Luddites Beware (Technology is Everywhere)

As I continue to focus on building firm value, to reap the benefits now and on exit, I must resist my luddite tendencies and embrace technology in my law practice.

First, we, as attorneys, have an ethical obligation to do so.  “To maintain the requisite knowledge and skill, a lawyer should … (ii) keep abreast of the benefits and risks associated with technology the lawyer uses to provide services to clients or to store or transmit confidential information.” New York Rules of Professional Conduct 1.1, Comment 8.  “Because of the speed at which technology is advancing, the lawyer's duty of competence must evolve with the technologies.” Anthony E. Davis and Steven M. Puiszis, An Update on Lawyers' Duty of Technological Competence: Part 1, New York Law Journal, March 01, 2019 available at https://www.law.com/newyorklawjournal/2019/03/01/an-update-on-lawyers-duty-of-technological-competence-part-1/.

Beyond our ethical obligations, utilizing technology makes good business sense.  Clients expect efficient representation that is, in part, aided by technological tools.  These tools can make our practice more cost effective.  They can also make our own work lives easier and take some of the drudgery out of the everyday.

For purposes of this column, though, I want to look beyond the operational benefits of technology and emphasize that technology also contributes to the value of a law firm.  “Buyers [and managing partners in existing firms] want to see technology investments in three main places: financials, operations, and marketing. . . . [If you have technology well integrated into your firm] it gives you data to demonstrate the value of your firm, and you’ll be able to sell it for a higher price. . . .” Brooke Lively, Exit on Top: Sell Your Law Firm to the Right Person at the Right Time for the Right Price, at 148 -153.

And the inverse is true, lack of technological infrastructure “can easily dampen the appeal of an otherwise green-lighted [law firm] merger.”  Key Technology Considerations For Merging Law Firms available at https://www.theaccessgroup.com/en-gb/blog/ams-key-tech-considerations-for-merging-law-firms/. At one time, I was evaluating the potential acquisition of another law practice but was put off when I asked for client lists and was given an old-school paper rolodex. Needless to say, I did not make an offer to purchase the practice.

While I am not advocating for turning your practice over to ChatGPT (please do not do that), burying our heads in the sand regarding technology is equally ill-advised.  To smooth operations now and maximize the value of our firms, we must embrace technology.