By Vanessa Jerrom, Senior Lead Consultant at Legal Futures Associate BigHand
I recently had the pleasure of contributing to Modern Law’s feature about innovative products designed with the customer in mind (naturally, BigHand Resource Management was a perfect fit!). In the piece, I referenced two key stats from the latest BigHand market research:
- 36% of respondents said that partners picking resources based on personal preference was a challenge for their firm.
- 41% have no or only partial access to information relating to the different skill sets of each associate.
When both factors come into play within a firm, they create a potentially harmful situation. Unconscious bias and lack of evidence in resource allocation decisions can negatively affect both lawyer experience and client service delivery. Although these numbers may seem low, over a third of firms struggle with partner-led staffing, and nearly half lack the necessary skills data – both of which significantly impact a large number of associates. It’s important to dig deeper into what this data means for firms and how they can address resource allocation shortcomings to meet the shifting attitudes of clients when buying legal services.
The hidden costs of resource mismanagement
A leading contributor to suboptimal resource management in law firms is a lack of transparency. Without clear visibility into skills and workload, partners often default to familiar associates rather than assigning cases based on expertise, availability, or career goals. This creates utilisation gaps, with some lawyers overworked and others overlooked. The consequences include heightened stress levels, burnout, and higher attrition rates among lawyers.
BigHand’s data reveals that 72% of firms report increasing or steady attrition among equity partners and 71% experience the same with junior associates. This talent turnover disrupts client services and damages relationships, which is particularly crucial in an era of shifting client expectations. To navigate these challenges, it would be in firms’ best interests to prioritise resource management strategies that improve skill-based work matching and mitigate unconscious bias risks. This proactive approach will enhance lawyer satisfaction and retention, maintain service quality, and solidify the firm’s reputation in an evolving legal marketplace.
Meeting modern client expectations
Happy, properly utilised lawyers are a firm’s key asset. By addressing the fair distribution of work and promoting lawyer well-being, firms not only enhance internal morale, but also position themselves to effectively meet client expectations.
BigHand’s data reports that clients are increasingly cost-conscious, with 40% reducing legal budgets and 34% cutting down the number of firms on their panels. Furthermore, clients increasingly demand greater transparency, including alignment with diversity, equity, and inclusion (DEI) principles, with 33% of firms losing clients to competitors that better align with their DEI criteria.
To stay competitive, firms must demonstrate their DEI alignment and value in cost-efficiency more effectively than ever. Those that fail to address their resource allocation issues may find themselves losing clients to more adaptable firms.
How can firms prove their value?
Firms that embrace technology to solve their resourcing challenges are gaining a competitive edge. BigHand research showed that 64% of law firms actively highlight efficiency gains in response to evolving client demands, particularly when responding to Requests for Information (RFIs). By automating resource allocation and having a real-time view of skills and availability, these firms are better equipped to deliver value.
Encouragingly, buy-in from progressive firm leaders continues to grow, with 58% of firms already having technology in place to support resource management and 13% planning to invest in such systems within the next 24 months. Having the right legal resource management solution helps identify areas of improvement when it comes to work allocation. Considering the market state of play, it’s now more important than ever for law firms to take stock and ask themselves whether they’re truly making the most of their resources.
The process starts with a quick, free health check of your current approach to resource management. Together, we’ll review the best solution to help you address any inefficiencies that are blunting your competitive edge. Reach out today to get started!
