Digital transformation in law firms - what's our approach?

Recent tech developments can transform legal services, paving the way for fresh approaches to improve firm efficiency and client experience.

However, with expectations and demand for clarity and transparency higher than ever in this post-pandemic era, how can SME firms best adopt a ‘tech-forward’ approach to improve client engagement and satisfaction?

Our practice manager Sarah Collins, spoke to Legal Practice Management (LPM) to discuss some of the key considerations – from compliance and data security, to the importance of client/ lawyer interaction.

Sarah has been with the firm since its inception over ten years ago. With over 25 years’ experience in business management, she is highly knowledgeable when it comes to supporting SMEs with the development and management of their business processes and strategic plans – including digital transformation.

• What should be the main aim of digital transformation?

Everything we do when it comes to digital transformation is with improvement in mind – to make processes better, smoother and to make life easier – both for our fee earners, as well as our clients.

In an ideal world, you shouldn’t know that you are using technology and everything we do digitally is to achieve that, driving positive change and delivering tangible value – be that in the form of enhanced client experience, to increase operational efficiency or deliver improved agility and adaptability.

There is also the important matter of compliance to consider , and digital transformation has to take this into account to protect data, ensure privacy and deliver systems which are efficient – all whilst meeting regulatory requirements.

• How should SME firms choose the right platforms and processes to deliver distinctive client-centred journeys?

For me, this comes back to the main aim – choosing digital platforms and processes must fulfil a specific need and not be technology for technology’s sake.
SMEs like ourselves are agile, with people on the move working in different locations and, whilst cloud-based solutions seem the obvious choice, this has to be balanced with legal compliance and security.

SMEs should approach digital transformation with a client-centric mindset to ensure systems and processes deliver client-centred journeys.
The challenge for SMEs is identifying the processes that need to be baked into a digital solution. This can be tricky unless you are, for example, a conveyancing firm following a set series of ‘moves’ towards a specific end goal.

For us, the legal problems or opportunities that we deal with are often quite complex and require discussion or the presentation of a variety of potential solutions for our clients to consider, and this can be tricky to address as part of a digital transformation or process improvement. SMEs will, necessarily, have to think about budget and value for money when choosing a digital platform or piece of software. They won’t have the luxury of bespoke solutions that the larger firms can enjoy, and there may need to be an element of acceptance that the ‘off-the-shelf’ solution, whilst not perfect, will still deliver positive change.

The platform has to be scalable too – often SMEs are growing quickly and you need to be able to broaden a digital solution out over time, so it is important to think ahead and try to anticipate what your business might need from a system in five years’ time, because what you started out with, will inevitably require more complex solutions in the future.

Establishing a roadmap for your digital offering which will last the test of time can be a significant challenge, and can result in problems further down the line when, after bolting on various additions to solve an immediate need, you are faced with the challenge of integration of legacy systems with newer technologies.

• How can a tech-forward approach improve client engagement and satisfaction, and a law firm’s competitiveness?

A tech-forward approach is great – if it works. Systems have to be easy to use, intuitive and deliver tangible benefits – be they speeding up processes or providing 24/4 access to documentation clients might want to review.

But your clients have to be on board with it. If it’s seamless, client portals deliver real value, but technological literacy – both with clients and fee earners – can be a challenge. If something doesn’t work for them first time round, this can have a negative impact.

When successful, however, a tech-forward approach can not only improve client engagement and satisfaction but also enhance competitiveness – offering a more efficient, cost-effective, and client-centric service.

It can also help law firms gain a tech-savvy reputation which can help to can attract new clients who value innovation and convenience in their legal services.

• What opportunities are there for firms to optimise or automate workflows that meet their cost-efficiency, security, scalability and agility needs?

There are significant opportunities if you have a straight forward end-to-end process which would suit Robotic Process Automation (RPA), with repetitive, rule-based tasks well-suited to it, like data entry, document processing, and report generation which could increase efficiency.

But I struggle to see how you would automate a process where you need human discussion.

Of course, this depends on the legal service that you are offering and there are great opportunities in some areas like conveyancing, for example, where you are following a set process towards an end goal.

However, workflows vary on a practice-by-practice basis, and some simply are not a natural fit for an automated workflow.

Jurit is about developing relationships with clients and being a trusted adviser, and that doesn’t happen with an automated workflow system. That happens with sitting down, understanding a client’s business, meeting others within that business, and really getting underneath the skin of what their issues or opportunities might be, building rapport and relationships. For Jurit, this doesn’t happen through software, it happens through people.

That is not to say that there aren’t other areas which can benefit from workflow improvements like undertaking a workflow analysis to identify inefficiencies or areas that can be streamlined. Integrated systems and document management also have a role to play, but it is important to choose technology solutions that can scale up or down as required.

Optimising workflows and exploring automation (where it is appropriate) is an ongoing process. SMEs need to recognise this and regularly reassess their processes, adapt to changing business needs, and explore emerging technologies to stay competitive, efficient, and compliant.

• How can they leverage all of this to empower fee earners and free up their time to focus on higher-value activities and impact their engagement levels?

We’ve done this in that we have implemented software which allows our fee earners to log time, keep expense records, onboard clients and maintain client records, and we do as much as we can to empower and support them with the systems and processes that sit behind this.

However, it is important for practice managers to recognise that no fee earner is going to use software that is intuitive to navigate and use.

• What effect does automation have on staff? Benefits/ drawbacks?

Automation can be incredibly effective if there are no problems and it allows us to operate completely virtually, whilst offering clients an efficient and accurate service which is geared up for faster decision making when it is needed.

But as soon as there is a tech issue, or you have technophobes or reactionary people in your business, it can be challenging.

Thankfully, we’re lucky at Jurit, in that we have fee earners who are used to being agile and working with technology. But if you aren’t technologically confident, it can be problematic, and the learning curve can be a struggle.

• What role will AI play in adding an extra layer of efficiency? Pros and cons of this?

In the short term, I think that AI could hamper efficiency in the provision of legal services, until it has become more sophisticated.

For instance, if you’re looking at an AI generated piece of legal advice, it’s not dissimilar to supervising a more junior lawyer, everything still needs to be checked and added to, ensuring that the advice is tailored correctly to the client in question. This raises a question for me in terms of efficiency gains.

Whilst I am a big adopter and supporter of technology, I also believe in the value of human interaction as well.

Our clients want to know that they can ring their lawyer and talk about their issue, and that we are there to provide that reassurance. That is an integral part of the role of a lawyer, just as much as the technical side of the advice we deliver, and I think that’s a really important thing not to lose sight of.

What are the risks involved in digital transformation in terms of privacy, client satisfaction, training, integration, compliance, etc?

In the legal world we’ve got to be compliant, not breach GDPR, and ensure that our data is safe and secure, amongst a myriad of other compliance issues. Unlike other industries, there is a real hierarchy of needs to tick first, before contemplating digital transformation.

That means making sure that our people are trained in cyber security and know their obligations in relation to Anti-Money Laundering. So, there is a lot that comes before the nitty-gritty of digital transformation.

Other key considerations include user experience, skills shortages which require upskilling, employee resistance, potential for integration challenges, particularly with older systems, operational disruptions, data security and compliance and budget.

But the key one for me is the risk of potentially losing some of that human element from the client/lawyer interaction.

• What are the practical challenges that SME firms face in embracing digital transformation, and how can they navigate them?

Licensed software can force you down a ‘one-size-fits-all’ route. However, that’s often not what SMEs are about. They are agile, flexible, responding to individual client needs, so a one-size-fits-all approach won’t necessarily work.

Budgets can also pose a problem for the smaller law firm. This can necessitate an acceptance that you might end up with an off-the-shelf product, so you need to know your budget and accept that you won’t necessarily be able to achieve the perfect solution.

Integration of the system within your existing digital landscape can prove challenging too. Sometimes, slow and steady can win the race when it comes to integration with legacy systems or adding new technologies.

Rushing to implement technology can be bad for SMEs because they need to think forward and really consider whether it will be scalable or if it could adversely affect those personal relationships which are so important from a trusted adviser.

Navigating these challenges requires a strategic approach to digital transformation, so it helps to develop a clear digital strategy which is aligned with business goals, whilst remaining adaptable and open to innovation … always with an eye on cost!