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Last year, the amount of data being produced and accessed was predicted to double by 2020, but why are companies putting so much importance on compiling and analysing data?
The Evolv 2013 Workforce Performance Report explains why:
“Fortune 500 companies are investing tens of billions of dollars in Big Data initiatives for a simple reason: to save money and gain market share by accurately predicting future behavior rather than guessing at it. Rapidly advancing analytics-based solutions have changed how forward-thinking employers manage their workforces to help them become more productive and profitable.”
Basically, if you can monitor how your company is performing by analysing data – whether it’s the company as a whole, at a departmental level or the individual employees – then that data becomes key to making your business more efficient and productive. The end result is increased profitability.
This is true for businesses of all sizes throughout all industries. Legal firms are no exception, and, in many ways, could benefit even more from data analysis.
What are the main types of data a law firm should be looking at to improve profitability?
Data is only beneficial if it can be used. There is no point in collecting data that isn’t helpful to your company. So it is imperative to identify what type of data your law firm should be looking at to find ways to increase profitability.
Analysing what your staff are spending most of their time on can give valuable insight into where time is being wasted. By then streamlining processes, re-delegating tasks to a different department, or indeed using an appropriate software tool, efficiency can be maximised, as well as profits. DPS Spitfire was developed to meet this need. An online portal that combines email, calendars, tasks, time-tracking, dictation and case management, it has integrated reporting features that are easily accessible and represented with simple, clear graphics.
By finding out who your highest-paying customers are, you can create more targeted, effective marketing to get more of this type of repeat business. The same goes for looking at the different practices of law within your firm. If certain ones are more profitable, then concentrating efforts on these will lead to higher gains.
Good client service
The best way to keep clients happy is to make and meet commitments. Therefore, client service is paramount. By monitoring data, it will highlight what works and what doesn’t. It will also show if departments or individuals are struggling or excelling, highlighting where training or rewards might be appropriate. Passing the data on to your team makes members more aware of their work habits.
By analysing insightful client service data, you can see the type of employees that work well for your organisation. This means that you can be much more specific and targeted in your recruitment process.
Making positive moves based on data findings that not only increase profitability but also improve the working environment will show clients and employees alike that you have an overall progressive company policy and are open to change.
The Sodexo 2016 Workplace Trends Report detailed an insurance company that, after analysing productivity data, found that work-from-home employees were 18–22% more productive than office-based workers. Consequently, they implemented a new work-from-home policy. This benefitted staff by allowing more flexibility, but also increased productivity and ultimately profits.
To talk to our team about a software solution that could help you gather data, get in touch today.