Today’s Challenges for Law Firms and Professional Services
In the past two years, the world changed forever. The mistake many businesses, particularly law firms, are making is assuming that they will never go back to the way it once was. COVID-19 showed the world the possibility of turning work environments into an online platform. Processes have changed, needs and responsibilities have changed, and new opportunities have opened up in surprisingly new ways. It is only natural, therefore, that our strategies must also change.
It’s a phrase the world is tired of hearing: in this unprecedented time. And yet, that is precisely the time we are living in. If your law firm is not changing from the ground up to rise to these new demands and fill the needs in this new, ever-changing market, it is likely to be left by the wayside.
- After a thorough review of this industry in 2020 and 2021, here are a few key elements we have found law firms struggling within this arena:
- Not investing where it counts
- Difficulty communicating firm skillsets
- Off-balanced time management
- Solving issues with profitability and management
Not investing where it counts
Many firms are struggling, and in response, are closing off their firm instead of continuing to push and grow. A study conducted by Dynamic Law Firms found that firms are stopping their spending in a number of categories, including marketing, management and development, and occupancy. Limiting processes and shrinking your business will only go so far- you can’t grow if you aren’t developing your business. This holds particularly true in the law industry.
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Difficulty communicating firm skillsets
A law consultancy firm noted that the personality traits found in the typical lawyer are highly atypical. The traits that make a lawyer succeed- skepticism, deep autonomy, and abstract reasoning to name a few- also make them struggle to communicate their value. If your firm is struggling to bring in new clients, it’s time to call in someone to help.
Off-Balanced Time Management
In 2021, 77% of small firm lawyers found that they spend far too much time on administrative tasks, and not enough time on cases and actually practicing law. This imbalance leads to massive losses if left unchecked, and will also hinder growth and expansion. One other interesting point from this survey is that though many firms recognize this problem, many have admitted to not taking any real action to solve it.
Solving issues with Profitability and Management
Though times are hard, it is absolutely possible to jumpstart your firm’s profitability and refresh your business management strategies. If the issues stated above are not addressed, the state of the law firm will continue to decline. One of the surest methods to address and solve these issues is to bring in professionals who are equipped with the solutions to precisely these issues.
Advantage of Digital Transformation in Law Firms
Seamless access to information on financials, client and matters
Data dashboards help articulate what resources you need and have for quicker decision-making
Automated workflows reduces manual tasks for a more efficient firm
Let technology-driven processes set your firm apart
Enterprise Performance Management consultants bring you insights into what’s holding back your firm. With a consultancy group, you can pinpoint the issues and get educated advice on solving them. Customized planning that covers topics such as employee and partner compensation planning, billing hours, expense allocations, and fee income planning, to name a few, set your law firm up for a successful future, rather than falling into the pitfalls of so many other law firms do.
At ProLytics Consulting Group, we excel in offering detailed, customized analytics and planning tailored to your firm, backed by years of experience. Let us help you streamline the business management process and help you on your path to long-term success. Contact us today to book your consultation.
To learn more about ProLytics’ Legal Performance Planning, get in touch with our consultants and discover the right solution for your business. For more details on deciding what processes to put in place, learn more about our Legal industry offerings here.
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About ProLytics
ProLytics Consulting Group is a business and technology consulting firm specializing in the areas of Enterprise Performance Management and Financial Business Intelligence Analytics. Our team brings decades of successful implementation experience across industries and verticals. We understand and value that each company is unique. We are committed to working closely with customers to find and deliver value-added technology solutions that solve their one-of-a-kind challenges.
