Since the beginning of the economic downturn more than ten years ago, competition among law companies has been very strongly. According to what they discovered, customers looking for legal assistance are looking for the most reliable service at the most affordable price possible. The present state of the economy is making it difficult for law firms and in-house legal departments to live up to the high standards set by their customers.
To be successful as the owner of a legal business, you need to do more than just provide exceptional service to your clients. You also need to devise marketing techniques to raise the profile of your company among customers. There are a large number of law firms and in-house legal departments from which to pick; how can your service be distinguished from the competition?
Because you are in the service industry, you should be prepared to struggle against a variety of challenges as you work to build a reputation in your target market.
Here we are discussing some of the pain points of law firms/Corporate legal departments and their resolution
- Hidden liabilities -
Being human beings, we are not perfect; how can we expect a business to be perfect? There are many issues and headaches to be dealt with by the legal industry, from giving direction to the business in line with its legal obligations, benchmarking their teams with the industry standards, advising board members and much more is not easy to keep up with. So herein your liabilities are considered as your issues within your legal corporation; if it increases ultimately it is affecting the growth of your law firms.
- The volume of unstructured data-
It is common for corporate legal departments and law firms they have to deal with the voracious amount of data throughout the process, which results in unstructured data. As the number of data increases, the sorting, and processing of this information becomes devastating.
According to the information, unstructured data facilitates 90% of the digital industry, which estimates that these files are growing at a rate of 60-70 per cent per year. When the data storage size starts showing in gigabytes and terabytes, it is absolute that there will be huge amounts of redundant, obsolete, and trivial (ROT) data in it.
While dealing with cases of various priorities; it is needed that crucial information is readily available. Information on cases from legal departments and outside service providers needs to be in a single place for anyone to access.
- Beyond practical approach -
Lawyers must put their efforts to make the best out of a case, while they knew resources don’t fetch minds, hard work does. Just sitting in front of the computer and reading vivid things won’t make you a better lawyer or increase the productivity of your firm but litigating relevant information as per the case will do. So you must try to bring a practical approach to your work style.
- Division of corporate worker -
Usually in law firms, due to excessive workload, the intellectual lawyers spend their valuable time more on paralegal tasks, which disturbs the hierarchy of legal departments.
The reason behind this complexity is the lack of resources; law firms don’t want to spend much on hiring a litigator or a paralegal as they are expensive, so they ask their in-house team to perform these tasks, which eventually burden the experienced lawyers as they have to work overtime apart from their core activities.
- Less interaction –
When you have a communication gap within your organization, there are more chances that you avoid small issues that your junior associate may have, and later on, this may lead to big issues.
So the legal department and law firms need to interact with their employees and ask for their review or keep a brainstorming session to adopt new ideas that will eventually help your business to grow..
In light of this, it is essential for the legal department and law firms to maintain open lines of communication with their employees and to regularly organise feedback sessions and brainstorming meetings to implement novel strategies that will contribute to the growth of the business. In addition, law firms must maintain open lines of communication with their clients.
- Understanding the competition -
Usually, the economic and market condition dynamically keeps changing and it mostly impacts the service sector. So lawyers must be aware of the change and competition in the market. They should analyze what customers are demanding, how the other firms are handling so many clients, and why people are preferring the same lawyer or legal department.
You should ask this question yourself and see where are you lacking. In this way, you can improve yourself and survive in the cut-throat competitive market.
- The obsolete way of working-
The main cause behind the de-growth of law firms is the traditional work style. Law firms need to change their work style according to the change in technology.
There are various software available in the market and the most trending nowadays is Cloud-based storage. Every industry stores its valuable data on a cloud with concern for security and an automatic backup created by the cloud. So the lawyers must understand that they need to leave behind their obsolete way of working and opt for the latest technology.
- Lack of time -
No doubt, lawyers and law firms always run short of time as they are preoccupied with workloads such as document and contract review, researching a case, writing a legal document, and much more.
Lawyers spend their valuable time on non-core activities, which is not helping these law firms to improve their productivity. That’s the reason law firm management is crucial and needs experts to manage.
- Adopting new technology-
Technology has brought a revolutionary change in every industry, businesses have little choice rather but to adopt new technology. Technology disruption has a great impact on every sector, it has not only changed the legal services to customers but has changed the ways it works. For example, these legal departments are using software to assemble the relevant document that will be read by Artificial Intelligence (AI).
- Real savings are still unknown –
With huge efficiency in savings; apparently, businesses are adopting the latest technology. Instead of hiring a team in-house to manage a particular task or look over the data stored in paper form, opting for the latest software and legal outsourcing services has not only reduced the cost but is also saving the valuable time of law firms and legal departments. This has become one of the cost-effective solutions in the legal industry.
Pain points at any workplace refer to specific challenges or problems that employees experience. These can be quite diverse, and like physical pain, can range from mild to severe difficulties.
What’s more, pain points determine what types of solutions employees seek. Conducting surveys and other listening research can be used as effective tools to find out the exact pain points and the way to resolve them.