Even if the 13% of the time allotted for “meeting or speaking with clients” were completely billable — which it likely is not — when combined with the 60% of time spent practicing law, that means lawyers are still spending more than 25 % of their time on work that doesn’t generate income. By streamlining non-billable tasks, lawyers are afforded the time and energy needed to focus on activities that generate more revenue.
The efficiency advantage
At its core, efficiency can benefit a firm on at least four fronts:
Productivity
Firms that are more efficient accomplish more in less time. Imagine how much more your firm could accomplish if you invested in efficiency tools and streamlined internal processes.
Client satisfaction
Happy clients are loyal clients who not only reward law firms with ongoing business but often entrust them with higher-value matters. Improving efficiency means client matters can be resolved quicker, thereby leading to happier and more satisfied clients.
Client referrals
Clients who are satisfied and happy with the results of their legal matters are also much more likely to provide referrals. This can be especially beneficial when higher-end clients refer prospects with similar legal needs.
Business growth
With more profitable work coming in the door and happy clients referring new business, firm growth typically follows. Gaining a reputation as a firm that consistently delivers cost-effective, high-quality work can be the best driver of long-term business growth.
A path forward
It’s a safe bet that firms saddled with inefficiency experience some detrimental impact on the quality of work they provide to clients. While inefficient firms remain content with the status quo, their clients almost certainly don’t. By showing a higher level of responsiveness and competency, firms operating at optimal efficiency can not only maintain their client base but more easily compete with — and often take business from — competing firms that serve higher- value clients.
The efficiency that comes from staying current with the law and being able to get up to speed quickly provides that value and puts the best-prepared firms at the head of the pack when clients are looking for representation. Now is the time to implement an efficiency strategy.
A focus on relationships
Today’s legal clients want much more than a transactional relationship. While cost and efficiency will always be at the top of the list of their concerns, the firms that stand out are those that seek to understand their clients’ business.
Thankfully, the growing number of efficiency tools on the market can help. These technology solutions can free lawyers up to spend more time interacting with clients, learning about their business, and building valuable relationships.
In some cases, making a single strategic investment can pay almost immediate dividends. For example, investing in a document automation solution can dramatically reduce the time it takes to create and review contracts and other legal documents. With the time saved on these labor-intensive tasks, lawyers can focus on other higher-priority and profitable matters.
Firms that invest in and adopt these types of technology solutions can streamline operations and enhance their success.
Don’t fight the clock
By improving the way firms track and complete tasks — especially administrative tasks not associated with the practice of law or case management — they can make great strides toward maximizing productivity and profitability.
Technology can almost completely automate several of the routine tasks that firms currently spend hours managing: time and billing, scheduling, accounting, client communication, and document preparation and assembly, among others.
For example, document drafting technology allows firms to quickly produce, review, edit, share, and update contracts and numerous other legal documents. The payoff? Work that previously took a lawyer hours to research and draft can now be accomplished in mere minutes — helping lawyers be more efficient and effective for the firm.
Some of these solutions are even cloud-based — allowing lawyers to access information from nearly anywhere.
The iron is hot
Law firms have repeatedly indicated that they understand the need for efficiency, but few have taken steps to make it happen. Client demands are not going away, and firms need to step up or risk losing valuable business. It’s time for firms to turn awareness into action.
Clients are fed-up with the sub-par results they receive. Yet, in most cases, firms are content with the status quo. Firms that make efficiency a priority and act decisively are best positioned to come out ahead.
