Originally published on April 19, 2010 in our free SmallLaw newsletter.
In today's economy, "law firms must run lean and mean to remain competitive and profitable." However, according to the University of Florida Levin School of Law's "2010 Perfect Practice Legal Technology Institute Study" (PP-LTI Study), small law firms have largely failed to implement technologies that would help them achieve this goal. Furthermore, despite prevalent concerns about client confidentiality and security, small firms often fail to embrace technologies that address these very issues.Legal Technology Institute director Andrew Adkins says that the original goal of the PP-LTI Study was to determine how many legal professionals use practice management software, but it expanded to cover other technologies as well.
Small Firms Fail to Adopt Basic Technologies
Among the results that the PP-LTI Study authors found "surprising" was the failure of legal professionals to adopt simple technologies, which cost relatively little but can boost efficiency. For example, dual computer monitors.
Adkins was also "amazed" that more small firms have not implemented document management systems. A similar study, conducted in 2000, concluded that 50% of legal professionals were not using DMSs. The PP-LTI Study shows that 52% of those surveyed still do not use the technology. Small firms are significantly less likely to use document management systems than those in larger firms as 80% of the respondents who reported using a document management system worked in large firms.
Similarly, the study's authors were surprised to find that — despite concerns about client confidentiality and security — many small firms do not use metadata cleanup software or email encryption. Again, larger firms lead the way: 61% of small firms said that they did not use metadata cleanup software. Of the 25% of respondents who reported using email encryption, only 20% were at small firms.
Large Firms Have a Significant Lead Over Small Firms
It is clear from the PP-LTI Study that size matters. Overall, small firms lagged behind their large firm counterparts in the adoption of common technologies. For example, while tools for routing and notifications of paperless workflow seem to be catching on across the industry, they're much more prevalent at large firms. Also, nearly 50% of small firms reported using a practice management system (such as AbacusLaw or Amicus Attorney) versus nearly 83% of large firms.
What are the perceived barriers regarding the use of practice management systems? Respondents — especially those in small firms — were most likely to explain their non-use with the "if it ain't broke, don't fix it" rationale, noting that their current systems were working and "not worth changing."
While the "cost of maintaining" a practice management system was a close second, respondents also identified concerns about integration with other technologies, the inability to "see the benefits," and the "cost of computer upgrades" as primary barriers to adoption. Although there was consensus, among survey respondents about the issues that stand in the way, small firm lawyers were significantly more likely than their large firm counterparts to express concern about each.
Of course, it is no surprise that small firm users are more concerned about cost, maintenance, and integration issues. Compared to their large firm counterparts, small practitioners lack the financial and IT "buffers" that help smooth the way for the adoption of new technologies. However, the PP-LTI Study found that those firms without a practice management system estimated its cost as more than double what those who do use such software actually paid.
Read our companion article, New Study Shows Large Firms Behind the Technology Curve.
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