Upgrading Technology in Law Firms: A Practical Guide
Are your people struggling with the tools they use every day? Re-keying the same details, hunting for documents, waiting for reports? Is your technology up to date enough to take full advantage of the modern, user-friendly systems now available, the ones that make life easier and improve the working environment for everyone in the firm?
If any of that strikes a chord, it's worth planning your next step properly. The firms that get most from technology plan it, involve their people early and judge every option by what it does for the business.
This guide sets out how Carton & Co approaches technology selection and implementation, whether you're replacing practice or case management systems, moving to the cloud or bringing in AI. It's written for managing partners, COOs and senior teams at law firms. Projects succeed or fail on how well the people and process side is handled, as much as on the technology.
People before technology
You can get good results from adequate technology if your people are motivated and engaged. The best technology will struggle if they are not.
- Engage lawyers and staff early. Don't present them with a done deal.
- Listen to their frustrations and requirements. Involve them in the decisions.
- Name champions in each team who will test, give feedback and help others.
- Paint a clear picture of the destination, so people keep going through the inevitable setbacks.
Technology projects involve dozens of small decisions and compromises. A clear view of why you're doing it and what good looks like keeps everyone pointed the same way.
The market has changed
The legal technology market has moved further in the last two years than in the ten before. Broadly there are three generations of system in use:
- On-premise systems built on SQL Server, many now approaching end of life.
- Cloud legal systems, where the legal supplier builds and runs the whole product, including hosting, security and AI.
- Newer platforms built on Microsoft or Salesforce, where the platform provides security, CRM and AI and the supplier builds the legal layer on top.
The established cloud products are capable and well proven. The platform-based products are newer and carry more delivery risk, but CRM and AI come with the platform.
A few years ago the selection criteria were cloud, open APIs and low-code configuration. They still matter. AI now belongs on the list too, because much of the future value comes from AI working on your documents, matters and processes. Ask every supplier:
- What their AI does today, in production, for firms like yours.
- What's on the roadmap and when.
- How AI is charged for and what's included in the base price.
- What it's likely to cost at your size once people use it every day.
Key steps to evaluate options, suppliers and solutions
1. Start with the business and IT strategy
There needs to be a business strategy in place for the next three to five years before choosing a new system: the areas of work the firm wants to grow, how it wants to work with clients and what needs to change to improve performance. If that isn't written down yet, that's where to start.
Our first step is usually to help the firm develop an IT strategy that fits its business plans, covering systems, infrastructure, data and AI. Because we also advise on business development and client relationships, it reflects how the firm wins and keeps clients. Talk to partners and team leaders about where time is lost and what clients expect. Detailed workflow design comes later, once the system is chosen and you're configuring it with the supplier.
2. Evaluate current systems & usage
Before investing in replacement, check whether current systems can be configured or used better. It often saves money and disruption.
- Are we using 60 to 70 per cent of what the current system can do?
- Can better configuration of what we already have solve the problem?
- What works well that we must keep?
- Where are the real gaps? Which are configuration issues?
- What does the current estate cost to run, including hosting and support? That's your baseline.
Focus first on your most important and profitable practice areas, where better technology drives most value.
3. Agree objectives & priorities
No system does everything perfectly, so every selection involves trade-offs. Agree the objectives with the partners before anyone looks at software.
- What outcomes matter most? Client service, efficiency, integration, management information, AI.
- Where can you compromise? Where are requirements absolute?
- What would differentiate suppliers in the areas critical to your practice?
Write them down. They become the brief for suppliers and guide you when comparing proposals and negotiating contracts.
4. Explore the full technology spectrum
Look at how the parts of your technology environment work together:
- Core systems: practice and case management, accounts, document management and CRM.
- Infrastructure: cloud, Microsoft 365 and security.
- Intelligent automation and AI.
- Business intelligence and reporting.
Bring accounts in early. Legal accounting and SRA compliance often take longer than case management and can end up setting the timetable. If your core systems are inadequate, fix those first, because AI works from the data and documents they hold.
Talk to key clients about your plans too. Technology that improves internal efficiency but makes life harder for clients won't work.
5. Focus on what truly differentiates
During evaluation, identify what actually differentiates suppliers in the areas critical to your practice. Use a lean selection process to understand quickly how systems would work for you.
Play back the challenges from the demonstrations and see how each supplier would tackle them.
Technology constantly evolves. You're selecting a long-term partner as well as software, one who will collaborate with you to adapt and develop systems over time. Assess their capability and willingness to work with you alongside their current feature list.
6. Structure the selection process
A clear process saves time and improves decisions. A typical outline for reaching a supplier decision:
- Initial engagement (weeks 1 to 2). Form the IT steering group. Document current state and requirements. Request outline responses from three to six suppliers and shortlist two or three.
- Demonstrations (weeks 3 to 6). Half-day demos focused on your priorities, with end users in the room. Probe further on critical requirements. Gather structured feedback.
- Detailed evaluation (weeks 7 to 12). Pilot on your own workflow where you can. Expand the specification with the preferred supplier. Take up references and visit reference sites. Start contract and implementation discussions early.
- Decision and planning (weeks 13 to 16). Finalise the selection, negotiate the contract, develop the implementation plan and secure resources.
Larger firms, or selections that span case management, accounts and CRM together, usually need longer.
7. Model the full cost
Build a five-year model for each route and for staying put, on both a cash and a P&L basis. Include licences, implementation, accounts, hosting, data migration, dual running and the cost of the legacy estate while it's still live. Keep quoted figures apart from estimates. Say which is which.
A per user licence is only part of the programme cost. The expensive parts are often the ones missing from a proposal. Rerun the model at each decision point as quotes firm up.
8. Compare options systematically
Create a structure for comparison from the outset, but don't over-complicate it. Focus on areas that matter for your practice. Engage with a preferred supplier early to refine specifications and implementation plans, moving beyond comparisons to actionable improvements.
Don't spend equal time with all suppliers. Invest progressively more time with your preferred partner to develop detailed implementation plans and strong working relationships.
- Questionnaire: Gather initial baseline information.
- Meetings/Interviews: Compile detailed information, identify issues, explore options.
- Steering Group: Form a group to lead the project and engage key people.
- Briefings: Submit to suppliers for comparable responses.
- Initial Demonstrations: Conduct half-day demos and evaluate feedback.
- Extended Demos: With preferred supplier(s), refine plans and contracts.
- Modify your specification: If need be, based on all you have seen and learned.
- Invest Time with your preferred supplier: to add more detail to your specification and plans for implementation.
- Confirm and Plan: Finalise selection and plan implementation.
