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It’s difficult to attend any legal conference these days without hearing about technology and change, but it’s refreshing to discuss these topics with people who actually do the work. Recently, I moderated a panel for an ARK (Applied Research & Knowledge) conference, “The New Spectrum of Legal Services,” in Chicago. Our focus was the evolving role and pressures on legal operations and in-house counsel. Panelists covered technology adoption, partnerships with law firms and information technology departments, plus their future strategic priorities.
So, what are the biggest pressures faced by in-house legal departments? Here are five key issues the panelists identified.
1. More with less. Three of every four dollars spent on legal services is corporate money per industry data cited by presenters. And the global business mantra of cutting budgets while demanding more has hit in-house departments across all industries. Technology is often viewed as the solution. However, a culture that embraces change, including in its processes, is required to make headway with efficiency.
2. Cybersecurity risks. These days it’s not if your company will be breached, but when. Of course, a breach can be defined differently by each company but the need for a plan and mitigation strategy is critical — and growing with the “‘internet of things” explosion.
3. The overwhelming amount of data. This refers to more than just data for e-discovery or legal holds. Overall data and knowledge management has become a pain point for most companies due to sheer volume. If official systems are not implemented, there can be rogue systems or shadow IT that contribute to inefficiency and, in some cases, chaos.
4. Technology implementation. These massive undertakings require cross-department coordination plus project and change management skills. In response, more companies are creating legal operations functions and hiring non-lawyers who are skilled in procurement and systems implementation.
5. Role as business advisor. The general counsel is part of the management team, responsible for strategic initiatives as well as key metrics. The complexity of the role has expanded with technology advances and cybersecurity threats, but increased measuring, monitoring and reporting has put new pressure on GCs — even in private companies.
For law firms, these challenges present tremendous opportunities to partner with clients to solve problems together using technology and other new approaches — even when that may mean less revenue. For example, one panelist described how their employment law firm created a self-help portal for the company’s employees, which ultimately reduced the spend with that firm but locked them in as the company’s only employment firm.
A follow-up panel focused on client-driven change, and how law firms can rise to the challenge. Panelists shared tips for developing stronger relationships with clients. Some key pointers:
Today, it’s about building relationships and creating partnerships rather than tossing an RFP response over a wall and hoping for the best. Challenge your law firm to bring more creative solutions to the table.
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Jay Harrington's 10 steps to your best business game.March 19, 2019 0 0 0