Law firms of the future

07
May
2013

Cary Burch

The post-2008 economic downturn and subsequent recession forced many organizations to significantly readjust the way they ran their business - law firms were no exception. Law firms quickly realised that in order to survive and prosper during a new era of cost-cutting and financial scrutiny, they needed to become far more streamlined and productive. This new operating environment has resulted in a much-transformed legal industry that is continuing to evolve.

A number of key trends have been reshaping the legal industry since the downturn and will continue to do so in future, so firms must take heed to stay ahead of the game.  

The power of technology 

In order to succeed, law firms will now have to operate a business model that harnesses the power of technology. The 20th century way of doing business and delivering legal services is over. Firms that are willing to adopt innovative technological tools, and avoid the traditional but antiquated 'silo' approach to their business, will prosper. By relying more on technology to manage their matters effectively, lawyers will be able to focus on core activities that deliver value to clients and profit to the firm. The economic climate has undoubtedly shifted expectations and clients now expect higher levels of productivity, transparency, and service. 

Another key technology trend shaping the future is the surging growth of mobile technology. Firms now have an opportunity to dramatically increase productivity wherever they are in the world. Working on-the-go is now commonplace and the concept of being 'offline' or unreachable is quickly dying out. Law firms must ensure that they take full advantage of the flexibility and improved performance that can be unleashed via enterprise mobile. While the legal industry has much to learn in the area of mobile technology, it has already seen a certain level of technological uptake. This is likely to improve over the coming decades as a younger generation, more familiar with the benefits of mobile devices and the flexibility they offer, become the key decision makers at law firms

The new workforce 

The new workforce is another factor that is reshaping law firms. As noted previously, the new generation relies more heavily on mobile solutions, such as apps and cloud computing, to access the firm's data and interact with clients. The traditional office environment is changing as well - from stately private offices to more informal, flexible collaborative spaces that will encourage information sharing and interactive engagement. 

Social media is also becoming increasingly more vital not only for communication, but also for knowledge gathering. According to a recent report entitled Building Relationships with Global General Counsel, 35% of GCs use blogs to source information about or from law firms, 26% rely on LinkedIn, and 11% seek podcasts and videos. Social media can also serve as marketing and strategic business drivers. Such platforms as Google Plus and Facebook offer law firms new ways to reach clients and create a competitive advantage. 

A business-like approach 

A business-like approach to running law firms is a must. Efficiency, accountability, and collaboration are vital to meeting client expectations and ensuring profitability. To achieve these goals, firms must embrace technology that helps them harness front and back office operations, matter management, and business analytics solutions. It's a buyers' market, and clients are becoming increasingly savvy. They expect firms to be both more productive and attentive to their demands. In response, firms must minimize waste, lower costs, and, experts say, focus on their areas of specialty because clients will relentlessly be looking for the best value and expertise. 

Globalization, collaboration and privacy issues 

It is clear that law firm activity is being reshaped by business economics and many are now embracing globalization. Domestic law firms are expanding across borders, collaborating with foreign counsels, and forming intercontinental mergers. 

As globalization marches on, security of information becomes an ever-great concern as well. Security is also an issue. Clients will increasingly demand 24/7 access to information about their cases, firms will need to set up secure portals and collaborative spaces to facilitate communication and interaction with them. Those working in the legal market have always been sensitive to privacy issues - and for good reason - as a loss of sensitive client information could have devastating ramifications. It has therefore never been more important to ensure that technological innovations are matched by robust security measures.

Conclusion 

Quite simply, the success of law firms will always depend on the development of efficient, flexible, smart and secure ways of working and thinking. Rapid technological innovation has fundamentally changed the playing field, and those exploiting the change most courageously will be the ones who prosper.