“But what’s the business case?” Law firm IT directors and managers have heard this question many times as they submitted budgets or project proposals to managing partners. In my experience, the answers are of variable quality and in only a few cases would they pass any quantitative analysis.
Identifying the right metrics to measure for a business case is, of course, the key to success here. Superficially, law firms are in business to provide returns to partners, who are their shareholders. Ergo, the only business case which makes sense is one which increases those returns, preferably directly and quickly. An analysis of profits over the past few years, however, a process which is conducted systematically in Australia, shows that rates and hours have been the only significant drivers of profit increases. Rates have moved up with the market and lawyers (especially partners it seems) are working harder and longer. Other studies have shown little or no correlation between IT spend and profitability – indeed there is some evidence that the trend is negative.
