Legal technology is streamlining mundane tasks and raising baseline expectations for modern law firms. Efficiency gains alone can reduce utilization and threaten profitability if top-line revenue does not grow. Competitive dynamics have shifted as technology enables smaller groups to form competing firms, increasing the need for long-term strategic positioning. Law firms must focus on growing revenue through tactics like effective cross-selling, while increasing meaningful client time rather than screen time. There remains significant room for improvement in revenue strategies across many firms even as product innovation continues to advance operational capabilities.
For Litera's CEO Avaneesh Marwaha, however, these types of technology will be table stakes for a modern law firm. Without revenue growth, the efficiency gains could even threaten profitability and utilization rates. Ironically, then, lawyers looking to differentiate themselves in a high-tech era will need to get back to the basics. "The more time lawyers spend with their clients and less in front of a computer screen, I think that's better," he said. "That's just better for society and better for where we want to go."
A partner could leave with a few associates and start a competitor firm with the help of technology, for example. "Those weren't situations that we had a while ago," Marwaha said. "So how are you going to build a firm that is competitive for the long-term and not just the short term?" To remain competitive, particularly as legal work becomes more streamlined, law firms must grow their revenue. The good news is that there's a lot of room for improvement in this area. At most law firms, cross-selling just isn't happening, Marwaha said.
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