Imagine you are part of a small-to medium-sized law firm (for many of you that may be extremely easy) that is considering the implementation of document assembly software in your practice. What might on the top of your “must have” column when deliberating such a decision?
Is it “a chance to be labeled an innovator?” Or, “a need to keep up with the times?” Maybe those are on your list, but I’ll bet you’ve saved the top slot for “get a return on investment.” And, I certainly don’t blame you. When spending money on integrating any new technology, you want to know that — eventually, quickly — it will be worth the up-front expenditures.
#1 Start with a Baseline Measurement
Understanding whether you will get that return on investment (ROI) requires accurate measurements of what you spend and what you will get back. That in itself might involve some data gathering. Before you spend a dollar on automation, it’s a smart idea to know how much time and person power — and therefore, money — go into the workflow tasks of your office.
How long does it take to create a legal document? How many partner hours go into it? How about the time commitment of your support legal secretary, paralegal or admin staff? Remember, you can’t measure anything effectively without good data.
#2 Define Your Win
Even if you have a clear measurement on how much time and money currently goes into your document assembly process, the concept of ROI is not defined universally across all law practices. For some firms, ROI is measured in minutes saved, and those minutes translate to time that can be spent on client work or other billable hours.
According to a 2011 study by LegalFutures, taking instruction and drafting one of several common legal documents requires about 86 minutes on average. When using an automated system, that time can be cut by an average of 50%. That time saving can be passed on to more premium billable hours, and over the long term, can generate substantial new revenue.
Some firms may measure that ROI in increased efficiency. Document assembly software streamlines processes, manages version control, and reduces typos. Whether your firm handles high-volume, low-profit margin documents or low-volume, high-profit ones, production time for producing high-quality contracts or agreements without multiple rounds of revisions is slashed.
#3 Calculate the Numbers
Many firms may want to use dollars and cents to measure the advantage of incorporating document automation into their offices. Researching cost and scope of software alternatives — and there are many — can give you a better idea of what kind of system would be most advantageous to your infrastructure and current staff. Using the simple ROI formula of:
Net Profit/Total Investment x 100 = ROI
to determine your short-term and long-term returns will help calculate cost-benefit analysis.
ROI can be measured in many ways, but at JurisDOC, we believe that time is money. Our software — with legal document assembly, time tracking, billing, and processing payment functions — is newly priced at only $50/month per user, which delivers a quick return on investment, no matter how you measure it.
We’re so sure that you’ll find JurisDOC useful that we offer a free trial. Click here to learn more or click here to download your free trial. You’ll be amazed at how quickly you can start saving time and money.