We recommend that you define KPIs based on data entry and output to highlight performance and effort. An example of this would be the introduction of a chatbot that answers routine legal questions that were previously handled manually. If 100% of these requests were processed manually five years ago (input) and you find that the chatbot answers 80% of these questions today (output), this provides a clear measure of the tool`s performance. One question that the Advocate General is thinking about a lot is whether.” Is my legal department well structured to meet the needs of the company? The question usually arises when the Advocate General takes office; if there is a structural change in the business (such as an acquisition); there are complaints about the service; There is a major crisis or failure where the department has not functioned as intended. Regardless of the structure under which you work, there are a few “must-haves” to ensure cohesion and mitigate possible negative aspects. Recently, attention has shifted to defining and streamlining the most valuable core processes of the legal function. Many companies standardize how and when the company should request legal involvement, for example by using decision trees or other common processes. To improve transparency and engage in discussions with executives, we recommend that a legal department understand and categorize the business activities that are driving the legal workload, such as drafting business contracts and preparing investment decisions (Figure 2). The Advocate General may use this assessment for different applications. Here are some examples: Organizational structure considerations for a smaller legal department may be based on regions, lines of business or expertise. Legal processes typically include both supporting processes that include administrative work such as archiving and expense management, and core processes for managing specific legal issues.
When it comes to hiring, developing and retaining top talent, corporate legal departments must compete with law firms and the public sector, even though many law graduates do not consider in-house positions to be their first choice (Figure 5). Many rightly believe that promotions within a legal department can be rare. Increasingly, mid- and senior-level positions are now filled by lawyers in private practice. This mostly one-sided traffic from private practice to industry means that many qualified individuals can compete for an open position, making it increasingly difficult for in-house lawyers to climb the ladder. New forms of collaboration, increased litigation funding and technological advances are changing the legal ecosystem. For example, technological advances are increasing the volume of data to be processed, enabling remote work arrangements, requiring new security measures, and adding technological capabilities to the Department`s talent needs. While lawyers can often be risk-averse when it comes to technology, legal technology can play a crucial role in supporting legal operations. Today`s legal technology market is somewhat fragmented and dominated by point solutions that only meet certain needs or subsets of people and do not necessarily communicate well with other systems. In the future, however, legal services technology is evolving towards more holistic solutions that are better integrated into the company`s broader technology infrastructure.
A good legal department structuring will help guide your department from juggling limited resources to maximize all resources. With the right structure, your team can focus on the work that positions your department as a valuable strategic business partner, and the information you provide can inform decision-making. The best structure for the legal function varies greatly by company and industry, and should focus not only on the tasks, but also on the risks and opportunities facing the organization as a whole. This broader context should influence structural decisions such as the size of the legal team, how and where lawyers are deployed, and whether to open or close local legal services in specific locations. It is also essential to define the right governance and controls to ensure that the business model works as intended. While lawyers are challenged to do more with less at a time when regulatory and financial risks are increasing, they must also manage the increasing internal control exercised by boards and senior management over how they are managed and operated. The legal function is no longer seen as a black box, free of performance management concerns. Like other functions, successful legal teams are likely to be the ones that demonstrate how they improve efficiency and create value. Many companies with a global presence are facing new waves of litigation filed by professional litigators who have developed sophisticated strategies to advance their lawsuits, including choosing jurisdiction and using online marketing to reach potential plaintiffs. This trend is accelerated by the growth of the litigation finance industry, which now has more than $11 billion to fund claims globally (Figure 4).
Many litigators welcome funding because it covers their legal costs, allowing for predictability and potentially a fungible business portfolio. Applicants opt for financing solutions because they offer immediate risk relief and legal fees in exchange for certain upward limits. Strong business generalists or experienced lawyers who report to the General Counsel`s office and see companies as their lawyer, with specialists “behind the curtain,” can be an effective structure. It is always important to coordinate and ensure that everyone works as one unit, especially with specialist lawyers. When it comes to obtaining legal services internally, externally and automatically, we recommend a strategic approach – again, based on tasks and risks. For example, artificial intelligence can speed up the process of creating legal documents using automated search, translation, document creation, and pre-fill tools. Today`s machine-reading algorithms can also review thousands of documents in minutes, freeing lawyers from repetitive, low-value tasks and freeing them up for high-quality analysis and advice. These and other new solutions can help legal counsel overcome capacity constraints.