LexisNexis has hit the nail on the head in a survey out this week called ‘Is your Tech Smart’, which reveals that the majority of UK mid-sized law firms managers do not and/or cannot monitor the ROI for investments in technology.
The survey, conducted among 90 mid-sized law firm leaders, found that 74% of respondents don’t monitor ROI. This is despite the fact that 87% said that technology contributes to profit growth to ‘some extent’.
The report from Lexis says: “This means decision makers may have little idea of what to expect from the technology in which they have invested, or how it should be implemented most effectively. As with any business, failure to measure ROI will severely hamper law firms from validating and formulating technology investment strategies, and can impede professionals from implementing new systems effectively ”
Strikingly, over one third of those surveyed admitted they did not know how much has been invested in technology by their firm, despite the fact that they were decision makers in relation to tech spend. However, according to the survey, 64% have upped their technology investment since 2015, and 66% expect further rises over the next three years.
“In the wake of these challenges, there is a real risk that many mid-size level law firms could end up lagging behind their competitors and fail to institute new technology effectively. Despite 64% of those surveyed believing that investment in technology has “grown”, only 24% of mid-level firms have increased their tech investment by 6-10% over the past three years,” the report suggests.
While 65% of big law firms are prioritising investment in future-gazing AI solutions, many mid-sized law firms are still introducing basic practice systems.
The report also highlights the gap between knowledge and expectation: 76% of respondents expect technology to help them recruit talented people, mitigate the impact of Brexit and win new business.
Nigel Rea, Director of Solutions at LexisNexis, said: “There is serious appetite for tech investment – but unless mid-sized law firms work to overcome internal barriers to adoption, they are going to struggle to deliver the full value of this. Understanding ROI on historic spend can help make a compelling case for further investment and ensure it is channelled in the right direction. When tech is introduced ineffectively, there is a danger of confirming fears about its worth among sceptics, creating a vicious circle.”
For the other survey findings and to read the report in full click here:www.lexisnexis.co.uk/research-and-reports/is-your-tech-smart.html