Laura Kennedy, a legal technology consultant with nearly 30 years of experience, discusses the evolution of law firm technology and billing practices. As the founder of Circle Management Group, she emphasizes the importance of firms viewing technology as an investment rather than an expense. Laura highlights the shift from traditional practice management software to more agile, project-based platforms that accommodate alternative fee arrangements. She notes that newer systems offer features like passive timekeeping and budget tracking, which can help firms transition away from the billable hour model.
Laura observes that while many lawyers are hesitant to abandon hourly billing, some firms are successfully implementing alternative fee structures. She shares an example of a healthcare law firm that has embraced this approach, leading to improved talent acquisition and retention. Laura points out that these firms can better anticipate revenue and bonus structures, making them more attractive to younger attorneys. She also discusses the benefits of subscription-based models for legal services, noting that they provide stable cash flow and can increase a firm's value when selling the practice.
Laura emphasizes the importance of purposeful technology investment for law firms. She advises against adopting technology simply because competitors use it, instead recommending that firms identify their specific needs and goals. Laura strongly advocates for working with trusted advisors or consultants to assess technology needs and prepare budgets. She stresses the critical importance of proper training, warning that underutilized software subscriptions are a waste of resources. Finally, Laura encourages lawyers to consider the potential long-term gains of investing time in training, rather than focusing on short-term billable hour losses.
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(92) A History (and the Future) of Legal Billing Technology with Laura Kennedy of Circle Management Group