Earlier this year, Georgetown University Law Center and Peer Monitor announced their “2014 Report on the State of the Legal Market,” which conveyed the situation of many law firms in simple economic terms: supply outweighs demand. Just as with widgets and the price of eggs, high supply and low demand means that the cost of legal services—what your clients are willing to pay—is driven down.
How can a small law firm stay profitable as the cost of doing business rises, but the price that you can charge goes down?
Karl Florida, leader of the small law firm business at Thomson Reuters, explains how technology can significantly help in his recent article, How Technology Drives Profitability for Small Law Firms. As he walks through three specific choices that he recommends, it’s easy to see how the shrinking time to serve more clients, the pressure to grow profits, and the troubles around billing all can be alleviated.
The video and article underscore an important trend in legal technology: reaching far beyond legal research and into the everyday management of a matter, both cloud-hosted and locally installed software provide opportunities to streamline legal tasks. And most importantly, legal technologies incorporate the language, norms and even some specific regulations peculiar to legal practice.