Hargrave, former Innovation Editor of The Sunday Times, shares practical insights about how small and medium-sized businesses can harness technology
Most firms know they must invest in tech to compete and, the good news is, even those with little IT expertise can be helped to find the right solution by asking vendors for as much information as possible.
Technology holds the promise of digitally transforming the legal industry by taking out the paperwork and streamlining operations. This means clients should get a more responsive, joined-up service from firms who are working more efficiently.
However, despite the allure of empowering solicitors to spend more time on clients and less on paperwork – or battling with ‘clunky’ legacy software packages – investment in modern legal tech is surprisingly low. Research published earlier this year found just under one in three solicitors use basic lawtech, such as a contract review system or legal database. A further one in three (35%) revealed they do not use lawtech at all or, if they do, only infrequently.
Part of the reason could be down to partners not wanting to sacrifice a large portion of annual profits to fund new investment. They may feel they already have some IT in place or could possibly feel past packages did not deliver all they were supposed to. However, firms that do not realise the market has now moved on to provide solutions for businesses, both with or without their own IT teams, are being warned they must stay up to date. According to Kevan Mahoney, Business Portfolio Manager at Walker Morris, those without the latest tech are operating on borrowed time. ‘Those who do not make tech investments will be left behind and find it increasingly difficult to be competitive on cost and to attract and retain good staff,’ he says.
‘That’s because clients expect us to be leveraging technology to deliver a better and more cost-effective service. Lawyers expect to be using the latest tech and for it to free up their time to concentrate on high-value tasks. Joined-up systems make life so much easier by allowing you to combine information to give a 360 degrees view of a matter or a client’s entire portfolio, allowing both them and us to make more informed and timely decisions.’
'Those who do not make tech investments will be left behind and find it increasingly difficult to be competitive on cost'
Working in a joined-up manner
Any firms who have yet to investigate the latest technology that allows solicitors to work in this ‘joined-up’ manner will need to have detailed discussions with staff members who will use new software. To do this, and to have an informed conversation with vendors, firms will need to recognise and understand some general trends concerning modern IT.
Cloud systems are increasingly common in all industries. The term simply means that, unlike in the days when an on-premises solution was the only option, companies can now have a third-party host, protecting and updating their legal tech platform remotely. It takes much of the burden of running a system away from a law firm. Some may still prefer the control of having their software in a server room ‘on premise’ in their own offices, but there is at least now an option to effectively outsource this requirement.
An additional benefit of opting for cloud solutions is tech packages will typically be available as platform as a solution (PaaS) or software as a service (SaaS). As the name suggests, this allows a company to buy a managed, hosted service for which they will be billed depending on how many users they want to provide access for. Rather than have software systems that need updating in a server room, a SaaS approach will make sure the latest version of a package is always available to solicitors wherever they are in the world.
If there is one acronym to remember, though, it is application programming interface (API). This allows different programs to be integrated seamlessly. For example, a solicitor working on a contract can call up details of a previous agreement, draft a new document, and request signatures. They can then allot their hours and raise a bill on different systems which seamlessly ‘talk’ to one another.
Data protection
Security is obviously a huge issue for law firms and so any buyer needs to check they are buying services that are protected as much as possible. Vendors need to make it clear how data is kept safe from hackers and an internationally recognised standard to look out for here is ISO 27001. Many firms will also want to know that software can be set up to require two-factor authentication. Rather like logging on to some banks, or making a large purchase online, this is the process through which solicitors will not only need to log on with their credentials but also receive and then enter a code, typically sent to that user’s registered mobile phone number.
'If there is one acronym to remember, though, it is application programming interface (API)'
Firms know they must invest in the latest tech to compete and, the good news is, even those with little IT expertise can be helped to find the right solution by asking vendors for as much information as possible
Sean Hargrave is the former Innovation Editor of The Sunday Times who writes about technology and small to medium-sized business issues
Technology holds the promise of digitally transforming the legal industry by taking out the paperwork and streamlining operations. This means clients should get a more responsive, joined-up service from firms who are working more efficiently.
However, despite the allure of empowering solicitors to spend more time on clients and less on paperwork – or battling with ‘clunky’ legacy software packages – investment in modern legal tech is surprisingly low. Research published earlier this year found just under one in three solicitors use basic lawtech, such as a contract review system or legal database. A further one in three (35%) revealed they do not use lawtech at all or, if they do, only infrequently.
'Those who do not make tech investments will be left behind and find it increasingly difficult to be competitive on cost'
Part of the reason could be down to partners not wanting to sacrifice a large portion of annual profits to fund new investment. They may feel they already have some IT in place or could possibly feel past packages did not deliver all they were supposed to. However, firms that do not realise the market has now moved on to provide solutions for businesses, both with or without their own IT teams, are being warned they must stay up to date. According to Kevan Mahoney, Business Portfolio Manager at Walker Morris, those without the latest tech are operating on borrowed time. ‘Those who do not make tech investments will be left behind and find it increasingly difficult to be competitive on cost and to attract and retain good staff,’ he says.
‘That’s because clients expect us to be leveraging technology to deliver a better and more cost-effective service. Lawyers expect to be using the latest tech and for it to free up their time to concentrate on high-value tasks. Joined-up systems make life so much easier by allowing you to combine information to give a 360 degrees view of a matter or a client’s entire portfolio, allowing both them and us to make more informed and timely decisions.’
Working in a joined-up manner
Any firms who have yet to investigate the latest technology that allows solicitors to work in this ‘joined-up’ manner will need to have detailed discussions with staff members who will use new software. To do this, and to have an informed conversation with vendors, firms will need to recognise and understand some general trends concerning modern IT.
Cloud systems are increasingly common in all industries. The term simply means that, unlike in the days when an on-premises solution was the only option, companies can now have a third-party host, protecting and updating their legal tech platform remotely. It takes much of the burden of running a system away from a law firm. Some may still prefer the control of having their software in a server room ‘on premise’ in their own offices, but there is at least now an option to effectively outsource this requirement.
'If there is one acronym to remember, though, it is application programming interface (API)'
An additional benefit of opting for cloud solutions is tech packages will typically be available as platform as a solution (PaaS) or software as a service (SaaS). As the name suggests, this allows a company to buy a managed, hosted service for which they will be billed depending on how many users they want to provide access for. Rather than have software systems that need updating in a server room, a SaaS approach will make sure the latest version of a package is always available to solicitors wherever they are in the world.
If there is one acronym to remember, though, it is application programming interface (API). This allows different programs to be integrated seamlessly. For example, a solicitor working on a contract can call up details of a previous agreement, draft a new document, and request signatures. They can then allot their hours and raise a bill on different systems which seamlessly ‘talk’ to one another.
Data protection
Security is obviously a huge issue for law firms and so any buyer needs to check they are buying services that are protected as much as possible. Vendors need to make it clear how data is kept safe from hackers and an internationally recognised standard to look out for here is ISO 27001. Many firms will also want to know that software can be set up to require two-factor authentication. Rather like logging on to some banks, or making a large purchase online, this is the process through which solicitors will not only need to log on with their credentials but also receive and then enter a code, typically sent to that user’s registered mobile phone number.
Acting on first signs you need better tools
Toby Harper, Founder and CEO at Harper James, has been through the process of evaluating available packages, which he has combined through the use of APIs, to empower his remote teams to work efficiently. While he has now gone to the extent of building his own bespoke system, he encourages firms to start small and build up. Most will not have a team of IT professionals to call on but there are cloud-based, SaaS and PaaS systems out there which can be set up, typically by a vendor, and then operated with minimal in-house skills. For him, once a company realises it needs to act, there really is no excuse for carrying on as things are just because that is how they have always been done.
‘One of the big signs a company knows it needs to act is it takes weeks to meet a client and physically check their ID. When you have the right tool, you can do this in a couple of minutes remotely,’ he says. ‘That was a big driver for us because we might take on more than 100 or 150 clients a month and it’s unworkable otherwise.’*
He also reveals his own experiences and conversations with fellow professionals. These show that too many are grappling with legacy systems meaning, even when software is used, different programs need to be open. If solicitors need to log on to several systems to work, firms should be investigating more up-to-date options.
‘A good place to start is a single source of truth, a database that all records are held on so everyone is working from the latest details,’ he says. ‘You also need a practice management system at the heart of the business through which client work is carried out, recorded and billed for.’
This does not need to be overly complicated. Harper opted for Microsoft Azure for a central database and then plugged in Office 365, which includes programs such as Word and Excel. He integrated these, and other systems, such as a remote ID verification tool, into a practice management system, which he has since replaced with his own bespoke software. It is worth noting that many firms will find no need to replace off-the-shelf software.
In-house efficiencies
For in-house lawyers, the pressure to work more efficiently can be felt even more keenly than in law firms. According to Electra Japonas, Founder of tech consultancy business, TLB Law, in-house professionals are generally viewed as a cost centre, rather than a fee-generating division, and so are expected to do more for less. They are also likely to be working for a business that has, or is in the process of embracing, digital transformation. As such, paper time sheets and documents in boxes would never be tolerated.
'For in-house lawyers, the pressure to work more efficiently can be felt even more keenly than in law firms'
Japonas reveals the different nature of in-house work means the key piece of technology they need to get right is a contract lifecycle management tool, as well as software that keeps all their expenses and payments in one place.
‘In-house lawyers need to know where the company’s contracts are, when they run out and which jurisdiction they fall under,’ she says. ‘A common reason for getting it wrong is they get talked into buying something with way more features than they need, which is difficult to install and implement. That is why they need to be very clear on what they need and ensure that whoever they go with can integrate it with the enterprise system they have in their business.’
Software that keeps payments to a range of external lawyers in one place is also essential for in-house solicitors to demonstrate to the wider business they are keeping an eye on costs. A key consideration, Japonas advises, is how easily a new system can upload and accurately categorise a company’s existing contracts information, be that from a database or through scanning paper documents.
The top questions to ask
For legal firms, the biggest consideration is likely to be finding the best practice management system for their business. Oliver Tromp, Treasurer at the Legal Software Suppliers Association (LSSA) and Regional Director of a well-known practice management system vendor, suggests there are some simple steps to seriously improving a firm’s chances of getting it right. The most obvious is to scope what is needed and to then compile a list of features that must be included in the package and those which the firm is willing to sacrifice. However, detailed questions then need to be asked to make sure there are no nasty surprises further down the line.
‘Most companies will be buying a practice management tool and the crucial thing to ask is: how well can it integrate with other tools?’ he says. ‘Additional questions should focus on where data is being stored and can data from a previous system be uploaded to the new tool easily. Enquiring about the level of support on offer is also critical. Solicitors need to know they can call a human if something goes wrong and not end up typing in a request to a chatbot.’
As with any relationship, one of the most crucial questions which people forget to ask is: what comes next and what happens if we need to part company? Firms need to make sure they own their data and ask for it to be transferred back to them, or another tool, if they subsequently end the relationship. There may be a cost involved, but firms must make sure beforehand the charges are reasonable, rather than punitive.
Tromp’s advice is also to make sure a vendor can set up the system for a firm and also provide training to ensure it can be used from day one. Then, looking towards the future, it is always worthwhile asking a vendor what their road map is. It should include plans that will offer new, improved services, possibly through artificial intelligence. If there seems to be a lack of innovation at the vendor, it is a major warning sign a buyer should be looking elsewhere.
'For in-house lawyers, the pressure to work more efficiently can be felt even more keenly than in law firms'
'Solicitors need to know they can call a human if something goes wrong and not end up typing in a request to a chatbot'
In-house efficiencies
For in-house lawyers, the pressure to work more efficiently can be felt even more keenly than in law firms. According to Electra Japonas, Founder of tech consultancy business, TLB Law, in-house professionals are generally viewed as a cost centre, rather than a fee-generating division, and so are expected to do more for less. They are also likely to be working for a business that has, or is in the process of embracing, digital transformation. As such, paper time sheets and documents in boxes would never be tolerated.
Japonas reveals the different nature of in-house work means the key piece of technology they need to get right is a contract lifecycle management tool, as well as software that keeps all their expenses and payments in one place.
‘In-house lawyers need to know where the company’s contracts are, when they run out and which jurisdiction they fall under,’ she says. ‘A common reason for getting it wrong is they get talked into buying something with way more features than they need, which is difficult to install and implement. That is why they need to be very clear on what they need and ensure that whoever they go with can integrate it with the enterprise system they have in their business.’
Software that keeps payments to a range of external lawyers in one place is also essential for in-house solicitors to demonstrate to the wider business they are keeping an eye on costs. A key consideration, Japonas advises, is how easily a new system can upload and accurately categorise a company’s existing contracts information, be that from a database or through scanning paper documents.
The top questions to ask
For legal firms, the biggest consideration is likely to be finding the best practice management system for their business. Oliver Tromp, Treasurer at the Legal Software Suppliers Association (LSSA) and Regional Director of a well-known practice management system vendor, suggests there are some simple steps to seriously improving a firm’s chances of getting it right. The most obvious is to scope what is needed and to then compile a list of features that must be included in the package and those which the firm is willing to sacrifice. However, detailed questions then need to be asked to make sure there are no nasty surprises further down the line.
‘Most companies will be buying a practice management tool and the crucial thing to ask is: how well can it integrate with other tools?’ he says. ‘Additional questions should focus on where data is being stored and can data from a previous system be uploaded to the new tool easily. Enquiring about the level of support on offer is also critical. Solicitors need to know they can call a human if something goes wrong and not end up typing in a request to a chatbot.’
As with any relationship, one of the most crucial questions which people forget to ask is: what comes next and what happens if we need to part company? Firms need to make sure they own their data and ask for it to be transferred back to them, or another tool, if they subsequently end the relationship. There may be a cost involved, but firms must make sure beforehand the charges are reasonable, rather than punitive.
Tromp’s advice is also to make sure a vendor can set up the system for a firm and also provide training to ensure it can be used from day one. Then, looking towards the future, it is always worthwhile asking a vendor what their road map is. It should include plans that will offer new, improved services, possibly through artificial intelligence. If there seems to be a lack of innovation at the vendor, it is a major warning sign a buyer should be looking elsewhere.
Eight top tips when shopping for new tech
- Talk to your staff about what they will need from any new software.
- Ask the vendor to explain how data on their tech is kept safe from hackers.
- Ask yourself: will the software you are buying integrate well with your existing tech?
- Consider what support the vendor can offer if things go wrong.
- If shopping for a practice management system, make a list of essentials and a list of what you are willing to sacrifice.
- Ask: who owns or has responsibility for the data used in the tech – you or the vendor?
- What will happen if you and the vendor part ways? Consider any transfer of data and costs involved in cancelling a contract.
- Take part in industry discussion to see what other law firms are doing.
Industry protection and collaboration
A further piece of advice from LSSA’s CEO, Kevin Horlock: while nearly all vendors will do their best to act honourably, it pays to have a third-party agreement in place. ‘It can be really reassuring to see which local body the vendor is a member of, and then to check the code of conduct,’ he says.
‘It’s very rare that it would ever need to be used in a dispute, but if you do business with a vendor that has signed up to their trade body’s set of rules on how to treat customers fairly, it can be very reassuring to know you have back up in the very rare instances when something might not go right.’
In a similar vein, the UK Legal Technology Association is an organisation for vendors and customers alike. Solicitors can join in events and seminars to swap experiences so each person feels better placed to make informed decisions. The group also provides certification to solicitors who regularly attend or log on to events and meetings. This means they can demonstrate their commitment to helping their firms understand the options on offer and the shared experiences of peers.
Taking part in industry discussion is a good idea and should help firms understand how investing in technology can help them succeed. Consumers' expectations of excellent and swift delivery of legal services means that, increasingly, firms will need to embrace digitally transformed services – making sure their back-end digital processes work seamlessly with front-end delivery. Now that off-the-shelf systems can be set up and operated for firms, there is no better time to get up to speed. Those who do not invest run the risk of being left behind in an industry marching ever onwards towards digital transformation.