Based in the Metropolitan Region of Santiago, WD Abogados or Asesorías e Inversiones WD Limitada is a Chilean law firm providing specialised legal services, mainly in tax and judicial matters.
Assessing the relevance of digital tools to address scaleup challenges and external economic pressures: The case of a Chilean law firm
Abstract
Founding partners Ricardo Warnier Oyaneder and Gonzalo de la Cerda Otto decided to start their own law firm in 2013. Initially specialised in tax and criminal matters and composed of three workers, the firm has now taken on other areas of development such as civil, commercial, corporate, labour and real estate. The W&D abogados now has 15 employees and 2 fee-earners, making up an interdisciplinary team of specialist lawyers.
W&D Abogados faced challenges as they began to scale-up. Scalers greatly contribute to job generation in OECD countries. In Finland, Italy, Portugal, the Slovak Republic and Spain they represent but 13 to 15% of SMEs, however, between 2015 and 2017, they were responsible for 47% to 69% of new jobs created by non-micro-SMEs (OECD, 2022[1]). W&D abogados started out as a micro enterprise composed of three employees and as the firm grew, they had to manage growing workloads, management challenges related to coordinating teams and billings whilst continuing to search for new business opportunities.
Inflation is a concern for their business as it negatively affects investment and growth possibilities. Furthermore, and as inflation rises, salaries must rise accordingly and the company must take on these costs, with the aggravating factor that they cannot be passed on in full or automatically to the end consumer.
WD abogados employees use a range of digital tools on a daily basis, ranging from application that allows employees to use their mobile phones as an access key to the office to an electronic signature software for the digital presentation of written pleadings in trials:
A digital management and control system whereby employees download an application that allows them to use their mobile phones as an access key for the building. They can also link their license plate to the application to have barriers open automatically.
Microsoft Word, communication software such as email for internal and external communication as well as videoconferencing software for meetings.
Remote access, control and support software when teleworking.
A storage server managed by an external party to securely store and access their files.
An electronic invoicing software for the automated processing of their financial documents.
An advanced electronic signature software for the digital presentation of writs in trials following the amendment in 2015 of the Code of Civil Procedure to establish the digital processing of judicial proceedings.
They used to have a programme to monitor the completion of tasks and hours worked by employees, but they discontinued it as it was very time consuming for lawyers to update this information.
To address these challenges, W&D abogados has endeavoured to take on these higher costs as a company by trying to maintain and increase sales, with positive results so far.
The implementation of digital technologies in their daily business operation have increased the firm’s efficiency. Teleworking is advantageous as it allows the firm to save office space and reduce overheads such as rental cost of office space. Teleworking is perceived as a viable alternative in the case of emergencies or when needing to operate remotely, as was the case during the pandemic. However, these tools are complementary to face-to-face work, as working in-person allows for more efficient teamwork, coordination and real-time project management tracking.
Digital tools could be better implemented to manage day-to-day administration more efficiently (supplies, payment of bills, staff, etc.) and allow partners to focus on more productive tasks.
Although W&D Abogados considered making use of digital advertising to attract new customers, the firms found that as legal services rely on trust and reputation, digital advertising could negatively impact the firm’s profile.
W&D Abogados has not participated in any government (national or local) programmes and is unaware if there are initiatives that could be relevant to them.
OECD (2021), The Digital Transformation of SMEs, OECD Studies on SMEs and Entrepreneurship, https://dx.doi.org/10.1787/bdb9256a-en.
OECD (2021), SME Digitalisation to Build Back Better, https://doi.org/10.1787/f493861e-en
References
[1] OECD (2022), Financing Growth and Turning Data into Business: Helping SMEs Scale Up, OECD Studies on SMEs and Entrepreneurship, OECD Publishing, Paris, https://doi.org/10.1787/81c738f0-en.
