Back in November 2016, a study showed that more than half of claimant PI law firms will be forced to shut down or look for other work if the government’s proposed reforms go through1. Since then, the reforms have been dropped, before being put back on the agenda in June 2017 as part of the new Civil Liability Bill.
The uncertainty surrounding this contentious issue has meant that, understandably, many firms operating within the PI sector are nervous about the future. The natural reaction from many has been to reduce spending across all areas of the firm to ensure reserves are significant enough to ride out the storm when it hits.
But is this simply accepting defeat?
Firms are now frantically reassessing their business models and looking to diversify into other areas, but it’s those who truly embrace change and are willing to transform their firm that will prosper.
Many businesses, not just law firms, are guilty of doing the same thing for years because ‘that’s the way they’ve always done it’. But, by taking a step back, firms can discover a better way and unlock their full potential.
Leaders should look for ways to eliminate tedious and repetitive admin-based tasks that take up valuable time. Modern technology has facilitated new ways of working so firms can maximise their existing resources to increase productivity. Technology designed to enable flexible working, a paperless office and automation of tasks is now affordable for firms of all sizes.
Reducing spend may appear to reduce financial risk, but a lack of investment in IT only allows risk to develop in other areas – particularly when it comes to combatting the threat of cyber attacks. Not only can cloud-based technology enhance IT security, it gives firms more flexibility to scale their resources. If your firm grows or shrinks, your IT spend can too.
Whilst some firms are waiting for change to happen, others are taking advantage of technology to make their firm more profitable. No matter what the future brings, those who are investing to get ahead of the competition are in a far better position to succeed.