Introduction
Legal departments find themselves at a critical juncture in an era marked by unrelenting change. The landscape of law and business is evolving at an unparalleled pace, demanding adaptability and innovation. While this may appear as a cause for concern, it presents a remarkable opportunity for the legal department to recalibrate its strategies and proactively prioritise innovation.
One such method for increasing productivity and restoring innovation was decentralisation. Further, many top executives, including CEOs and CFOs, favour a layout where lawyers work alongside business teams, believing this decentralised approach improves financial performance. In this newsletter, we outline strategies that make legal departments future-proof and robust. From remote services from top attorneys and paralegals to data analytics and digital collaboration tools, here are ways for legal departments to adapt to the changing legal landscape.
Let’s take a closer look!
Current changes in the legal market
The legal landscape is transforming rapidly, driven by evolving client expectations, globalisation, technological advancements, and changing work dynamics.
Talent Challenges
Legal departments are seeing different effects of the evolution in the legal landscape, such as the changing employee expectations, which has become one of their biggest concerns.
Legal departments strive to bring all the possible solutions for their clients irrespective of the dispute sectors. However, to maintain the quality of their work, these legal departments find it difficult to recruit such specialized talents and professionals.
Client-lawyer relationships
Another shifting aspect is customer demand for tech-enabled legal firms. This reached a new peak in 2022 and is anticipated to rise further. Only 52% and 41% of legal departments in 2021 and 2020, respectively, reported that they considered detailing the technologies they employed to be more productive and efficient. Today, that figure has risen to 70%, expected to reach 97% by 2025.
Clients are also expecting more services at a lower rate. The development of affordable DIY legal services is one of the main reasons clients demand low legal fees. Legal entities show clear online pricing, cutting expenses to compete and reducing a firm’s profitability.
5 ways to future-proof legal department
Utilising technology to gather and analyse relevant data
The rapid evolution of technology has instigated profound transformations in the operational landscape of legal departments. In 2022, significant traction was made in analytics-related technology: 60% of law departments indicated implementing a legal data analytics tool, and 26% indicated using artificial intelligence for at least one use case. Law firms are compelled to adapt to these changes and leverage technology to elevate their operations, safeguard their organisation’s interests, and uphold their ethical responsibilities.
Such examples are to employ project management software for efficient task allocation and budget management. Contract management platforms for automating contract processes and expediting the contract lifecycle. E-discovery tools to simplify the review of voluminous electronic data in litigation.
Also, collaboration with external parties can be streamlined through e-billing platforms and communication tools. Data analytics platforms offer valuable risk assessment, decision-making, and resource optimisation insights. In negotiating contracts, technology aids in identifying unfavourable terms and conditions.
Incorporation of legal matter management
Legal matter management software is a versatile tool designed to efficiently handle various legal operations, encompassing case types, attorney assignments, document management, calendars, budgets, expenses, and billing. Adopting such software yields substantial benefits for legal firms, ensuring streamlined operations, enhanced client service, and improved overall efficiency. For example, big firms reported a usage rate of 62% and smaller firms with a usage rate of 30-35% concerning the legal case management system.
One of its pivotal advantages is digitised information management, enabling comprehensive client data storage and organisation. This empowers firms to access and quantify critical information in a digitised format, facilitating efficient cross-departmental access while saving valuable time.
Centralised Matter Management ensures secure, synchronised access to confidential information within the organisation, eliminating the need for multiple tools and optimising workflow. Client service is significantly bolstered through rapid issue resolution, as paralegal agents can promptly access and retrieve all relevant case details, providing quick solutions without the need for constant client follow-ups.
Client-centric approach
A client-centric strategy is the foundation of any legal firm’s future-proofing. Creating outstanding client experiences is critical for maintaining and gaining new clients as clients grow more demanding. Understanding the needs of clients, preferences, and dispute spots is critical for efficiently providing legal services.
Encourage customer input to find areas for development and show a commitment to continual improvement. Implement open communication channels to keep clients informed of the status of their cases as soon as possible. Using social media platforms and online reviews to improve your firm’s reputation and trust with prospective clients might also assist.
Upskilling the legal professionals
Upskilling in technology will equip legal professionals with the agility to adapt to rapidly evolving client demands and industry trends. It allows law firms to deliver legal solutions with greater precision and speed, fostering client trust and satisfaction. In an increasingly competitive legal landscape, where clients expect cost-effective and tech-savvy legal services, investing in the continuous learning and technological prowess of legal talent is not just a strategic choice but a necessity for law firms aiming to thrive and remain at the forefront of the legal industry.
Have backend support from national/international talent
Law firms today increasingly recognise the value of robust backend support from a pool of national and international legal talent. This enables law firms to tackle diverse legal matters with the assistance of seasoned lawyers, offering several advantages.
Access to a network of legal professionals across various jurisdictions and specialisations enhances a law firm’s agility and flexibility. They can quickly assemble a team with the precise expertise required for a specific case, ensuring the best possible representation for their clients. Additionally, this backend support enables law firms to manage fluctuating workloads efficiently. It also extends its reach into global markets, allowing it to serve clients with cross-border legal needs effectively.
In sum, integrating national and international legal talent into law firm operations empowers firms to provide comprehensive, high-quality legal services, positioning them competitively in today’s dynamic legal landscape.
Accessibility to resources for legal professionals
The pandemic demonstrated that many businesses could function very well with remote personnel. And, considering that demand for office space is down 46% from its average in 2018-2019, it’s clear that firms (and workers) are still hesitant to embrace conventional office life completely.
Hence, for the convenience of the lawyers and the accessibility to clients, law firms should revamp their remote work policies for the employees, which will also help in the quality of work for the firms. Mixed work cultures are quickly becoming the norm. If your company can still be productive while working from home a few days a week (or remote, if that’s the case)—ensure that your workplace has the technology to flourish in this setting. This entails using technology such as cloud-based case management software, which your personnel can use from anywhere and on any device as long as they have an internet connection. It entails giving customers the choice of meeting in person or online using Zoom or another video communication tool. However, if your workplace has become nothing more than a storage facility for printed papers and outdated coffee beans, it may be time to consider terminating your lease.
Cultivate the growing environment
Develop an innovative and continuous learning culture among your team members. Encourage your attorneys and employees to attend conferences, seminars, and webinars to keep up with industry trends and developing technology. Encourage multidisciplinary cooperation within your organisation to foster the sharing of ideas and viewpoints. Adopt a growth mentality that promotes adaptation and open-mindedness, allowing your team to accept change and handle uncertainty boldly.
How will Legamart help you future proof your legal department?
Legamart, a leading legal service platform, empowers your legal department for sustained success. Our platform connects you with a diverse network of legal experts, from seasoned lawyers to proficient paralegals, ensuring readiness for diverse client needs and expanding workloads. Embracing remote work, our virtual communication tools ensure seamless operations.
Legamart connects you with a vast network of legal experts, from seasoned lawyers to proficient paralegals, ensuring your team is well-equipped to cater to diverse client needs and expanding workloads.
Conclusion
It is evident that adaptation and innovation are the cornerstones of success in today’s legal landscape. Legal professionals and law firms must embrace change, upskill in technology, and foster client-centric approaches to thrive amidst uncertainty. Legamart stands ready to empower you on this journey, providing access to top legal talent, facilitating technology integration, and supporting flexibility in work culture. We aid in enhancing your brand presence and fostering a community of growth and learning.
The future of legal departments hinges on resilience, versatility, and a commitment to excellence. With Legamart as your partner, you are well-equipped to meet the evolving demands of the legal market, ensuring your place at the forefront of this dynamic industry.
