Going about procurement in the right way is essential to an efficient purchasing process. Enabling you to unlock increased levels of customer service and productivity sooner and more cost-effectively.
However, investing hours of valuable time and money in setting this up may seem a little daunting at first, and managers are right to have reservations. Since it can easily become an overly complex, and onerous, process.
Unless, of course, you have a plan!
A plan that takes you from an initial idea, that you really must purchase a new piece of software to solve a business challenge or help unlock a new market or opportunity. Through the ‘shopping’ stage; to implementing the software you have bought – make sure you get the positive results you are looking for.
With this in mind, we have put together this handy step-by-step procurement guide. This includes the top tips you will need to provide a focus on demystifying the process, and take you through the following 3 stages:
- Qualifying that it meets your needs;
- Contractual due diligence;
- Ensuring it will deliver the required results.
The Procurement Guide And Plan
Stage 1: Qualifying that it meets your needs
Our Top Tips for this are as follows:
● Arrange for your IT representative, or department manager, to be actively involved in the procurement process. Especially if you don't have the IT skills to tell if the software is the best one for your current, and future needs. Also, how it will integrate with any existing systems? An IT specialist should have the knowledge to explore the nitty gritty of procurement. For example, whether your data will be secure; if what you are being offered by the supplier does represent value for money, and so on.
● Input from your lawyers can also prove invaluable throughout this process. In this stage regarding the changes they would like to see the software make. How it might help them do their jobs more easily or efficiently. This could range from automating time-consuming tasks, like verifying client identification during the onboarding process, to using an online tool for assessing their client's chances of success in litigation.
● Calculate your return on investment or ROI. Once you have all the information to hand about the software and most suitable products. This can be measured in several ways. For example, time saved can lead to improved efficiency and better customer service. Followed in turn by retention, and business growth. Consider any improvement in the running of your practice or profitability you are expecting to see after the procurement. Having all this information to hand could well be a critical factor in getting the cost approved by your finance department, or partners. Especially if the new software will be beneficial to more than one team, or is scalable.
A list of useful questions to ask during Stage 1, inspired in part, from the Law Society’s top tips for when seeking a new Case Management System provider:
● Is the software you are considering Cloud or server-based? True cloud-based software will enable access from anywhere with an internet connection, together with the ability to scale without the need to invest in new on-premise hardware.
● Does the software you are considering have both an android and iOS app? Is an app even required?
● Will this system help you provide the best customer service? The last best digital experience that anyone has anywhere becomes the minimum expectation for the experience they want everywhere. Will you be less competitive if you don’t purchase it?
● How often is the software likely to be updated? This must be done regularly. You may be invited to join the supplier's forum – to contribute to enhancement suggestions; beta user groups; or perhaps a mailing list – to receive news of what they are planning to do.
● Is the software scalable if you are growing your business; intend to, or changing it in some way? Remember that adding new programs to your system can be time-consuming. When you take into account all of the steps involved in the process. Wouldn't it be possible to purchase the software now, which will also cover your future needs?
● Is it possible to customise the software you are looking at? Does the vendor have a designated team to do the work? How much will this cost? Could the changes be made in-house, or outsourced to a different software developer whose fee would be lower?
● Is the supplier aware of any issues you might face when you first implement the software? What lessons have already been learned by their other customers, and are these being remedied?
● What about security? Will your information remain confidential or does it risk being lost? Also, the funds passing through your accounting system. You might also like to ask the supplier if all of the data on the software will be encrypted, and audited by an independent third party.
● Are there any product reviews available online by other lawyers? Not only those which might appear on the supplier's website. You might like to ask a question online about the software if you still aren't sure. You might find the answer to what you need to know on the supplier's, or another lawyer's, social media.
● Is the software compliant with the SRA’s principles and standards? A useful guide to lawtech compliance is available on the SRA website.
● Maybe you don't need to purchase all of the systems at once, but can add to it gradually. If so, which part of it will have the greatest impact on the work your business does? Possibly saving lawyers from doing the more mundane tasks, and letting them focus instead on higher value or complex matters. If this will boost morale it could be especially helpful where some team members are reluctant to change tried and tested procedures, but which are in reality holding them back in creating higher profit figures and better customer service.
Stage 2: Contractual due diligence
You should have a good idea by now of what needs to be covered in the sales contract, but before you sign on the dotted line, our top tip for this stage is to consider asking the questions below. Which gives a deeper dive into the cost of the procurement:
● Will there be any hidden fees, or is what you are paying subject to negotiation? The subscription model, which most cloud-based providers offer on a monthly basis, is calculated on the number of users. Or, if you choose to pay annually, this could be at a discount. It's a good idea to also consider your exit strategy if you wish to terminate the agreement. Some suppliers also charge an additional fee for installation; data transfers; maintenance; training, and ongoing support if you only sign up for a short period of time.
● How much will it cost to add a new employee to the case management software you are purchasing, or remove one who is leaving? How will this work? The worst-case scenario is that you will only be able to add or remove users, on the date when you renew your contract annually. If so, you will have to pay until then for one or more licences you are no longer using!
● Can you have a full, or partial refund, if you aren't entirely satisfied with the product? Is there a free trial period?
● How good will the support be once you have entered into an agreement to use the system? This is also usually dealt with in the contract. Consider your requirements outside office hours; whether there is a dedicated support department; how long you will need to wait for assistance, and any extra fees for this.
● The transfer of your existing data to the new system will need to be done as seamlessly as possible, so as not to disrupt your business. Again it's important to explore exactly how this will happen. What will be the plan for the implementation of your new system, and who will be looking after this? There will usually be a project manager, plus a systems analyst who will deal with data migration, and a solutions person to help resolve any challenges you might face in getting started. Will there be an extra fee for the migration; how long will it take, and how should you prepare for it? Also, what will happen if you need to recover your data? Again, check in the contract that you will receive enough support at this time.
Stage 3: Ensuring it will deliver the required results
The final step involves the implementation of the new software; integrating this with your existing system, and training employees to use it.
Our top tips for doing this optimally are listed below. With the aim of creating an environment in which all, not just team leaders or managers, know what is happening and why it’s important. Fostering a positive mindset across the user base, to buy-in to the changes and participate fully in making the best use of the new system.
● Putting policies in place to facilitate the implementation. To make sure everyone knows exactly what is happening and is completely on board with the changes.
● Establishing a team of specific individuals to champion the new software, who are readily available to deal with any concerns or problems in using it. In the case of smaller firms, one person may fulfil this role.
● Undertake a pilot or staged rollout. Ideally with only one or two teams/groups who will be most affected by the change. Allowing for any problems to be ironed out in a smaller group of users. To give the project more credibility, and increase confidence in its efficacy, when it is rolled out across the organisation.
● Training sessions are a vital part of Stage 3. Be prepared to provide extra support if need be. Since some will find this easier than others. Resistance or a lack of understanding can result in misuse, or all of the new facilities not being used.
● Asking for feedback from everyone involved in all 3 stages of the procurement can help to keep managers; employees, and support staff positively engaged. Especially when the feedback is actioned.
● Once you have eased into this stage keep your eye on the future. By staying up-to-date with any new developments or products which have come onto the market since you bought yours. This could still be part of the practice manager's role. Or again be entrusted to the implementation team, if you have created one.
● Depending on the extent of the changes you are making through this procurement, you might consider revisiting your hiring policies in Stage 3. To attract new talent with relatable skills to any business-critical software you are purchasing.
Real-life questions we get asked by firms
You may also find the following helpful when formulating your hit list of questions to ask the next software vendor you’re in talks with. These are three of the most frequently asked questions we get asked prior to a firm investing in inCase:
Q1. What support is included with the license fee? And are there any SLAs (e.g. how long does it take to fix/update issues)?
A1. All new clients are provided with a 1-to-2-hour demonstration/training on the following:
- App from an end-user perspective
- How the clients CMS integrates with the app
- Admin Portal
- Gateway Portal (if purchased)
Once on-boarded we resolve any issue within 6 business hours, which is written into our Terms of Business. We also offer clients the option to join our Marketing & Technical Focus groups, which are held once a month via video conferencing. These 30-minute focus groups enable users to get the most out of our app and its features.
Q2. Are you GDPR compliant? And how do you ensure the protection of client data in the inCase app?
A2. Yes, inCase is GDPR compliant. All data is stored on AWS Servers in London, therefore protected by GDPR regulations. We also have the Cyber Essentials + Kitemark which protects against the growing threat of cyber-attacks in the UK.
Q3. How long does the integration process take? And what resource is req. from the law firm to be aligned during the process?
A3. It usually takes up to 8 weeks. Our Client Services team will take care of the initial set-up and integration process. However, we will require each firm to choose their design/logo and branding of their app; the Process Flows they intend to use in each department; and access to the firm’s CMS to complete the integration process.
We integrate with all Case Management Systems and provide an integration guarantee. This states that if we’re unable to integrate with the firm’s CMS based on the specification we provide, we refund any costs paid.
In summary
Getting procurement right requires a great deal of due diligence upfront. Creating your very own plan, 3 stages or otherwise. Building good relationships with your potential supplier; IT staff or consultant; and employees in the process.
As for most legal businesses, procurement is likely to be an ongoing iterative process. Using learnings from past lawtech purchases to inform the next. Not too dissimilar to how many technology vendors enhance their software iteratively – through agile methods of product development. The key is to document the improvements to your plan, so it can be of benefit to everyone in your firm, time and time again.
Now that the legal industry is relying more heavily on technology and new and more sophisticated software is regularly becoming available, ensure that you’re in a position to take a competitive advantage – by getting your procurement strategy right, today.