Human skills and expertise are the key elements of legal services. For any law firm, having the best lawyers on board matters the most. While human resources continue to be the caveat, innovation has emerged as a game-changer in the industry. After the pandemic, technology is an integral element of success in the industry as it ensures efficiency, simplicity, and client satisfaction.
Moreover, it helps law firms to stay ahead of the curve. With more than 450,000 law firms in the US market, the competition is stiff for startups. Innovation can give your new firm a winning edge as a beginner. You can put your best foot forward in the dynamic legal environment from the beginning by adopting an innovative strategy.
We will list a few actionable best practices to build an innovative startup law firm.
Adopt Legal Technology
According to Gartner (News - Alert), legal departments will likely increase their technology spending threefold by 2025. Despite being resistant to automation, most firms had to embrace it amid the pandemic. This set the stage for innovation in the industry, and there has been no looking back since then. Setting aside an innovation budget for your startup is a great move to stay on top of this trend.
Consider investing in tech tools such as document automation, case management software, and e-discovery platforms. These applications can streamline workflow processes, enhance efficiency, and reduce costs for your startup. Artificial intelligence (AI) can modernize your startup in several ways, from assisting in legal research to facilitating contract analysis and helping with predictive analytics.
Collaborate With a Technology Partner
For a law firm startup running on a tight budget, hiring an in-house tech team doesn’t make sense. You can look up to your peers to seek a cost-effective solution. Did you know that elite law firms in the country are outsourcing high-value functions? You can take a cue and look for providers offering managed IT for law firms to address your innovation needs on a budget.
TRiiO recommends the managed IT model to law firms seeking cost-effective alternatives to full-time, in-house IT staff. It is the best way to innovate amid the rising costs, tech talent shortage, and skills gaps. Your managed IT partner can handle your day-to-day technology issues and set up your startup for a complete digital transformation. The best part is that they do it without breaking the bank.
Implement Flexible Work Models
A post-pandemic survey by EY found that 9 out of 10 employees within corporate legal departments prioritized flexibility. Moreover, 54% of them stated the intention to quit their current jobs if they were not flexible enough. The mindset continues in 2023 and is likely here to stay, with hybrid work becoming a norm in the US.
Startups can gain several advantages by adopting flexible work. It reduces space requirements, enhances employee satisfaction, and drives retention and loyalty in the long run. You can tap into a global talent pool and build a diverse and dynamic team. Implementing flexibility is easy as you only need to provide employees with collaborative communication tools and proper remote work training.
Prioritize Cybersecurity
Law firm innovation isn’t just about modernizing your workflows and systems. Prioritizing cybersecurity is a part of technology best practices, whether you run a startup or an established firm. According to a 2022 American Bar Association survey, more than a quarter of law firms in the US stated they witnessed a data breach. The number underscores the significance of adopting cyber awareness best practices.
It starts with implementing a robust infrastructure to secure your data and applications. Also, educate your employees on potential cyber threats, how to identify phishing attempts and the importance of secure password practices. Regular cybersecurity training can empower them to be proactive in safeguarding their clients from cyber risks.
Stay Informed About Regulatory Changes
Like any industry, the legal segment has to follow some regulatory guidelines, and these apply to innovation as well. Startup law firms should stay ahead with the latest regulatory developments and compliance requirements in the industry. Also, stick with the basics, such as protecting client data and privacy.
Investing in continuous learning ensures that your team diligently follows the guidelines. You can also utilize legal research platforms, attend industry conferences, and foster relationships with regulatory bodies to understand the changes. Law firms that proactively adapt to changes are winners in a competitive industry.
Summing up, a culture for innovation can give your law firm startup a head start. Besides simplifying workflows and enhancing employee satisfaction, innovation sets you up for delivering to client expectations. You can follow these best practices to implement top legal technologies without spending a fortune. Most importantly, they help you address the risks of innovation.
