The Legal Operations Advantage: Unlocking Opportunities for Growth and Improvement

The key to success in today's competitive business environment is staying ahead of the curve and being informed about the latest trends and best practices.

We are facing new challenges in maintaining our competitive edge and meeting the demands for updated and optimized processes.

By understanding the challenges multinational organizations face when managing legal resources and implementing #legaloperations strategies, companies can improve their performance, control costs, and unlock new opportunities for growth and improvement on a global scale.

Legal operations, also known as LO or #legalops , is an expanding area that can assist organizations in addressing obstacles and uncovering new potentials for growth and progression.

This article will explore the functions of #LO managers, how they can be organized within a function and the benefits that legal operations bring to multinational businesses.

By exploring these topics, this article aims to demonstrate how LO can unlock new opportunities for improvement in your departments.

Unlocking Opportunities for Growth: The Rise of Legal Operations

• Why are Legal Operations becoming a must-have for legal departments Explanation of the growing demand
• What are the core functions of a Legal Operations Manager?

In today's business landscape, operational management is a crucial aspect of all MBA programs.

This is evident in the growing demand for experts in this field, as demonstrated by recruitment resources in the United States.

According to a 2020 report by Thomson Reuters, 81 % of Legal & Compliance departments now have a legal operations function, up from 57% in 2019.

LO managers are at the helm of numerous responsibilities, from organizing and optimizing internal operations to overseeing financial management.

They can also manage projects and programs, develop service delivery models, establish legal knowledge management processes, generate business intelligence reports, maintain legal department technology systems, coordinate billing with external advisers as well as monitor legal spending metrics.

With all this in mind it is no surprise why a LO manager plays an integral role within any organization.

The focus of LO is to optimize the Legal & Compliance department's workflow and make it more effective, viable, and forward-thinking. In order to do this successfully, LO managers work together with both internal legal teams as well as external business associates to pinpoint potential areas for improvement and promote development through advances in technology, data analysis toolsets, plus process reengineering.

As the role of Legal & Compliance Officers continues to grow, it is becoming essential for organizations to have them on board.

Better understanding the purpose and objectives of LOs can help companies optimize their Legal & Compliance department's performance, leading to incredible opportunities for success.

Legal Operations: A Closer Look at the Role and Responsibilities

• What do Legal Operations look in detail?
• How does Gartner's study add to the functions of the Legal Operations Manager?

A LO manager is responsible for a wide range of activities that support the overall functioning of a Legal & Compliance department.

These activities include:

• Strategic Planning:?working with legal and business teams to develop and implement strategic plans that align with the organization's overall goals and objectives.
• Service Delivery Models:?overseeing the development and implementing of service delivery models that optimize the department's resources and improve efficiency.
• Financial management:?managing the department's budget, ensuring that resources are allocated effectively, and controlling expenses.
• Project and Program Management:?overseeing projects and programs critical to the function's success.
• Vendor Management:?managing relationships with external firms and vendors, including contract negotiation and performance management.
• Practice Operations:?working with team members to optimize the department's processes and procedures to improve performance.
• Organization Optimization:?optimizing organizational structure.
• Business Intelligence and Information Governance:?ensuring that the Legal & Compliance department has access to the right data and information to make informed decisions.
• Knowledge Management:?ensuring that the function has the knowledge and expertise necessary to meet the organization's needs, organizing it, and sharing expertise outside the function.
• Technology:?ensuring that it has the technology and tools necessary to be successful.

According to Gartner's 2020 Legal Operations Maturity Model survey report, LO roles are becoming increasingly important.

The survey reported that Legal Ops managers were now involved in many aspects of work functioning such as process improvement initiatives (61%), developing or implementing technology solutions (60%), driving organizational change (58%) and leveraging data analytics (54%).

These roles require a deep understanding of the organization’s needs along with the ability to develop strategies for incorporating new technologies into existing processes.

Additionally, they must be adept at managing relationships with external firms or vendors while also remaining attuned to changes in the business climate.

By taking a holistic view of the organization’s needs they create efficiencies which allow for more time spent on higher-value tasks such as client services or proactively addressing potential risks or issues before they arise.

Structuring Legal Operations: Which is Right for Your Company

• How can Legal Operations be structured within a legal department?
• What are the pros and cons of each structure option?
• What does the current practice of organizing Legal Operations look like?

Legal operations functionality can be implemented in several formats within a function.

One option is to fully perform the function by the head of the department.

Another option is to disperse operational management functions among several employees, transferring each area of responsibility.

The third option is to separate LO into a dedicated structural unit with one or several employees.

Each of these options has its advantages and disadvantages.

For example, having the head of the department fully perform the LO function allows for a clear alignment of strategic goals and a centralized approach to decision-making.

However, this approach can also lead to a lack of expertise and resources dedicated solely to legal operations.

On the other hand, dispersing the functions of operational management among several employees of the function allows for specialization and the sharing of knowledge.

Still, it can also lead to confusion and a lack of accountability.

Finally, separating LOs into a dedicated structural unit can provide a focus on these tasks.

But, on the other hand, it can also lead to disconnection from the rest of the department.

Therefore, it is important to evaluate an organization's specific needs and weigh each option's pros and cons before deciding on the best approach to organizing legal operations.

Researching current trends reveals that only a tiny fraction of companies doesn’t carry out operational management duties. Busylamp's survey calculated this portion at approximately 3-4%.

In the US, 25% of corporate structures have legal operations delegated among lawyers.

Big enterprises generally maintain an average of 14 operational managers in their legal functions while small organizations tend to possess half as many with 2 on board.

Companies from the #pharmaceutical and #biotechnology sectors take the lead when it comes to identifying the right headcount required for optimal functioning.

In contrast, the fewest operational legal managers can be observed in companies from heavy industries.

It is worth noting that different industries and organizations may have different needs and, therefore, may choose different approaches to organizing legal operations.

Therefore, companies need to evaluate their specific needs and select the approach that best suits them.

Benefits of Legal Operations in Multinational Organizations

• What are the main challenges multinational organizations face when managing legal resources?
• How can Legal Operations help improve communication and efficiencies between international teams?
• How can Legal Operations specifically benefit clients' data management, case tracking systems, and automation of administrative tasks?

Global organizations are often confronted with the difficulty of proficiently leveraging their legal resources and sustaining a steady workflow throughout various jurisdictions.

These challenges include:

• Coordinating communication and decision-making among international teams:?It can be difficult for legal teams in different locations to stay informed about legal matters that affect the organization.

This can lead to delays, misunderstandings, and inconsistencies in legal processes and procedures.

• Managing compliance with different laws and regulations:?Organizations with a global presence must comply with the laws and regulations of each country or region in which they operate.

This can be a daunting task, as the laws and regulations can vary widely from one location to another.

• Ensuring consistency in legal processes and procedures:?Without a centralized approach to legal operations, teams in different locations may develop their processes and procedures.

This can lead to inconsistencies and inefficiencies, making it challenging to ensure that legal matters are handled effectively across the organization.

• Managing legal costs and controlling legal spending:?outside counsel fees can quickly spiral out of control in large organizations that have a global presence.

LOs can help organizations identify and control costs, find cost-effective solutions and help to make the most of legal spending.

Legal operations can improve efficiency and communication between international teams by providing a centralized platform for managing legal resources.

This includes establishing standard processes and procedures, providing training and support to legal teams in different jurisdictions, and implementing technology and tools to support collaboration and communication.

Some more specific benefits of legal operations in multinational organizations also include:

• Client data management:?LO managers can help ensure that client data is accurate, up-to-date, and accessible to legal teams in different jurisdictions.
• Case tracking systems (CMS):?LO managers can help implement case tracking systems that provide real-time visibility into legal cases' status and support effective legal resource management.
• Automating administrative tasks:?LO managers can help automate repetitive and time-consuming tasks such as document generation, contract review processes, and other administrative activities.

This allows legal teams to focus on more complex and value-added activities.

In conclusion, legal operations is a powerful function that can help organizations unlock new opportunities for growth and improvement.

It's time for Heads of Legal & Compliance to take the lead and implement them as a way to streamline their processes, increase efficiency, and focus on the most important tasks.

By doing so, they can unlock the full potential of your legal department and drive success for their organization.

Take advantage of this opportunity to take your legal department to the next level.

Invest in legal operations today.