by Joe Ulm
As 2005 draws to a close it is common for law firms to look back at the past year, celebrate the victories that marked the year, and plan for the challenges that lie ahead. It’s the time of year when budgets are finalized and strategies for the New Year are discussed. Often this is the time of year when firms discuss the major projects proposed for the coming year and, not surprisingly, it is quite common for a technology project to be one of the discussion topics. Unfortunately, discussions regarding technology projects often get mired down in debate about the value of the project.
Understanding all the pros, cons, and future implications of a technology project can be quite daunting and the stakes are high. With law firms so dependent on their technology, a wrong decision on a given initiative can be more than costly to a firm, it can be absolutely crippling. Consequently, firms are often overly cautious when making decisions on their technology. This lack of action can keep a firm on aged technology which is equally as detrimental as making a wrong decision. Luckily, there are some actions that firms can take to evaluate the benefits of technology initiatives within their organization that don’t require the decision-maker to have a masters of science in computers.
The first problem many firms encounter is that they don’t have a frame of reference upon which to base their technology decisions. In order to place a proper value on a technology project it is essential to know the role technology is expected to play within your firm. This can be a bit difficult to define as many attorneys expect their computer to simply work. But laying a basis of expectation for your technology is the first critical step in deciding whether a technology project is even worth looking at in the first place. One of the easiest ways to develop expectations for your firm’s technology is to rank the functions it is expected to provide. Going through this process can be not only eye opening, but it can also be the building blocks for developing a true technology plan. For example, some firms consider remote access to data to be a critical function of their technology while other firms expect their attorneys to do all their work in the office and have no need for remote access. Knowing the value remote access has within your firm will allow you to quickly determine whether to look into the project further or simply disregard it.
The next step you want to take is to get an understanding of the benefits the proposed project will provide your firm. As opposed to the function the project provides, the benefits are the business value of the project such as the greater efficiency or increased productivity of staff members. Generally, software projects provide benefits such as efficiency and productivity gains while hardware projects limit the inherent risk a firm assumes by depending on technology. For example, a new document management system may provide a number of useful functions including the ability to search for documents quickly or access specific clauses with the click of a mouse. However, your evaluation should strive to include real-life considerations as well because, if your staff can already access what they need efficiently, the business value of a new document management system is limited. This makes the process of evaluating the business value of a given project a bit tricky and a true evaluation will almost certainly require an understanding of how staff members perform their jobs.
Now that you have an idea of the project benefit, you can apply that benefit against your frame of reference. This will give you an understanding of the specific value the project will provide your firm. Again, understanding which functions are critical within your firm will help you determine how important this project actually is. Applying the business value to your frame of reference also allows you to rank the importance of one project over another. Perhaps the project will provide a significant value to your firm, but another project will provide an even greater value. Additionally, you want to have a grasp of the alternative possibilities by knowing the cost/risk/value of not doing the project and by evaluating competitive products. This is where cost comes in. Since there are limits on every firm’s budget, an estimate of what a project will cost lets you know whether the project is feasible or not, or whether another product will be better suited to your budget.
After you have valued a project and selected a project, you can begin to look at the project specifics. This is the stage that gets frustrating for many attorneys. Attorneys by their very nature are analytical and want to have a complete grasp of the project details, but ultimately, it is the consultant’s or IT staff member’s responsibility to make this process easy. Understanding the project specifics shouldn’t require a degree in “geek speak” or hours of technical study. A good consultant or IT manager should be able to relate the project specifics clearly, in English. The onus to communicate the details of the project is on his or her shoulders – not yours. Additionally, all the project details should be documented in a project plan that lays out the anticipated timeline, costs, and resources necessary to complete the project. This will give you the information you need to discuss the details of the project and, should you decide to move forward with the project, help you easily adapt to any changes that have to be made during the project. The bottom line is that understanding the business value of a project is your responsibility, understanding the project specifics is something your consultant needs to communicate to you.
If you develop a technology frame of reference, determine the business value of projects, evaluate the business value in the context of your frame of reference, and review the project details, making your technology decisions becomes much easier. Preparing to make decisions takes some work, but once complete, you can move forward confidently, knowing that your firm will benefit from the project in specific and expected ways. Clearly, this process is not easy, but it is effective and likely to save you money and frustration in the long run. And since the price of making the wrong decision can be costly, the effort is well worth the reward.
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