Back to William H. Skeels, IV Articles

Technology Budgeting for the Law Office: A Overview

Expenditures on technology are among the most significant, and variable, face by those responsible for legal organization budgeting. The demand for technology dollars is based on the fact that technological change has come do quickly and on so many fronts, with the effect that it is increasingly difficult to perform legal work on a credible, competitive, perhaps even competent basis without a sound technical foundation.

As always, the question of funding is key. How does the organization decide what resources are most valuable to the practice? What factors must the organization consider in budgeting for technology so as to gain practical advantage, while minimizing the amount spent on under-used technology? This article will provide a framework for decision-making as to technologies on which funds should be, or might be, expended in order to best prepare budgets. While the circumstances of legal organization are too varied to support cost figures, and any such costs would be quickly outdated, focus on most useful and practical functions will enhance the use of budget funds under any circumstances.

The first item your firm should consider is core plumbing of computer systems represented by networking. The network has no substantive function, but rather glues together the various individual stations used by persons to permit the sharing of information, such as documents or data files, and useful devices such as printers or scanners. If your firm is larger than one attorney, you should strongly consider networking to obtain these efficiencies.

Most firms are already networked at some level. From a budgeting standpoint, the key question arises as to when to 'upgrade', i..e., when to spend more on enhancing the network. While this is a very individualized decision (relating to, e.g., questions such as 'when do we become too slow' and 'when do we need to buy more software to be fully licensed), it is highly recommended that the organization stay within the mainstream, that is, to not fall more than a major version behind the current operating version of whatever 'operating system' (Novell, Windows NT, etc.) is current. Falling much further behind is a sure means of spending unintended funds on incompatibilities and other operating difficulties, especially as most manufacturers of both systems, hardware and software prepare their current offerings for the more recent environments. While this, to some extent, represents planned obsolescence on the part of the computer industry, its force is compelling at the firm / organization level. Dollars can be saved in this upgrade process by paying close attention to standard and periodic upgrade offers from the manufacturers.

In this and other areas, funds should be budgeted for training. You will need someone onsite who understands the basic functions of the network, and will need at least periodic and emergency access to someone with serious expertise in networking technology. Investment in serious and ongoing training will pay serious dividends in disaster avoidance and recovery, and greater productivity and efficiency on the part of the legal professional and staff.

Word processing and time & billing software are fundamental to the operation of the modern law office. Every office should use word processing, and almost every office should use at least some form of time / billing / client management program. While issues with respect to the selection of such software are beyond the scope of this article, the general principle of staying with a relatively recent version applies to these categories of application programs.

3. Remote Access Communications

The organization should strongly consider supporting 'remote access' to its systems. This is an area where reasonable functionality can be obtained for a few hundred dollars through the use of software based solutions, or high levels of functionality through hardware-based communication servers (providing remote functionality almost as if the user were actually local) for several thousand dollars, depending on the needs and budget of the organization. The organization may also wish to start on the low end, with the notion that, as usage grows and traffic demands, a more capable and expensive solution will be considered.

The principle of experimenting and learning through less expensive means, then growing into the more capable but expensive items, is generally sound, particularly with respect to technical matters. Care should be given that, even at the low end, the technology is established in a sound manner, and not implemented in a patchwork or hard to use manner. In that regard, even with respect to installation of relatively inexpensive software, funds should be allocated to provide technical assistance in order to avoid lost time and frustration as inexperienced personnel attempt to perform technical tasks for which they are untrained and not well suited.

4. E-Mail

A part of the electronic communications family, universal e-mail is a requirement for the modern practitioner. There are a wide range of choices, with advantages to each, ranging from a simple America Online account to sophisticated onsite mail servers. As a rule, unless the firm is technically sophisticated in electronic communications, it is best to leave the Internet plumbing in this regard to specialized services; a full-service e-mail account with an 'Internet provider', usually in conjunction with Internet access, is the best choice for most firms. There are numerous levels of service; as a general rule, faster is more expensive, but superior. The best policy may be to select the 'price point', that is, the level of service with the most perceived mainstream value for the dollar expended. 'ISDN' service, delivering information at speeds roughly four times that of a 28KB modem, is widely believed to represent the price point at the current time.

The increasing pool of legal research, governmental, general research and other information on the Internet's World Wide Web make access a must. Again, the principles set forth with respect to e-mail apply; faster is better, but basic 28KB service from a standard Internet provider is adequate. You should, however, be certain to include at least basic service to every desktop as part of the budget plan.

Research is a major component of the practice of most firms. There are a wide variety of resources available on CD's, in many cases supporting less expensive and more capable research than that provided by traditional books, and less expensive research than that provided by online services. For this reason, the firm should strongly consider acquisition of CD capability.

CD's may be utilized through the CD readers which are installed in most new PC's. The firm may also wish to consider, however, the value of a CD tower attached to its network. Under that strategy, commonly used CD's are always loaded and available to all linked desktops, substantially enhancing the practical capability of sharing the scarce research resources which they represent.

The firm can then study its research profile to determine the most effective and economical mix of traditional online, CD's and Internet resources.

There are any number of other items which may add functionality and efficiency to the practice for which budgeting may be necessary. These include:

• Network-based dictation
• Scanners and 'optical character recognition' devices.
• Network-based fax capabilities.

Planning and analysis as to which of the various items on which monies may be expended will be an ongoing and increasingly complex part of the operation of the legal organization over time. A progressive but incremental approach will benefit the work of the firm by bringing the efficiencies of automation while minimizing negative impacts. Continued budgeting for, and support of, training will help insure that purchased technology is used in a wise and increasingly knowledgeable manner, to the benefit of the organization and its clients.