The results of this year`s survey also highlight some areas where LDO professionals have expanded their sphere of influence. Consider contract management, one of the most common processes where legal departments provide support and value to the rest of the business. In the pre-execution phase, internal consultants review contracts, usually for ongoing sales or procurement transactions. And once executed, contract management is one of the areas where the company`s legal department supports ongoing enterprise-wide risk mitigation by understanding contract terms or through key initiatives such as M&A activities. Approximately 57% of survey respondents stated that they wanted to update, evaluate or plan to update, evaluate or plan the implementation of contract technology before and after execution. Deloitte can help you assess your legal department`s position on the maturity scale with an in-depth analysis of your people, processes and technology. By centralizing and analyzing key data points, you gain insights into developing a legal transformation strategy, prioritizing opportunities for improvement, and promoting adoption by key stakeholders and teams. Our information gathering, workshops and analysis of your legal operations landscape can help you scale your legal department at a pace tailored to your needs. We present insights that will help you identify and analyze key operational areas, identify short-term ROI opportunities, and discuss areas of interest for legal strategic objectives. Another evidence of an outward orientation is that LDO professionals have significant interactions in areas that go beyond the legal department. When asked how often they contribute to cross-functional objectives such as a contract management program that includes both procurement and law, 73% of respondents frequently or very frequently reported a slight increase of 70% in 2020. And more than half of respondents (52.5%) are very frequently or frequently involved in strategic initiatives across the enterprise, defined as those outside the legal department.
That`s a 44% increase last year. What will the future of corporate law look like as in-house lawyers become more strategic business partners? While this may be different in any organization, legal departments should start by developing their vision for the future – and strategies to achieve it. The pandemic has forced businesses to mitigate the risks associated with business disruption, respond quickly to the range of legal demands that had arisen, and adapt to new work arrangements. After more than a year of demonstrating resilience, the results show that managing, executing and monitoring work can be challenging, but are important drivers on the road to modernization. One survey respondent explained, “The strategic initiative for the company is to work faster, smarter and bolder. Perhaps the best proof of this is the ranking of the survey participants` key performance indicators (KPIs). They ranked “business value” as the second most important and “customer/customer feedback” as the third, behind “actual spending relative to the total budget of the legal department.” 1Our survey questions are designed to provide an overview of current practices in order to assess the performance of high-level legal operations in the identified CLOC space. cloc.org/what-is-legal-operations/ As COVID-19 accelerates the pace of change, executives are signaling an increase in workload but describing the way forward, citing both increased investment in technology and greater reliance on other legal service providers as likely responses to current conditions. In this survey of 131 legal directors and senior executives in legal and compliance services, we look at the challenges ahead, the most pressing issues for the legal department, and even the positives of the office`s response to COVID-19.
A new type of lawyer for the modern economy These answers illustrate an LDO function that has developed beyond internal projects. On the contrary, these professionals lead projects that go beyond the legal department and become a crucial point of contact within the legal department in terms of other functions. In fact, survey respondents were asked if they communicated at least once a week with the following characteristics: 68% of respondents reported contacting the conference room; 98% with IT; 95% with financial resources; and 75% with HR. This focus on their time is another reason why so many members of the LDO function are turning to legal fee management tools. Just over 28% of legal departments surveyed want to update, evaluate or implement this type of technology, in addition to the 17% of respondents who said they already have these tools in their technology stack. In fact, 74% of the companies surveyed` legal departments collect data from their e-invoicing systems. The LDO feature can use this information to reduce costs. The Legal Department`s 14th Annual Operations Survey shows that the legal operations function is no longer just about providing efficiency and strategic value to the company`s legal department itself. On the contrary, the operations function of the legal department (LDO) in many companies is evolving to help legal departments deliver more value to many different areas of their organization.
As LDO`s teams and professionals have grown in depth and maturity, they are taking a more outward-looking approach to increasing the value they provide to their businesses as a whole. While the scope of the LDO profession extends beyond the company`s legal department, there is still much to be done to deliver. For example, only 68% of survey respondents regularly collect feedback from internal customers. Chief Legal Officers (CLOs) and Chief Compliance Officers (COOs) are broadening their strategic openness to lead issues where trust is critical, first focusing on cybersecurity and ESG strategy as they drive transformation initiatives. This is the main finding of our survey of 217 legal and compliance leaders about the challenges and opportunities they may face next year. In an unprecedented year, corporate legal services have been put to the test as they weathered many STORMS related to COVID-19. Resource and budget constraints, as well as a lack of technical skills, have been cited as the biggest challenges for legal services over the past year, as many businesses work largely from home. This year`s results underscore that LDO`s demanding professionals are no longer expected to add value within the company`s legal department. Instead, they look outward to create added value throughout the company. They ensure their position as key players in the legal department and also play a role in the company`s ecosystem that will ensure that their legal department is not left behind. Another important way that the company`s legal departments provide direct value to the company is to reduce expenses that can be used to identify and mitigate additional risks or to realize shareholder value through careful external advice and supplier management. Here, the operations function also adds invaluable support and insights by focusing on cost savings.
LDO experts surveyed spend 26% of their time on cost savings, cost efficiency, cost management, external consulting management and supplier management. It is indicative of a function with so many other responsibilities and tasks. Deloitte`s Legal Services offers a full range of legal management advisory services and technology-supported legal management services to help legal professionals and others increase the value of the legal department. Contact us to find out how we can help you transform your legal department and its operations into a strategic value driver. The results of the 2022 Strategic Survey on the CLO and CCO Strategy have been saved Deloitte`s 2021 Survey on the State of Legal Operations – composed of legal frameworks representing 81 companies in five sectors – shows that legal leaders continue to struggle to get the right sizing and procurement, with lawyers taking on too much administrative work, which represents an increase of 11% year-on-year. Almost all legal frameworks surveyed (91%) agree that it is time to modernize the way legal services are delivered, up 10% from last year. In July and August 2020, several months after COVID-19, Deloitte conducted a survey of CIOs to see how the day-to-day work and strategy of the legal department is affected. The workload has increased as legal services address a variety of pandemic-related issues while actively participating in business continuity and cybersecurity efforts. *Deloitte`s U.S.
law firms do not practice law or provide legal advice. If legal leaders aspire to become strategic business partners, what are the topics that come to the fore as they begin or continue their journey of modernization? The LDO feature also carefully tracks contract management measures in a more strategic way than just working on clauses and other elements of the contract. When asked about the most valuable measures they follow regarding CLM, survey respondents cited the time and value of the contract – both outward-looking – as two of the top four. (Tracking companies and third-party paper ended up in fourth place.) In the past, our surveys have used information from an average participant base of approximately 100 legal operations professionals from different industries in organizations of different sizes and maturities. Conducted from July 28 to August 13, 2020 to understand how legal services are responding to COVID-19 and potential future impacts; 131 survey participants, including General Counsel, Chief Compliance Officers and Senior Legal Officers.