Legal Ops Software: How CLM Helps Legal Ops Functions Achieve Maturity

Legal Ops is the efficiency central point of the department. While internal counsel is focused on securing business from risks through contract review, Legal Operations is responsible for making legal processes more efficient and cost-effective. The Legal Ops function helps in-house counsel by providing them with practical expertise such as vendor management, acquisition and evaluation of technology, and strategic planning. Additionally, the Legal Ops software helps make it happen.

In the past few decades, the legal sector has made a concerted effort to improve the image of the in-house legal teams, infamous for being an expense center and an office with a reputation of “no.” The Legal Ops function has brought in technology that has improved process efficiency and standardized metrics so that legal teams could make a more strategic business unit, contributing to the revenue targets.

Contract Lifecycle Management (CLM) software allows Legal Ops teams to efficiently perform their job and control one of the most demanding elements of the law process operating contracts.

Legal Ops in Modern Businesses

Because of the advancements in the area, the legal department can do more with less effort due to Legal Ops. Legal Ops has grown in the spotlight and recognition because of the actions of the Corporate Legal Operations Consortium ( CLOC), which has established the function of legal ops in the last ten years or so.

While legal teams are known for being far behind in technological developments, incorporating the legal operations Legal Ops function into the modern legal department has helped accelerate the acquisition of technology and software. In the end, we are seeing significant advancements in legal technology for every aspect of the legal process, including e-discovery and contract analytics, Knowledge management, electronic billing, and the management of contracts.

In contrast to in-house counsel, who is focused on the present, Legal Ops anticipates challenges and can find solutions. With more and more companies adopting the Legal Ops function, their proficiency level depends on how closely they follow The CLOC The Core 12.

CLOC Core 12

The CLOC’s core 12 defines the specific areas of operation which Legal Ops teams need to be able to master to ensure operational success. This model of competency will outline the areas of concern for legal teams and provide new solutions that will change the way that legal departments offer legal services. Legal Ops teams can utilize them to reach operational maturity and enhance the legal function in general overall.

It isn’t easy to perform these functions right at the start, particularly for a newly formed department conducting hiring and other strategic decisions. It isn’t something to be done in a single go but instead planned out and planned out. With these guidelines as a guide, r task will become more complex as you progress. 

Although contracts aren’t explicitly listed as part of the Core 12 model, they can significantly affect the legal department’s performance. Legal teams rely on contracts. Effective knowledge management programs are another precise business intelligence, and directing legal programs reqrequiresll-managed contract documents that can be centrally managed and accessible across the company. CLM should be a key component in Legal Ops’ software stack.

Below are five ways contract management can aid Legal Ops in improving their function

Provides business intelligence

Highly successful companies utilize data to make critical decision-making. FroData is the central element in all business strategies. U, from hiring decisions to forecasting and budgetingnfortunately, most legal teams are not equipped with the proper technology process, infrastructure, and processes to manage and track information properly.

Additionally, contracts include much of the essentialness-related information, i.e., who you deal with, the average value of contracts, and the number of contracts executed each period or per year. This information can help you establish benchmarks of performance that assess the efficiency of Legal Ops programs and help point Legal in the right direction.

With CLMs, CLM is a way for your team to access critical data that could assist them in making better choices. Additionally, suppose your CLM integrates with other data systems throughout the company. In that case, it allows you to access more exrobust, more robust data sets and improves cross-functional alignment, which was previously a challenge for departments like the Legal department.

Assists in firm and vendor management

It is typical for legal teams to be smaller. According to the Legal Dive, the average number of members in an internal legal staff is six persons, which is more significant for larger firms with more significant revenues. Whatever the size of the team, the legal team will constantly interact with external counsel and vendors in some manner.

Law firms work according to billable hours. As a result, their charges could result in a higher cost than initially anticipated. If they are not proadequatelynaged, they can quickly increase. If you don’t keep an eye on not just the expense of legal service providers but also the quality of their performance in their duties, you could find yourself spending more than you should and not receiving the promised return.

CLM will help you monitor obligations and create measures to evaluate the performance of your outside counsel and vendor. Furthermore, CLM provides robust contact information that will help you establish benchmarks and keep track of developments in your department, empowering Legal Ops to make smarter decisions when working with other law firms (ALSPs) and yet still be successful.

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