It’s no secret that time is money, especially for law firms. It’s a constant challenge…
Is it time to consider a legal analytics system for your law firm?
It’s no secret that law firms and those who run them have too much to do! Growing your law firm is, frankly, overwhelming. You lose your time to tasks that don’t grow your firm. You try to pinpoint and fix the processes that waste money, but there’s no easy way to do that. And the stress of trying to do all of this spills over into your personal life.
Adopting a Legal Management System (LMS) like Clio management software starts the ball rolling toward profitability. But unfortunately, even when firms do invest in technology for law firms, they still struggle to track the KPIs that give them the best visibility and control of their time and expenses.
Consider these three ways that supplementing your LMS with legal analytics software can move your firm (and yourself!) from a perpetual state of being overwhelmed to freedom and growth for your firm.
1. Law Firm Analytics Enable Stress-Free KPI Reporting
You already know there’s no way to be profitable without tracking the vast amount of tasks, processes, expenses and revenue that play into ROI. But tracking and understanding those KPIs is no simple task.
Often, it involves tracking data like billable hours in paper systems or in Excel or Google spreadsheets. Then, it’s not uncommon to be forced to manually create reports from data you pull from different systems. Not only is this frustrating, it’s very time-consuming and prone to errors. That means leaving money on the table.
Legal analytics solutions streamline this process by integrating systems and giving you access to the need-to-know details of your firm that can literally make or break profitability. The best analysis software for lawyers takes the overwhelming and unreasonable time expenditure out of this vital process. You gain the freedom to redirect time away from report building to actually optimizing your practice.
2.Legal Software Provides Better Hiring and Employee Utilization
Growing a law firm necessitates difficult decisions about when and how to bring new employees on board. You can’t postpone hiring them until you need them, or you’ll quickly fall behind in new business. But once hired, you need to quickly grow your caseload in order to be able to afford to keep them.
Other challenges law firms face with staffing include the need to:
- Delegate non-billable tasks to lower-paid staff, not attorneys, whenever possible
- Free up lawyers to increase billable hours
- Accurately track your firm’s utilization rate (ratio of billable hours to total hours worked)
- Prevent burn-out and low morale that can result in an unpleasant and unsustainable workplace, which leads to costly employee churn
- Prioritize client communications, which impacts your firm’s realization rate (i.e. how much of invoiced amounts are actually paid)
- Automate manual tasks
- Equip staff with the tools they need to do their work efficiently and without frustration
A legal analytics solution tracks and analyzes everything that impacts profitability. It identifies all your time-wasters, so you know where to focus your attention. It automates invoicing, payment tracking and follow-up on past due accounts. And so much more. Look for a law firm analytics system that has not only out-of-the box reports, but also customizable reports. Above all, it must integrate with your LMS.
Results? You eliminate overwhelming manual data collection and analysis and actually uncover the delicate profitability balance in hiring and managing staff. And you gain the freedom to focus on growing your firm and making it a great place to work.
3.Legal Analytics Let You Focus on Clients
You didn’t go into the legal field to manage administration. You wanted to practice law! But you’re no doubt aware of the very low utilization rate of most attorneys. On average, they report only about one-third of their time (31%) as billable hours (Source), which is estimated to be only 81% of their actual billable hours worked. (Source). One of their most time-consuming and error-prone tasks is, in fact, keeping up with their billable hours. Imagine if that was the easiest part of their job and they could focus on attending to clients’ legal matters, bringing in new business, and having a personal life.
The best way to free attorneys up to focus on clients is to employ a legal analytics solution that integrates with your LMS. Together, these two technologies transform your practice … and your life. Your system doesn’t just automate and simplify attorney tasks. It does the same for client interactions, improving their satisfaction, their potential for referring other clients, and their willingness to pay your invoices without dispute. These benefits increase profitability on the revenue side.
A solution like this lets you focus on what matters, grow your firm without overwhelm, and gain the freedom to live the life you want to live.
Ready for Freedom?
LawKPIs was specifically created to integrate with Clio and other legal management systems to give you back your time and increase your firm’s profitability.
Schedule a demo of LawKPIs today to learn how you can go from OVERWHELM to FREE!