In the fast-paced corporate world, we know that in-house legal departments are under constant pressure to do more with less. Balancing risk mitigation and defending the enterprise, while acting as proactive business partners and managing divisional business aspects while remaining innovative may seem like an impossible task. However, by shifting the focus from merely “doing more with less” to “doing more, smarter,” the strategic potential of utilizing a functional Legal Operations practice can be unlocked. This shift involves better utilizing these professional possibilities to their fullest, allowing teams to better add necessary resources with strategic finesse.
The Strategic Value of Legal Operations
Legal Operations, when deployed effectively within the legal function, can be a strategic asset. However, many in-house teams have struggled to utilize Legal Operations properly, often relegating it to back-office administrative roles, expanded paralegal duties, or technology project management. The challenge is often not the existence of Legal Operations but the way it is utilized. Before you cut your Legal Operations department resources, look at how they’ve been structured – you may have a business superhero waiting in your wings.
Optimizing Legal Operations Structure
Legal Operations can take on different structures based on organization size, structure and industry. In many cases, Legal Operations functions as a shadow IT department focused on implementing and managing a legal tech stack separate from the enterprise technology stack. This approach can limit its strategic value and undermines it potential effectiveness.
Integrating Legal Tech with Enterprise IT Strategy
To maximize the effectiveness of technology-focused Legal Operations, it’s crucial to integrate the legal tech stack with the broader IT strategy. This includes:
- Data Security: Ensuring legal tech tools meet enterprise standards for security certifications and data ownership preferences.
- Vendor Relationships: Aligning with IT's vendor preferences, including ethics and diversity goals.
- Long-term planning: Coordinating legal tech deployment with the enterprise's long-term technology roadmap.
This integration ensures that legal technology investments are aligned with enterprise goals, extending their lifespan and enhancing their value. It also builds strategic trust between Legal Operations and IT, reducing the burden on Chief Legal Officers and General Counsels. A strategically minded, IT focused Legal Operations professional will always be aware of the priorities of the enterprise IT team and its long-term goals.
Expanding the Role of Legal Operations
While technology is a significant part of Legal Operations, its role should not be limited to this niche. Viewing Legal Operations holistically, akin to other operational leaders, places the business aspects of in-house legal within its purview. This approach allows the head of Legal Operations to act as a true business partner, connecting the strategic focus of the legal team with the broader enterprise goals.
Be cognizant that they don’t get pushed into a back-office administration role; it is easy for operations professionals to get stuck sorting out the weeds, especially those who come from task and deliverable-mindsets derived from paralegal and administrative work.
As Legal Operations is often more centrally positioned within the organizational hierarchy, it has a close relationship with other business stakeholders. This positions them to more acutely understand the working mechanisms of the organization and what can be done to meet business needs. Equipped with knowledge of the CLO’s strategy, the daily work of the legal teamand the needs of business stakeholders, a skilled Legal Operations leader can optimize processes and solve problems effectively. This allows lawyers to focus on practicing law while operational professionals handle the enabling aspects.
Strategic Benefits of Legal Operations
A strategic Legal Operations function can lead to:
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Cost-Effectiveness: Achieving long-term
cost savings in a traditionally cost-centered environment by using tools, processes and people optimally and ensuring the business of in-house legal is dialed-in. -
Stakeholder Engagement: Enhancing connections with internal stakeholders to be the ultimate problem solver and business partner.
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Reputational Excellence: Improving the organization’s reputation for effective legal operations both internally and externally - no more “black box” or “department of no."
Optimizing the utilization and strategic alignment of Legal Operations frees up legal professionals to focus on their core responsibilities, thereby increasing their productivity and overall value to the organization. Before considering reductions or cuts to Legal Operations, it’s essential to evaluate its current utilization and explore opportunities to uncover and enhance its strategic impact.
By rethinking the role of Legal Operations and leveraging it as a strategic force, in-house legal teams can achieve greater efficiency, effectiveness and alignment with enterprise objectives. This not only enhances the legal function but also contributes to the broader success of the organization.
Published August 22, 2024.