Eight extra hours a month is just one of the benefits law firms can achieve with practice management technology.
That translates to 12 days a year or just about two weeks. How that time translates to a return on investment, depends on what an attorney does with it.
If the time is used for billable work, Blue Hill Research estimates it can bes worth $22,425 per year, assuming a $233.70 billing rate, “the average, estimated fee paid to law firms outside of the AmLaw 200.” If the time is spent with friends, loved ones, or even professional development, the return might be, as the credit card commercial goes, “priceless.”
Yet time gained on an hourly basis is just one way to look at the return. Blue Hill Research also looked at cost reduction in staff. Small law firms with automation use 40% fewer staff – which is more important as a law firm grows to five or even 10 attorneys.
For example, Blue Hill assumes a $59,969 as “the median salary for one legal support staff.” On average the researches find a 5-attorney firm without practice management technology has 2.5 staff members in support, which nets out to $149,923 per year.
By contrast, a 5-attorney firm with practice management technology has 1.8 staff members in support, which tallies up to $107,088 per year – cost savings of $42,835.
The infographic below breaks down the number visually, though the complete report, with comprehensive data broken into different scenarios for different sized law firms, is available online at no cost (with registration): Building a Business Case for Law Practice Management.
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Infographic: Client Value as a Path to Law Firm Profitability