Lawyers and the wrong 7% solution

From the latest issue of Charles Christian‘s excellent Legal IT Insider:

The 7% Solution. According to a report in The Lawyer magazine, the UK’s Top 200 law firms are now spending 7% of turnover on occupancy – and these costs are heading up, year on year. This is in contrast to the average of 4-to-4.5% they spend on technology, a situation that prompted the well-known American legal tech commentator Ron Friedmann to remark: “For Big Law to be spending almost twice as much on occupancy as on tech sends clients the signal that law firms favour opulence over efficiency.”

In other words, the legal marketplace remains backward in its approach to technology, progress, and efficiency. And if that’s the situation in the UK – which is probably mirrored in the USA –  you can imagine what it’s like in Israel.

If you are in business, and want to ruffle the feathers of your favorite big firm lawyer, ask what the percentage spend is on these items. And then ask why.

The Legal IT Insider website is here.