Lawyers at all firms, large and small, wear many hats. Partners are busy and are constantly challenged to find the time to focus on the important tasks of the firm and their practice. It's vital to automate and simplify some daunting tasks. Cue legal technology and the variety of software. Unfortunately, it used to be that small firms couldn't even THINK about these tools. They were either not available to them, or were so far out of their budget they might as well just forget they exist. However, with a shift in the market and the expansion and acceptance of cloud based solutions, many smaller law firms have begun to utilize these legal tech tools.
Big or small, new firm or well-rooted practice, legal professionals have recognized that data is power and are making business intelligence a priority by investing in a business intelligence solution. By collecting information from your time and billing system and other third-party data sources that house important information, your firm can develop data-driven strategies to make better informed decisions. If used properly, business intelligence can reduce costs, increase profit, increase efficiencies, productivity, and enhance overall performance. Large or small firms have all of those as ultimate goals.
What we hear most, is that firms are interested in improving profitability. Three major areas where we know that small law firms can benefit from business intelligence are:
- Firm-wide data
- Individual attorney data
- Client and matter-specific data
When it comes down to it, these are the three areas that law firms are using business intelligence to help segment their time and billing data to provide more accurate estimates and forecasting methodologies. Most importantly firm-wide data and metrics is absolutely necessary. Management needs access to the KPI's that drive the firm's profitability. What metrics should you be tracking? Take a look at this white-paper to see what we suggest!
Do you provide your attorneys with their individual metrics? Probably, but how often? Monthly? Bi-weekly? Does it take away from your finance teams' time compiling those reports? Empower your attorneys and provide them with information that is relevant to their book of business, and easy to use. Sounds efficient, right? Reporting on client and matter specific data makes it simple to see whats profitable and whats not. By selecting a BI tool that has a widget feature it becomes very simple to highlight important metrics on a client site which in turn gives you an incredible competitive advantage. Providing clients with data-driven details on items such as invoice status allows your firm to have better client conversations that lead to more value, and more intelligent billing.
The days where BI was only luxury for large firms are finally behind us. Times are changing and we have seen the small law firm BI industry explode. For the first time, it is possible for small firm to deploy BI to fulfill different needs, analyze their performance, predict their future, and make better decisions.
An article in Forbes shares that 89% of business leaders believe Big Data will revolutionize business operations in the same way the Internet did. With those type of statistics, its no wonder small law firms realize the importance of a legal BI tool!
BigSquare is the leading provider of Business Intelligence for law firms and professional service organizations. We focus exclusively on law firm reporting, law firm BI, law firm profitability and law firm analytics.