Although your law firm manager may not be yelling over the internal comm-system, “Time is money, people!” certainly, he or she is thinking it.
So why, exactly, does time equal money?
In purely financial terms, there exists a time value of money. Money earns interest over time. So, the value of money actually changes—for example, if invested, $100, in one year, could turn into $105 future value at 5 percent interest.
In addition, if a finite amount of money is spent to accomplish a certain task, the money is spent in place of a second, possible, alternative task. Would you rather spend $15 per hour for a paralegal to locate a physical document in the law library over 10 hours? Or, would it be more efficient and cost-effective to purchase e-document software at $150 that locates important paperwork in under 5 minutes?
These are all questions with which financial consultants and law firm administrators struggle everyday.
And, in the 21st Century, questions about the time value of money generally surround a tradeoff: investments in technology or in manpower.
“When you’re efficient, you take on less risk – Simply put, the less time you spend on a contingency case, the less risk associated with taking it on. If you lose, you’re not sacrificing as much time or revenue. If you win, you’ll make the same amount of money, but since you spent less time on the case, your margins are higher. And, if you win or lose but don’t get paid, you’re out less money.
When you’re efficient, you can take on more cases – If you can generate a Will twice as fast as your competitor, you can do twice the amount of work, right? When your process for settling civil disputes speeds up, you can twice as many disputes. In essence, the more time savings you experience, the more availability you have to generate revenue, and the more revenue you can generate.
When you’re efficient, you can spend more time on client-facing activities – I get it, just because you have more time in your day doesn’t mean you’ll necessarily have clients running to your door asking for your services. But it does mean that you can do more indirect revenue-generating activities. Spend your new-found time meeting people, creating stronger relationships with your clients, and building value in your firm. Try to drive in new opportunities from your current client base (maybe they didn’t know you take on divorces). Did you know that once you have a client, each subsequent sale has a close ratio of over 70%? It’s easy money!”
To read the entire article, go here.
So, are you sold on technology, but unsure where to start? Think about integrating the following products into your business systems:
Apps for smartphones and the iPad have contributed some of the most significant improvements in efficiency and productivity within law firms recently. Get with your IT Department to brainstorm how best to implement this tool into your everyday legal activity.
Read about some of the most valuable legal iPad apps here.
Near-Field Communications (NFC) Technology.
From Google Wallet to Starbucks Mobile Payment App, NFC technology has myriad uses in law and billing arrangements.
Make sure your firm is paid on-time by reading about applications for NFC technology here.
Social Media and Blogging.
Social media sites like LinkedIn or legal recruitment web-agenices, including lawcrossing.com, are cheap and easy ways to locate qualified candidates. It saves recruiters time and money by already compiling information about prospective employees.
Even if your firm is not looking to hire, it’s certainly still looking to recruit clients. At which point, social media—blog posts, tweets, or Facebook feeds—become crucial in advertising what services your firm offers, who its lawyers are, and why a client should hire you, as opposed to another firm.
In the time it took you to read this line, I sent a tweet, then 500 people read it. Talk about a brand new, instant value for time in money.
Today, most law firms already use some sort of electronic discovery software. However, when did your firm last update it?
The capabilities of software and technology change rapidly each day. Thus, if you can’t remember the last time your firm updated its online systems, chances are there exists a more efficient way to organize and file e-discovery documents.
In sum, time, money, and technology are inextricably linked. So, consider putting together a “technology team” at your law firm—to keep apprised of developments in the field of legal gadgetry—one that will ensure your associates are not falling behind or sinking your bottom line.