How can firms achieve commercial success in the post-pandemic world?
Finding the balance between controlling costs and winning new business has many delicate components, says Darren Gower at Access Legal – though embracing changes wrought by the pandemic may hold the key to future profitability.
Commercial success is the driving force for ambitious law firms – so it’s little surprise that, speaking to some of our clients, many have developed a renewed determination to improve their business practices and strategies in the wake of Covid-19.
There has never been a better time to build on the lessons of the past 18 months and, by using technology to support agile and flexible working patterns, firms can embrace the growing digital economy, control costs and increase their profitability.
But how exactly? Virtual meetings, reduced printing, digitised services and downsizing offices are obvious ways to cut costs – but will they allow your firm to meet clients’ needs? Then there are the hidden costs to consider. How do you know whether your top fee earners are spending too long on routine work, or quietly putting in excessive hours because they haven’t had adequate training?
As well as improving efficiency in the long-term, firms will naturally be looking to bolster their revenue and profits. While commercial and corporate services were hit hard by the pandemic, demand for conveyancing, employment law and private client services provided a much-needed boost. Many firms are now looking to build on these successes, expanding and diversifying their offer and growing their market share.
Whether your goal is growth through M&A, consolidating your market position or moving into under-served markets, commercial success depends on having the right strategy in place, powered by business information, and supported by good operational processes.
One common theme we’ve seen among those law firms that have achieved greater profitability is the better use of legal technology and data. Technology is helping to level the playing field across legal, meaning mid-sized law firms can compete with the larger ones. Geography and the size of firms’ in-house IT capabilities are no longer barriers to growth, because they can operate remotely and use their data strategically.
Technology is also key to improving processes that free up fee-earners to engage in value-added activities – such as legal training and marketing and business development. Though not billable, these activities are essential for winning new business – and making strides in these areas paves the way for new business models, better employee and client experiences and more competitive.
Our latest paper, How can firms achieve commercial success in the post-pandemic world, contains insights from legal professionals, consultants and influencers that touch on these themes. Take a look to see how law firms can achieve cost savings, generate more revenue and unlock the value of their data to improve efficiency, increase profitability and grow in a post-Covid world.
