As law firms compete in a highly-competitive, fast-paced industry, they’re constantly looking for innovative ways to improve their efficiency. One of the most efficient ways a law firm can get better results is by making data-driven decisions. Using data, law firms can focus on which practices they are best at and identify opportunities to improve.
Take, for instance, a law firm trying to determine whether or not it should move forward with a class action. If they go through the motions of initiating the case while they put together data on the market size, their success rate will increase. Law firms can create and implement more effective plans using data to make decisions. Here are five ways to use data-driven decisions to improve your legal practice.
1. Compiling Best Practices
You’ll need to track down a few key figures to compile data. A firm should have data on a few things, such as profitability and office size. The rate at which the firm recovers clients’ money will also help establish whether or not the lawyers are working properly. If the firm’s recovery rate is up to 99%, they’re working efficiently. Not all firms have the same recovery rate, but they should work on improving this number.
The other data will concern whether or not the firm’s client is happy with its services. This can be measured with a simple customer survey. If there is a dissatisfaction level of 70% or less, the firm needs to increase its efforts to please its clients. With these metrics collected and analyzed, law firms can create best practices for their business model.
2. Analyzing Trends
An analysis of the trends is the next crucial step in determining whether or not your firm’s data-driven decision-making approach is working. You’ll need to determine whether there are any trends within the data, such as a decline in clients’ satisfaction and office size or a decline in billable hours. During this phase, it’s important that you identify the root of each trend and how you can resolve them.
The benefit of this approach is that law firms can effectively determine what they need to improve on and how they can do so. It’s important to note that law firms should not rely solely on data to determine their success rates. You must still have a solid understanding of the business, including empirical and anecdotal evidence. What you need is an all-encompassing system that aggregates information from a variety of sources.
3. Improving Data Agility
Businesses must be able to analyze and act upon data in real-time. You can obtain this data from several sources, such as documents, spreadsheets, or emails. When this is automated using business intelligence software, businesses can then compare it to their historical data. Law firms should have the means to collect data in which they’ll be able to prove it with an audit trail. An audit trail will allow you to trace the source of each transaction and assign responsibility for it.
Additionally, law firms should take steps to make sure the data remains safe. You can ensure that your company’s data remains secure by using encryption to protect it. Data breaches will devastate a firm, so you must take precautions against them.
4. Increasing Data Accessibility
Law firms can also increase their data accessibility by improving how they store information. You can achieve this by eliminating redundancies, reducing costs, and improving responsiveness. Additionally, you must make sure that your records are properly organized. You’ll need an accurate system for identifying and finding documents, emails, and other important pieces of data. For instance, you can get the help of a company who is able to do legal case search which can greatly improve your legal firm. You will want to be able to identify clients, case types, and relevant documents.
Firms should be able to share information throughout the organization in various ways. You can achieve this through a cloud storage system that allows all employees to access the data. The data should be automatically updated and easily accessible to those with the proper permissions.
5. Enhancing Data Availability
You must have the ability to act on the data when it’s time to do so. If a law firm is ever faced with an important business decision requiring data, they need the ability to act immediately. They’ll be able to do this if they can access their data through mobile devices and distributed cloud computing. Law firms will not succeed if they don’t have fast and reliable access to the information that drives their business decisions. They need to be able to access the data through various means, such as laptops, mobile devices, and tablets.
Data-driven decisions are a method that can be implemented in any industry, whether you’re dealing with legal matters or not. This strategy relies on the collection and analysis of metrics to attain the most effective practices. This strategy allows law firms to remain relevant in an increasingly competitive industry.