How to build a tech-first law firm: Insights from Peter Ambrose   

In episode 15 of the Empowering Law Firm Leaders podcast, Peter Ambrose, founder and CEO of The Partnership and Legalito, discusses the critical elements of building a tech-first law firm, the importance of failing fast, and the benefits of legal technology.

Peter, who has built his own tech-first firm, shares his journey, the importance of a tech-first approach, and valuable lessons for modern law firms.

In this conversation we cover:

• Three essential lessons to running a successful modern law firm
• The importance of accountability
• Benefits of adopting a ‘fail fast’ mindset
• The role of technology in risk management
• Where to start on your digital transformation journey

Three lessons learnt that are critical to running a successful modern law firm

Peter Ambrose shares three essential lessons that have been pivotal in his journey to building a successful modern law firm:

1. Understand and manage risk: Peter emphasises the importance of understanding and managing risk. He believes that complacency is detrimental and that law firm leaders must face potential issues head-on. “Understand risk, face it down,” he advises. By identifying where problems might arise and proactively addressing them, firms can mitigate potential threats and operate more smoothly.
2. Protect your people: Protecting employees is a cornerstone of Peter’s leadership philosophy. He notes that many law firm owners fail to truly understand the importance of safeguarding their staff. “Not enough law firm owners understand the importance of protecting people and pay lip service to it,” he says. Ensuring that employees feel supported and valued not only boosts morale but also enhances overall firm performance.
3. Commit to continuous improvement: Peter advocates for a relentless pursuit of improvement. He encourages law firms to adopt a mindset of always striving to do better. “Whatever you’re doing today, accept that it’s okay, but you’ve got to do better,” he asserts. This commitment to continuous improvement helps firms stay competitive and responsive to changing market conditions and client needs.

The importance of accountability and availability

Peter attributes much of his success to his hands-on approach and accountability. “I don’t sit in an ivory tower,” he says. “You’ve got to be in it with your colleagues. You can’t lock yourself away and say, ‘I’m too important for that problem.'”

This approach extends to dealing with clients and ensuring that issues are addressed promptly. “If you make a mistake, tell someone,” he insists. “There’s nothing worse than sticking it in the bottom drawer and hoping it’ll go away. It never goes away.”

Peter also emphasises the importance of humility and shared responsibility. “Everyone does the binding,” he says, referring to the practice of assembling documents. “We’re never too big. We’re never too important to do that.” This philosophy ensures that all team members, regardless of their position, contribute to the firm’s success.

When it comes to areas for improvement, Peter acknowledges that prioritisation is a challenge. “It’s a historic issue,” he admits. “When you’ve been involved in doing everything, working out what you should do and what you shouldn’t do is quite difficult.” While he is good at delegating tasks he doesn’t understand, such as conveyancing, he recognises the need to improve his prioritisation skills.

While planning is important, Peter believes that over-planning can be counterproductive. “Over planning is a waste of time. I’ve never been a big fan of huge amounts of planning,” he says. Instead, he advocates for a more flexible approach that allows the firm to adapt quickly to unexpected changes. “Changes come unexpected. You can’t complain about it. I get tired of people that complain about change. If you can’t deal with change in today’s market, then you’ve got no right to be running a business.”

The role of technology in risk management

For Peter, the primary driver for implementing new technology is risk reduction. “Always start with risk reduction,” he emphasises. “Where can we go wrong, and what can we put in place to make sure we don’t go wrong?” This focus on risk management has led to significant improvements in efficiency and accuracy at The Partnership.

He highlights the importance of eliminating the human element in tasks that are prone to errors, such as rekeying information. “Stop the human element of rekeying, because that’s where the risk lies, because that’s where the mistakes are made,” he says. By focusing on reducing risks, law firms can also achieve greater efficiencies and productivity as a natural consequence.

Peter Ambrose believes that an unsung benefit of technology in law firms is its ability to support lawyers by providing them with the data they need to defend themselves against client accusations. He explains that clients can often be hostile and make accusations about delays or mistakes. Technology can help lawyers by offering clear, disarming data that shows the actual timeline and actions taken.

Peter states, “If you provide that data to the lawyer that you can see, for example, that the client didn’t return their paperwork for three weeks… it’s really disarming. And it’s a great defense mechanism for lawyers.” This capability not only helps in defending against accusations but also reduces stress for lawyers, as they have concrete information to back up their actions.

He emphasises that this benefit is often overlooked but is crucial for maintaining lawyer confidence and ensuring efficient handling of complaints. This use of technology helps protect employees and supports a more transparent and accountable working environment.

Advice for law firms looking to embrace technology

Peter offers practical advice for law firms looking to become more tech-focused.

1. Continually explore new solutions

Peter notes that many law firm owners understand the need for change but often fail to allocate the necessary time to investigate and implement new technologies. “Take 20 minutes to look at new solutions, and don’t wait for the perfect event,” he suggests. This approach encourages law firms to be proactive and open to exploring new tools and systems.

2. Start small

Rather than attempting a complete overhaul of existing systems, Peter recommends starting with point solutions—specific tools designed to address particular problems. “Look at point solutions. Big Bang doesn’t work,” he asserts. By focusing on individual areas that need improvement, firms can implement changes more smoothly and with less disruption.

3. Trial and error

Peter advocates for a trial-and-error approach to implementing new technology. “Try it out. Fail fast. If it doesn’t work, bin it quickly,” he advises. This mindset allows firms to experiment with different solutions and quickly discard those that do not meet their needs.

4. Listen to your people

“Listen to your people. They quite often have good experiences,” he notes. By involving staff in the decision-making process and considering their input, firms can make more informed choices about which technologies to adopt.

5. Focus on risk reduction

Peter believes that the primary driver for implementing new technology should be risk reduction. “Always start with risk reduction,” he emphasises. By identifying areas where mistakes are likely to occur and implementing technology to mitigate these risks, firms can improve efficiency and accuracy.

6. Measure success beyond ROI

While return on investment (ROI) is a common metric for evaluating new technology, Peter suggests looking beyond financial gains. “A lot of this is emotional decisions,” he explains. He advises firms to consider whether a new tool makes life easier for employees and improves overall efficiency. “Does it save me time? Is that time measurable?” he asks, highlighting the importance of practical benefits over purely financial metrics.

Harness technology for sustainable success

Building a tech-first law firm requires a combination of the right mindset, continuous improvement, failing fast and should always focus on risk management. By embracing technology and fostering a culture of accountability and respect, law firms can position themselves for success in the modern legal landscape. Peter Ambrose’s journey and insights provide valuable lessons for any law firm looking to thrive in the digital age.

Watch the full interview with Peter Ambrose now to discover more advice and guidance on building a tech-first law firm. You’ll also hear Peter’s exclusive advice on becoming a more agile law firm and hear further lessons learnt from his own journey to building The Partnership to a team of 85.