5 Ways Legal Operations Drive Business Efficiency

What Are Legal Operations?

The role of legal operations is to bring efficiency and cost savings to legal departments through automation, process improvements, and better infrastructure. But legal ops extend beyond legal teams—they create value across the entire business by making workflows more efficient and productive. Legal ops professionals are reshaping how companies function, saving time and resources while driving growth.

Unlike traditional legal roles focused on providing legal advice, legal operations run like a business. The focus is on streamlining processes, leveraging data analytics, improving efficiencies, and aligning with company goals.

Why Legal Ops Are Crucial for Business Success

Legal operations have become indispensable in modern organizations. While “legal ops” is a relatively new term, the concept of ensuring efficient, compliant legal functions has long been essential. Inefficiencies in legal processes can slow down business operations, increase risks, create interdepartmental friction, and hinder opportunities for growth.

A significant force in the legal ops space is the Corporate Legal Operations Consortium (CLOC), established in 2010. CLOC has redefined legal business practices, emphasizing the strategic importance of legal operations globally. Legal ops teams vary in size and structure across regions, with larger teams often based in the U.S.

CLOC’s 12 Core Competencies Model outlines key legal operations functions, including:

• Financial Management
• Vendor Management
• Technology Management
• Data Analytics

Despite their importance, these competencies are rarely taught in law schools, requiring legal professionals to develop them independently.

Five Areas Where Legal Ops Increase Business Efficiency

1. Documentation and Legal Document Management

Legal operations streamline legal document management by centralizing all contracts and agreements in one accessible location. This ensures easy monitoring, quick responses to information requests, and compliance. Legal ops professionals often implement document management systems that:

• Archive documents securely for future reference
• Enhance visibility across all departments, including commercial and legal teams
• Provide analytics to inform financial decisions

These systems can also allow finance teams to generate insights related to vendor relationships, negotiations, and client fee structures, ultimately optimizing workflows.

2. Ensuring Compliance

Legal ops professionals play a vital role in maintaining regulatory compliance. They implement tools and processes to monitor evolving legal requirements, ensuring the organization stays compliant with industry standards. By taking a strategic, organized approach to compliance, they help reduce risks and protect the company from legal pitfalls. Key benefits of a legal ops team in ensuring compliance include:

• Establishing and managing automated compliance tracking systems
• Regularly updating and auditing terms, privacy policies, and contractual conditions
• Proactively identifying and mitigating legal risks through enhanced process visibility and oversight

3. Financial and Budget Management

Legal operations significantly influence budget management by identifying legal risks and supporting data-driven financial decisions. Legal ops systems centralize document approvals, enabling stakeholders to review and approve documents efficiently. Benefits include:

• Improved collaboration with finance teams
• Reduced paperwork and minimized errors
• Streamlined financial processes through integrated software

4. Strategic Planning

Legal ops professionals act as strategic partners across departments, using evidence-based insights to improve business performance. They develop roadmaps for operational enhancements and help set achievable goals by:

• Analyzing historical data to forecast project costs
• Identifying key performance indicators (KPIs)
• Aligning legal strategies with long-term company objectives

5. Legal Tech Solutions Implementation

Traditionally, legal departments have been slow to adopt technology. Legal operations bridge this gap by integrating legal tech solutions that automate and optimize legal processes. Examples include:

• Contract Lifecycle Management (CLM) systems that automate contract drafting and approvals
• Automated templates and workflows to streamline legal reviews
• User-friendly tools that empower commercial teams while allowing legal teams to focus on high-value work

Legal ops ensure that as organizations grow, legal teams remain agile and focused on strategic initiatives.

The Value of Legal Operations in Business Transformation

Legal operations are pivotal in driving efficiency and strategic value within organizations. By automating legal processes and leveraging data insights, legal ops professionals enable legal teams to contribute meaningfully to digital transformation efforts.

Investing in legal operations not only enhances workflow efficiency but also empowers legal departments to align with broader business goals, ensuring long-term success.

Frequently Asked Questions About Legal Operations

What is the role of legal operations in a company?

Legal operations focus on streamlining legal and business processes, reducing costs, and aligning legal functions with overall company goals.

How can legal ops improve business efficiency?

Legal ops enhance efficiency by automating manual tasks, improving data visibility, and optimizing workflows across departments.

What are the core competencies of legal operations?

Key competencies include financial management, vendor management, technology management, and data analytics.