Two key questions need to be answered as a part of the procurement process for new legal software. They are simply,
- What’s the return on our investment (ROI)?
- Is it enough to warrant updating our system or implementing a new one?
Law firms want to keep up with the needs of their clients and staff, and to maintain a competitive edge. Many see software as a route to doing just that – but currently, with profit margins being squeezed, and practices looking to do more with less, it’s critical to ensure that the software you choose can work for your firm to improve both performance and the balance sheet.
So how do you calculate ROI? In this article we’ll highlight a few elements to consider.
Time is money
Law practices can often get bogged down by time-consuming, administration-heavy tasks that detract from billable work and revenue generation. This is particularly relevant to processes associated with onboarding clients, managing bills, training staff, or drafting, reviewing and sharing legal documents.
These are just a few of the tasks that can take hours out of a lawyer's day. They require significant time and manpower, while taking focus away from client interactions and case work. For example, one study found that 20% of a fee-earner’s time was spent simply finding information and files. That’s one working day a week that could be spent on more valuable activities.
The key is to identify where time could be used more efficiently. By condensing the hours spent on tasks like client onboarding, document management, and form filling, the right legal software has the potential to revolutionise the way your law firm works.
For instance, software can automate client intake, reducing the need for endless paperwork. Similarly, billing software can streamline invoice generation and tracking, minimising errors and delays. By addressing these common inefficiencies, firms can free up time for more strategic activities.
Calculating ROI
To determine whether legal software is worth the investment, you need to calculate its ROI. You can start by examining the time and resources currently spent on various tasks. Consider the monetary value of each task in terms of both time and personnel cost (against your billable hour charges). Then, compare this with the potential time savings offered by modern legal software. The difference represents your potential gain.
For example, compare taking an entire working day each week spent finding casework information. The efficiency of document management software would reduce that time to a matter of minutes. That’s up to seven additional hours every week that could be spent on billable tasks. The total saved will amount to thousands of pounds over the course of a year.
For a practice that averages £200 for a billable hour, that’s equal to £1,400 a week saved, per fee-earner. Or, more strikingly, £65,000 per fee-earner, per year.
Continue to do this for each of the time-intensive processes that could be automated and streamlined. You can see the potential revenue that could be accrued. This then needs to be weighed up against the cost of investment in new software.
Realising the value
This sort of time saving is a reality for many firms in today’s tech-centric legal landscape. The above scenario isn’t just a hypothetical, it’s an example of just one of the many time savings OneAdvanced Legal can provide to your firm.
Imagine being able to provide a quote and onboard a new client in just five minutes. This rapid onboarding process means far less time is spent on administrative tasks and more time is invested in building new client relationships.
Similarly, with just two minutes needed to create and manage a bill, your firm can handle financial tasks with minimal effort, ensuring you stay compliant, and cash flow remains uninterrupted.
Drafting, reviewing, and sharing a legal form typically takes around five minutes using OneAdvanced Legal. If it previously took a fee earner 30 minutes to complete a form, they could now submit 2 documents in that time, along with onboarding three clients and creating and managing two bills.
Additionally, by eliminating the need for host servers and other supporting technology, your firm can further cut down on overhead costs, leading to a leaner, more efficient operation. These time savings and cost reductions can enable your firm to reallocate resources towards client engagement, court appearances, and strategic case development.
If you are interested in a quantifiable illustration of the return on your investment, simply enter a few key numbers into our cost calculator to discover just how quickly OneAdvanced Legal works for you.
By calculating your software's ROI, you can make informed decisions about the impact our legal product portfolio can have on your practice. The benefits are clear—more time for high-value tasks, improved client satisfaction, and a greater sense of achievement for your fee earners.
Is it time for your firm to take the initiative? By prioritising efficiency with the right tools, you can position your practice for success. Explore OneAdvanced Legal today and see how it can transform your working practices. For tailored advice, consider reaching out to our experts who can guide you through the decision-making process.