An excerpt from the report Improving Client Engagement to Safeguard Profitability, Part 6: Improving Client Engagement to Safeguard Profitability  

Alongside the investment in pricing expertise, firms have evolved their use of technology in recent years to improve pricing management. Almost two thirds (62%) of NA and 54% of UK firms have progressed to using pricing technology to determine the pricing of a matter on occasion. 63% of NA and 53% of UK firms are using budgeting tools to help with financial planning and forecasting.  

This is a positive step. Given this investment, firms can now share this financial data with partners and associates.  However, firms must work hard in avoiding the trap of not sharing or ‘guarding’ this data. As shown elsewhere in our results, visibility and transparency are key divers in improving the profitability of a matter, clients, and ultimately the business.  

Cloud Commitments

Firms are certainly looking to build on the existing foundation with additional investments in technology over the next 24 months. 70% of NA and 67% of UK firms plan to invest in a budgeting tool to help with financial planning and forecasting, while 72% of NA and 66% of UK firms plan to invest in legal pricing technology.  

Notably, an increasing proportion of this investment is directed towards cloud-based solutions, indicating the need to provide flexible, agile technologies that can support staff working from any location. 38% of NA and 35% of UK firms are planning to move to a pricing solution in the cloud over the next 12 to 24 months, while 36% of NA and 36% of UK are considering a cloud-based budgeting tool over that time span.  

The shift towards flexible working, as well as the agility provided by alternative resourcing is creating a stronger need for anytime, anywhere access to information, making cloud investments a key component of law firm plans.  

Finally, the investments in pricing teams and supporting technology, although essential, should be coupled with process changes that encourage (perhaps require) their use. The combination of process improvements, investment in technology and people give law firms the best chance at reducing their leakage and improving profitability. Moreover, it will allow firms to provide the level of collaboration and transparency clients are looking for, which will produce strong long-lasting business relationships. 

This was an excerpt from the report Improving Client Engagement to Safeguard Profitability . Access the full report to dive deeper into the findings from over 800 legal Finance professionals: