Utilizing data in the legal world is a relatively new concept that is gaining momentum across the industry. When talking to various law firms about their data needs, there are some who have a clear data strategy and recognize the importance of leveraging data to achieve their key objectives. On the other hand, there are some who haven’t quite caught the vision. Below are the top five excuses preventing law firms from utilizing their data.
“We are lawyers, not businesspeople”
The practice of law and operating a business are not mutually exclusive. Law firms are essentially businesses delivering legal services. If your business is ignoring data, you’re falling behind the curve. The amount of data that is generated both internally and externally is growing exponentially every single year. This includes small and medium sized firms. So, while you may not feel like data and practicing law are related, the data you currently have can be one of your most important business assets.
“Data has nothing to do with delivering legal services”
While it may be true that your main purpose is to provide legal services, understanding your clients can help you improve the services you are providing. How do you better understand your clients? Through data. Relevant data can include things like financial numbers, your online presence, attorney productivity, and customer satisfaction. Online reviews are becoming more and more essential for professional services, including law. Understanding and harnessing the feedback your clients are giving you through online reviews and social media can help you better understand areas to improve and grow your business.
“We don’t know where to start”
This is a common problem not only for law firms, but most companies. They have all this data but just don’t know what to do with it. If you are in this position, it can feel overwhelming. Taking small steps to understand what types of data you are capturing and where it is stored can go a long way. Identifying your firm’s strategic goals, understanding the available data, and utilizing key performance indicators (KPIs) will help you stay on course to achieve your goals.
“There is too much data to sort through”
As you begin your data journey, it is important to know the direction your firm is headed. What are your firm’s goals? What do you want to achieve? Identifying these goals will help you better understand what data you need to collect, and what data is noise. KPIs can help you stay on track to meet your intermediate goals and eventually your primary objectives. As you start out it is important to focus on progress and not perfection.
“It’s too expensive”
For many, when they hear the term “data analytics” they immediately see dollar signs. They cannot justify the capital investment in implementing an analytics solution for their firm. This is a fair criticism, because there are some products and services that can cost you a lot of money. But here’s a secret: data analytics doesn’t need to be expensive. Chances are you already have access to some tools that will help you track key metrics whether in your firm’s legal practice management software or your firm’s financial software. This could be a good starting point to see the available reports and metrics offered meet your needs. However, for more complicated issues, you may want to consider someone with the data skill set necessary for your firm’s needs. There are multiple third-party companies that can help you organize your data and visualize it in user friendly dashboards and still not break the bank.
Become a Data-Driven Law Firm
Whether you’re a brand-new solo attorney or working in an already well-established law firm, it’s never too late to harness the power of data. Don’t let these common excuses deter you from gaining the advantage of turning your law practice into a data-driven practice.
We at KeyMetrix can help your law firm turn data into information, and information into valuable insights. Reach out to us at ContactUs@keymetrix.com so we can help you begin your journey into becoming a data-driven law firm.