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Q. What is a well-managed practice, exactly?
A. One that runs smoothly, which means you are on top of all aspects of the practice at any given moment. While we will refer to lawyers here, the concepts really apply to any professional services firm.
If your office runs on practice management software, you will be up to speed simply by clicking on various fields in your database. This is especially important if you need to share information with other attorneys and staff. For example, you can see at a glance:
· details of a case and number of hours logged in to date
· time and expenses incurred
· updated court dockets
· new client data
· how your office calendar syncs with your court docket
· how much money came in this week/amount
outstanding/ overdue clients
Key components of practice management software
Practice management software programs have existed for about 20 years. Typically, they include a calendar function, document management, contact list and other information that enables you to:
* track billable time
* simplify scheduling
* access shared files
* maintain and share an updated contact list
* find and retrieve information about contacts and matters
* identify potential client conflicts
Despite these seemingly critical functions and two decades of advances, it may seem odd that 50% to 70% of law firms do not use practice management software. That's according to surveys by Jack Newton, president of Themis Solutions. He cites cost concerns as the predominant reason. However, lawyers who do not install a practice management system are overlooking one important fact: the right software can increase your productivity as much as 40% over performing tasks manually.
Centralization: 5 key advantages
1. As an attorney, you must manage reams of information. With practice management software, you can link clients with matters and documents with clients or matters. This enables you to track the progress of a case across several files, and see remaining tasks on a to do list, along with pending due dates and meetings. When a clients calls, everything relevant to their case is available through the client interface, rather than having to search for and open Word files, calendar and Email programs individually.
2. Regardless of how well-organized your current file naming system may be with folders and sub-folders, practice management software increases your efficiency exponentially. You'll be able to find information quickly and easily because all data surrounding a case is linked together. You also won't need to run around the office looking for paper information.
3. Law firms have been known to make endless mistakes over the simple issue of a client changing their contact information, because that information resides in so many files. You can easily imagine the mistakes made and time lost because someone forgot to make the correction in one of the files. Whereas with practice management software a change of a client's address, phone or Email address is made once, on the client information screen, and automatically updated everywhere else.
4. Practice management programs with time and billing features enable you to access information from a central database and help you track your time and bill for it as you perform tasks on behalf of clients. This can be particularly helpful when you bill hourly.
5. Conflicts are another arena where practice management software can be a timesaver. True, it may be obvious if you've represented a particular client in the past. What may be less obvious is if you represented, for example, a codefendant with adverse interests.
Here again, a centralized database with robust search capabilities can turn up answers in seconds versus trying to flush out the information manually.
Evaluating Practice Management Software
Since practice management software programs all have similar functions, choosing the right program for your firm may at first seem daunting.
Here are a few things to consider:
1. Will the software need to work with applications you're currently running or will it serve as a total solution for your office?
2. Is security a big concern? If so you might want separate systems for front office and back office functions or verify that the program you are choosing has appropriate security options.
3. Does it seem intuitive and easy to use? However, you should not reject a solution just because it doesn't seem easy to use out of the box. A consultant can help you make the software easier for you to use.
4. How well does the software communicate with other software tools you're already using?
5. What's the cost of an on-premise system which must reside on a server you maintain versus a subscription for external hosting (software as a service)?
6. What are the total costs of ownership including training, upgrades and support?
You'll want to see a demo so you can observe how the software performs and assess the functionality of features that are critical for your office. In some cases, you can test drive the software during a free trial using several current matters, which can help you better ascertain the fit.
Implementing Practice Management Software
While selecting a system may seem daunting, implementing a new system may seem even more daunting. That's why it's recommended that you take a close look at the vendor, their track record, availability and the support they provide.
It is highly recommended that you get staff buy-in by educating staff as to how practice management software will make their lives easier. Then, train staff on how to get the most out of the new software. It is also recommended that you customize the software to fit your practice so it will run at peak efficiency. Make sure you run your old system parallel to the new system for several months to work out any kinks that may occur. Plan to re-evaluate your system twice yearly to insure it evolves with your growing practice. As your requirements change, more training or some additional customization can help you keep your solution working for you and helping you run your firm efficiently.
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