Image courtesy of CoreTech
Technology is a business enabler. In a law firm, probably the most important technology as business enabler are attorneys’ laptops. Attorneys live or die by their laptops. According to the ILTA 2021 Tech Survey, of all the technologies that firms delivered in the last two years that generated the most positive response from lawyers, laptops were one of the top responses.
It should not be surprising, then, that the percentage of lawyers using laptops as desktops is way up — at a median of 95%. Laptops are ruling the roost—so much so that the technology provided by the firm is viewed as one of the top perks to lure new hires.
But procuring laptops isn’t “one and done”: there are supply chain issues, technology becomes obsolete, new versions are issued, cash flow of the firm cycles, partnerships grow, retire, attorney preferences change, new associates want new and different devices, all while the competition for talent becomes the most heated on record.
Because of this complexity, firms without the right strategy are prone to negative consequences: overpaying, holding on to tech past its useful life, failing to keep their attorneys productive and happy with the tools of their trade. It’s time to think about how to optimize firms’ technology through an intelligent financial strategy.
The Power of Productivity and the Billable Hour
First off, let’s be clear: lawyers want top of the line technology so they can increase their productivity and optimize billable hours. Every gain in efficiency frees up lawyers to focus on high-value activities and increase billable work, period. Lawyers cannot be held back by inefficient technology, the very thing meant to enable their productivity.
During their onboarding, new associates and lateral partners want to know their technology, and especially their laptops, are going to be a seamless extension of their ambition and drive, not an obstacle to delivering their clients’ goals and firm billable requirements.
At the same time, partners want to keep expenses low — and PPP high. This is a challenge when overhead expenses are on the rise — including technology spend. In fact, tech spend is one of the top expense increases YoY for the last two years according to Thomson Reuters’ Law Firm Financial Index.
So, let’s dig into that intelligent financial strategy that helps firms ensure they won’t overpay for their tech.
Strategy That Makes it Work: Leasing Laptops to Optimize Tech and Reduce Costs
Leasing is an intelligent financial strategy that helps the firm align finances with technology needs and business objectives. Leasing enables firms to reduce their tech by leveraging aggressive residuals that allow them to pay less. This alone is a tangible and impactful benefit.
But leasing also helps firms optimize their technology through an array of soft financial benefits that work particularly well for law firm operations. For instance, paying cash to equip a firm’s attorneys with the technology they require makes a big hit into PPP for that particular year and may unfairly impact some partners who may be retiring or may have just made partner.
If the firm leases the laptops, the firm pays only for a portion of the total cost spread out for the duration of the term. In these scenarios, leasing can offer custom arrangements that are tailored to partner distribution preferences to accommodate retirees or new onboards or other circumstances.
Most importantly, leasing laptops comes with a refresh cycle that ensures your attorneys are equipped in the most up-to-date equipment to ensure your attorneys are productive, efficient and secure while accommodating device and platform preferences. With a refresh cycle, firms do not incentivize bad behavior such as holding onto tech past its useful life — which brings us to the next key point about today’s tech: security.
The Rise of Cyber Crime and Outdated Equipment
CIOs and CISOs also want their firms’ attorneys equipped in the most up-to-date laptops—this time, for security reasons. We all now know law firms are prime targets for the theft of sensitive client information, but with more lawyers working remotely, firms are more vulnerable than ever. In 2021, there was a 64% rise in threat volume of malicious attacks and the average cost of a data breach increased by a full 10%.
Technology is built to obsolesce — three years is the approximate productive lifespan of a laptop. (Look up Moore’s Law from Intel founder Gordon Moore). Running new software on older hardware often does not work as the software outperforms the hardware and causes errors or doesn’t run at all — including cyber security software and Microsoft. Outdated equipment leaves firms vulnerable in an increasingly challenging cyber landscape.
As a business imperative, attorneys cannot be operating outdated laptops that may not run cyber security software properly.
Leasing firms’ laptop fleet helps firms double down on security by ensuring the firm is purged of out-of-date equipment while adding a layer of additional security and accountability through asset management. With the asset management afforded by leasing, firms know where their laptops are at all times, even remote devices, loner laptops, and more. In a hybrid world, security starts with knowing the location and disposition of your assets- and that’s precisely what asset management does.
Conclusion
Law firms must face a future of increased digitization where technology will be increasingly important, and it starts with laptops. Leasing intelligently helps firms cut the costs of procuring laptops while delivering an array of strategic benefits that impact the entire firm, from the attorneys, to partners, to the CISOs and COOS. It’s simply smart financial strategy that pays dividends across the firm.
(Photo provided by CoreTech)
Mike Henderson is a Lead Client Impact Executive at CoreTech. He brings over two decades of knowledge capital and dedicated experience in the high-tech corporate leasing industry.
(Photo provided by CoreTech)
Whitney Jones (Morris) is a Client Impact Executive at CoreTech. She has nearly a decade of expertise and a demonstrated passion for technology and equipment finance in the legal industry..
(Photo provided by CoreTech)
Bill Pitcairn is a Client Impact Executive with CoreTech. He has a distinguished track record in the finance industry, leading all facets of sales functions with an emphasis on strategic planning and revenue growth.
