Using technology to achieve law firm business objectives: A tale of two birds

In these trying economic times, many law firms are refocusing on business basics, looking to better understand how they are performing. Successful firms are translating business strategies into tangible goals and objectives, and then systematically measuring their progress against these goals. The effective use of IT makes this performance management possible.

An example of how technology can be used to improve performance can be found at Bird & Bird. Over the past decade, one of the firm’s primary business strategies has been growth. The firm has grown rapidly in recent years, opening 12 new offices since 2000.

Laying a solid foundation for growth

Bird & Bird’s ability to successfully execute its growth strategy was made possible by its effective use of technology. To begin with, the firm made it a priority to systematically roll out its financial and business management system, ADERANT Expert, to new offices, giving them the right foundation for success.

One of the key attributes of Bird & Bird’s selection as ‘International law firm of the year’ in 2008 was its successful global expansion, made possible largely by its rapid implementation of a single integrated application suite for time and billing, financial management and business intelligence. The firm’s ability to quickly deploy this technology to new offices, and get practitioners and support staff up and running on it, has played a central role in earning these industry accolades.

Communication is key

Building on this solid foundation, Bird & Bird focused on enabling fluid communications between its management, finance and administration, and IT teams. Combined, the firm’s IT and finance teams employ 100 people around the world. Each group understands the firm’s overall business strategy and, through the use of effective reporting and business intelligence tools, understands how their daily performance supports those broader firm objectives.

This communications loop is also powered by technology, providing core personnel with the key measurements and indicators they need to understand how they performing and what needs to happen to achieve their business objectives.

Timely and accurate information

Bird & Bird’s financial systems team leveraged the integrated reporting capabilities of its practice management system to improve information access. However, embracing a new way of reporting and providing users, in particular the firm’s lawyers and partners, with key performance information was not easy.

First, the firm had to move away from a conservative approach on reporting focused on using Crystal Reports and Microsoft Excel to a more modern – and effective – approach to integrated reporting. The more modern approach to reporting overcame one of the firm’s biggest challenges – knowing what version of a report is the most up-to-date and accurate. By providing a single system for all time and billing and financial data, the firm’s practice management application ensured that the firm’s data – and reports – were accurate.

Next, Bird & Bird had to figure out the best method for delivering this information so that it would be the most beneficial. The firm experimented on what information partners, lawyers and others needed to improve their performance and developed several customised reports.

As a result of this trial and error process, the Bird & Bird developed a new report about their top clients that enabled its partners to increase the amount of revenue generated. The firm also used its integrated reporting tools to give partners greater visibility into their book of business. The firm grouped clients based on practice groups so as to create reports that gave fee-earners and its entire management team more detail on each client.

By providing the lawyers with access to profitability information, Bird & Bird was able to make them more nimble and helped them identify performance trends more quickly. The firm also solicited feedback from its marketing group to develop a monthly report on top clients, including revenues and profitability details. These reports were supplemented by special client reports that enable the firm to make tailored marketing and strategy recommendations.

Changing the perception of technology

Another key to Bird & Bird’s success is that both its finance and IT teams have worked together closely to change the opinion that the firm’s management team has towards technology. Before, the management team did not see tangible value in technology, viewing it largely as an expense. After implementing an integrated reporting system and business intelligence tools, that perception has changed.

Today, Bird & Bird’s management team increasingly views technology as an investment that adds significant value. It is seen as a means of gaining a competitive advantage and as a way to not only provide the infrastructure to support growth, but to also enable proactive behaviour and informed decision-making throughout the firm.

David Thorpe is general manager, EMEA at ADERANT and can be contacted at david.thorpe@aderant.com