Tech-Savvy Firms More Profitable: Now There’s Proof!
A recent report by Wolters Kluwer Legal & Regulatory proves something I’ve suspected for a long time: Tech-savvy firms are more profitable.
Also, lack of technology skills is one of the major reasons that firms fall behind.
Here are some of my favorite tidbits from the 2019 Future Ready Lawyer report:
Technology Leading firms (law and business services) report being more profitable.
There’s no question that the global future of law is under way and that technology and the acceleration of technology offerings are key forces for change.
As we enter the next-generation legal industry, some players already have a head start on the future, while others will need to catch up quickly to ensure continued relevance and resilience.
Across both Europe and the U.S., lawyers in law firms and legal departments agree that the two greatest areas of change in how firms and law departments deliver service will be related to greater use of technology and greater specialization.
And my favorite:
Legal professionals report that a “Lack of Technology Knowledge, Understanding or Skills” comprises the top category of reasons for resisting new technology (36%).
I mean, DUH, right? How can you possibly take advantage of the many innovative technologies impacting the legal industry today if you don’t also invest in learning that enables your people to use those tools properly?
This lack of understanding and skills goes right to the heart of the problem that I see in many of the small- to mid-size firms that Savvy Training & Consulting serves today. Even if firm managers were excited to invest in new technologies, when they don’t invest in equally robust training on those tools, they might as well be giving their teams empty boxes to play with.
Along the same vein, the survey reports that 69% of lawyers believe “understanding of legal technology is of highest value” but only 29% of those say they are prepared to achieve that understanding!
“While lawyers overwhelmingly understand the benefits of technology…, they also recognize there is resistance to adopting new technologies. Reasons for resistance relating to Lack of Technology Knowledge, Understanding or Skills comprise the largest category (36%), followed by Organizational issues (34%) such as cultural, lack of strategy and leadership and change management issues. Financial issues (30%) including cost and ROI were third.”
Lawyers WANT to take advantage of emerging technologies but they don’t know how!
The only thing that can bridge the gap between this desire to use technology and actually using it proficiently is TRAINING.
I read the report and wondered what issues actually fell under the category of “Lack of Technology Knowledge, Understanding or Skills” and found that these areas fall beneath that umbrella:
Lack of IT staff/skills
Lack of knowledge about particular technology benefits
Lack of understanding of what’s available
Training and learning curve
Lack awareness of the competitive need to adopt new technology
Two of the five reasons that firms report an inability to embrace technology could be solved with training.
If your firm understands that it needs to invest in innovative technologies but can’t figure out the path to using those tools efficiently for bottom-line results, contact me today. We have helped firms not only implement technology training, but even create cultures that embrace learning for long-term profit gain.