If you’re part of a law firm, you understand the importance of clear, objective facts. Evidence is what wins cases… and it’s also what helps law firms grow and evolve. Instead of making business decisions based on instincts or hearsay, you can develop your firm through data analytics. By compiling and assessing this data, you’ll have a better idea of what you’re doing right, where you could improve, and what you should focus on for future growth.
Here are 4 ways in which data analytics will help your law firm grow:
Stay on Budget and Stick to Timelines
Between completing projects, working with clients, and billing, it’s easy to go off budget and veer from a timeline. But the better you stay on task, the better it is for your firm and your clients. Through data analytics, you can predict the time and budget you’ll need for litigation matters, thus helping you decide whether to take on more clients. You’ll also have a better grasp of how to divide your time, as you can assess how far along you are on certain projects and which ones need your focus. You can then reprioritize your strategy, realign your budget, and ensure you’re hitting your goals and deadlines every time. Additionally, you can determine how profitable a potential case is by analyzing its similarities to former cases.
Predict Future Cases
Previous cases can serve as a predictor for the outcome of future cases. With legal analytics, you can easily gain an understanding of what types of cases you tend to win and which you win less often. You can also determine how well you stack up against different opposing counsels, how well you do with certain judges, etc. With this information, you can make more informed decisions regarding when to settle a case and when to continue fighting. You can also examine why certain cases are less successful and take actions to improve your outcomes, such as by hiring the right people to help you win in the future.
Hire (and Retain) the Best Candidates
Legal analytics provide a lens through which you can examine your current workforce and fill in any experiential or knowledge gaps. By creating an overview of who’s doing what, you can more easily tell what tasks still need support, and you can take steps to hire the people most suited to handle them. Similarly, data analytics are useful for assessing your company’s retention and turnover. If certain employees are leaving in droves, you can look for patterns to help understand when other employees may move on, too. Due to the competitiveness of certain firms, this is exactly the information you need to ensure you’re keeping the talent that best helps your clients.
Make Yourself More Competitive
When hiring counsel, a prospective client wants to know that they’re getting the highest degree of representation they can afford. It’s not enough to tell them you’re the best choice; instead, show it to them. By compiling data about your wins and successes, you’ll stand apart from the competition and increase your chances of being hired. And by utilizing data analytics to enhance the other topics on this list, you’ll provide your client with the best representation possible, just like you said.
Legal analytics are becoming a staple for law firms. They make you more competitive, more effective, more informed, and more reliable. Every law firm understands that facts are important for winning cases, and they’re just as important for evolving your practice. And once you have the data you need—coupled with the right technologies and IT support—you can make more informed decisions to help your business grow.