Special focus: Matter-centric solutions survey 2006

With the Legal Services Bill 2006-07 now awaiting passage through parliament, law firms stand to face even more competition from 2007 onwards. Investment in the right technology will be key to improving service levels, successfully retaining existing clients and winning new business. Managing Partner conducted an in-depth survey into matter-centric solutions, asking firm for their views and objectives in this pivotal area of practice management.

By Richard Brent

Any business wants to improve its overall efficiency, but those in the legal profession are currently under particular pressure to streamline operations. There are many drivers for this, but any law firm will tell you that its main objective must be to meet, and even exceed, the expectations of its clients. The post-Clementi legal landscape is also expected to see those clients presented with a greater choice of sources for their legal services. Volume legal services from the likes of Tesco, AA and Halifax, as well as an increase in competition more generally, may force some firms to re-examine the way their businesses are run. Speed and consistency of service is key to client satisfaction and investment in the right technology is paramount.

Matter-centric products are one way that managing partners and their firms can meet this need for faster, more inclusive client service, reducing the margin for error and making it easier for the fee-earner to do their job. Matter-centric solutions are a means of storing all information relating to a case in electronic form. In addition to reducing reams of papers and filing, they can keep the lawyer up-to-date on a case’s status, with a comprehensive and integrated picture of the way the work has progressed. Documents and tools are readily available, while future priorities can be set to assist in workload planning. Changes can also be implemented to increase efficiency. In short, all the information crucial to a case can be easily accessed and updated – all located in one place at the fee-earner’s fingertips.

Managing Partner decided to explore the current market for matter-centric solutions, asking a wide range of firms to give their preferences, opinions and views for the future. They were asked to say how satisfied they are with current solution providers and how technology could be improved to make their lives easier. Of the respondents, the majority (56 per cent) were firms with up to 25 partners, while 14 per cent had between 25 and 50 partners. Just over a tenth (11 per cent) fell into either the 51-to-100 or 101-to-150 partner bracket, while nine per cent had over 150 partners. A majority of almost 40 per cent spent between ₤100,000 and ₤500,000 on IT each year, with just over a fifth at the extremes of spending either less than ₤49,000 (23 per cent) or over ₤1,000,000 (21 per cent).

Interestingly, however, only half of firms (49 per cent) have actually implemented a matter-centric solution, although 45 per cent of the remaining firms expected to implement one at some point in the future. A similar 43 per cent were undecided in this area and only 12 per cent definitely didn’t want to make the investment. Positively, however, the majority of firms that had implemented a solution (53 per cent) were very pleased with their investment and only ten per cent thought their products less than satisfactory. More than half (52 per cent) also felt they had seen a return on their investment within six months of implementation.

Almost three-quarters (73 per cent) of all law firms believed matter-centricity could help increase their business efficiency by streamlining workflows. This was the principal perceived advantage. However, more than half (59 per cent) also liked the idea of less literal ‘paperwork’ through more emphasis on the e-environment in a modern law firm. Almost two-thirds (65 per cent) thought matter-centricity helped to enforce cross-firm compliance – a cornerstone of effective risk management. A conclusive three-quarters of firms also agreed it was ‘very important’ for solutions to be seamlessly accessible through Microsoft Office.

But in spite of these clear advantages, respondents also cited some pitfalls in the matter-centric approach. For instance, getting buy-in across the firm was a perceived problem for 55 per cent of firms, while 53 per cent had experienced some problems persuading fee-earners to use systems that improve compliance with regulatory or firm-wide procedures. To address this, many firms said they intended to invest in ongoing training, with some mention of steering groups to increase staff involvement.

The main priorities for law firms, however, are what might be expected of busy businesses with large numbers of clients to keep happy. They want something that is easy to use and tailored to meet their specific needs.