Four reasons why the ‘people factor’ is important in legal technology according to Helm360
In the fast-paced world of legal technology, the focus has often been on harnessing cutting-edge software and automation to streamline processes and reduce costs. However, firms often neglect the so-called “people factor” when implementing new technology or identifying processes for automation. This one mistake can severely impact a firm’s overall return on investment. Recognizing the significance of human involvement is paramount for law firms to achieve efficient operations and meaningful engagement with their clients.
But first: what is the “people” factor?
Humans are not computers, and when assessing legal technology options, it is imperative to understand the “people” factor of technology. While computers are much faster at processing and storing information, not all tasks can be replaced by one. Understanding this means seeing employees as people and supporting their needs, and can ultimately lead to greater success in a firm. This “people” factor contributes to efficient operations because it allows firms to think about:
- How a firm can have a human-first mindset in a world that is about numbers
- How a firm leverages technology to track and measure the success of legal projects and engagement in a meaningful way
There are several benefits to a firm derived from understanding (and implementing) this into their workflows.
1. Maximizing margins through informed decision-making
By incorporating the “people” factor in legal technology, firms gain better insights into managing costs and making strategic resourcing decisions. Technology becomes a conduit for tracking and measuring success, eventually building a valuable database of historical data. This data supports firms in identifying areas for improvement, such as enhancing legal pricing solutions and turning simple analytics into actionable insights.
For instance, financial data analysis might reveal that a significant portion of attorney and staff billable time is dedicated to a few clients, resulting in a low profit margin. If an attorney is spending more than half of their time on one or two clients and a managing partner can correlate this to less than a 30% margin, this is valuable information for a firm. Leadership takes this data and makes decisions about seeking new clients or exploring other solutions to improve profitability. If a firm’s leadership understands how attorneys and staff are spending their time, they can then take informed steps to make client work more efficient and profitable.
2. Automation as an extension of expertise
There are often repetitive tasks that most people may not like doing but are a crucial part of their jobs: such as billing or inputting data. But what if there was a way to automate these tasks and instead focus on client-facing tasks? Embracing technology as an extension of human capabilities allows firms to free up resources and increase productivity. Rather than senior billing team members spending extensive time on routine tasks, they can concentrate on more critical aspects of billing or workflow management. Manual efforts can then be delegated to technology, streamlining processes and driving productivity. Helm360 offers billing support services that are designed to help law firms respond to billing crises quickly. Our product integrates into 3E and allows firms to generate timely bills and keep revenue flowing.
3. Streamlining Transfer of Knowledge
A prevalent problem in law firms is the loss of crucial knowledge when employees leave the company. With a typical 6-9 month ramp-up period for new employees, high turnover can significantly impact a firm’s ability to bill efficiently.
Paperless solutions and automation play a vital role in safeguarding intellectual capital and streamlining the transfer of knowledge between employees who come and go from a firm. By leveraging technology, firms reduce the learning curve for new hires and can facilitate knowledge transfer by keeping information in one specific place. This ensures that key insights and expertise remain accessible, promoting long-term stability and efficiency.
Termi, Helm360’s interactive next-generation AI chatbot, supports a cohesive transfer of knowledge among members of a firm. Termi is a revolutionary chatbot that provides a single, user-friendly launching pad allowing attorneys and staff to interface with the IT systems and databases they use every day – all from a familiar instant messaging-like platform and using plain language. Termi also integrates OpenAI’s LLM so it can understand and respond to even the most complex questions with accuracy and speed.
For example, if you’re a large firm with multiple locations as well as remote employees, ensuring uniform adherence to policies and procedures can be a challenge. There is also the time spent by employees finding the right person to ask or combing through policy manuals and handbooks. By utilizing Termi, an employee can input their question and receive an answer in seconds. This supports the streamlining of knowledge, saving employees ample ramp-up time that would usually occur when starting a new position.
4. Fostering a Conducive Work Environment
Incorporating the “people” factor also means recognizing the importance of employee well-being and satisfaction. People are no longer just looking for a job, but instead an environment that is conducive to their lifestyle. This is particularly true as younger generations join the workforce and bring with them different expectations for their workplace experience. For many Gen Z employees, for example, pay is just one element they consider. Factors such as remote work options, PTO and benefits hold significant sway in job decisions if a potential employee has multiple offers with the same pay.
In the case of remote work, for example, firms that want to attract and keep talented lawyers and staff can use a people-forward approach to determining work arrangements and then leverage technology to support employees. Firms where a significant number of people want to work remotely or in a hybrid way can deploy Termi to ensure everyone has access to the information they need to do their jobs, regardless of where they’re working.
Conclusion
The “people” factor is a critical element in legal technology implementation that cannot be ignored. Emphasizing the human touch as they consider and deploy cutting-edge software empowers law firms to achieve greater efficiency, improved decision-making and heightened employee satisfaction. By focusing on how technology can complement and enhance human capabilities, firms can ensure they are making the right investments and operating as efficiently and profitably as possible.
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