From Cost to Profit: How Technology Can Help Corporate Legal Departments Support the Larger Business
Published on :
19/04/2023
19
April
Apr
04
2023
Legal departments are often seen as a necessary cost center in a company, and the question of their value is often raised, especially when they are not seen as "revenue-generating." However, the legal department's role in any organization goes beyond just ensuring compliance with the law.
What role does the legal department play?
The legal department plays a critical role in managing risk, protecting the company's reputation, and contributing to the company's overall success.
The most obvious way that legal departments justify their existence is by minimizing the company's exposure to legal risks.
- This involves identifying and addressing legal issues before they become full-blown legal problems. Legal departments help companies navigate complex legal landscapes and ensure compliance with laws and regulations.
- They also help companies understand the legal implications of their actions, such as when they enter into contracts or pursue new business opportunities.
All of this helps the company reduce costs. By identifying and addressing legal issues early on, legal departments can prevent expensive legal disputes from arising. They can also negotiate more favorable contracts and settlements, which can save the company money in the long run.
Legal departments also help protect the company's reputation.
A single legal issue can significantly impact a company's brand and reputation. Legal departments work to prevent these issues from arising and to manage them effectively if they do occur. This can involve crisis management, media relations, and other strategies to protect the company's image.The legal Department provides legal guidance
The corporate legal department not only ensures the company's long-term success when facing outside legal threats but by providing legal guidance and advice to other departments within the company. For example, legal departments can provide training on legal issues to employees, which can help them avoid legal risks and make informed decisions. They can also help other departments navigate legal issues, such as employment law, and ensure that their actions comply with applicable laws and regulations.All of these efforts by the legal department contribute to the company's overall strategic objectives. They can help enter new markets, negotiate complex deals, and protect valuable intellectual property. They can also help companies understand the legal implications of emerging technologies and trends, such as data privacy and cybersecurity.
And what about innovation?
Finally, legal departments can also help companies innovate. This may seem like an unusual role for a legal department, but it is becoming increasingly important in today's business environment.Legal departments can help companies understand the legal implications of emerging technologies and trends, such as artificial intelligence and blockchain. They can also help companies navigate legal issues related to intellectual property and other areas that are critical to innovation.
And speaking of innovation, the addition of technology within the legal department itself can often be a key component in helping them pivot from being cost centers to becoming profit centers.
Corporate legal departments can generate revenue by adding technology in several ways, including:
Automating routine tasks
One of the biggest ways that technology can help generate revenue for corporate legal departments is by automating routine and time-consuming tasks. By using artificial intelligence (AI) and machine learning (ML) tools, legal departments can automate tasks such as contract review and drafting, legal research, and eDiscovery. This can help save time and resources, allowing lawyers to focus on higher-value work that generates revenue.
Improving efficiency
Technology can also help improve the efficiency of corporate legal departments. By streamlining workflows and reducing the time it takes to complete tasks, technology can help legal teams handle more work in less time, which can help increase revenue.
Enhancing data analysis
Technology can help corporate legal departments analyze data more effectively, which can help identify patterns and trends that can be used to generate revenue. For example, data analysis tools can help identify areas where the company is vulnerable to legal risks, allowing legal teams to proactively address those risks and prevent legal issues from arising.
Providing better client service
By leveraging technology to provide better client service, corporate legal departments can attract and retain more clients, which can help generate revenue. For example, by using client portals and online communication tools, legal teams can provide clients with real-time updates on their cases and streamline communication.
Reducing costs
To conclude, technology can help corporate legal departments reduce costs, which can indirectly help generate revenue. By reducing the need for manual labor and improving efficiency, legal teams can save money on staffing and other expenses, which can be reinvested in revenue-generating activities.Legal departments play a critical role in any organization, and their value goes beyond just ensuring compliance with the law.
Overall, legal departments help:
- Managing risk,
- Protecting the company's reputation,
- Supporting strategic objectives,
- Ensuring long-term success,
- Saving money,
- Promoting innovation.
While they may not be "revenue-generating" in the traditional sense, legal departments are essential to a company's overall success. By understanding the critical role of legal departments, companies can ensure they receive the support and resources they need to thrive in today's complex business environment.
History
-
From Cost to Profit: How Technology Can Help Corporate Legal Departments Support the Larger Business
Published on : 19/04/2023 19 April Apr 04 2023BlogArticlesLegal departments are often seen as a necessary cost center in a company, a...
-
When IT convinces Legal to Buy A Software. But How Does it Work?
Published on : 13/03/2023 13 March Mar 03 2023BlogThe IT department is usually involved in the decision-making process regard...
-
Does IT understand the GOALS of Legal When Recommending Technology?
Published on : 07/03/2023 07 March Mar 03 2023BlogWhen it comes to procurement, the IT department often has a lot of say in w...
-
Septeo French Tech reference recorded 310 million euros revenues up to 30% compared to 2021 and joins top 10 software players in France
Published on : 24/02/2023 24 February Feb 02 2023Press Release2022 Key figures for Septeo's growth CA 310M€ up 30% between 2021 and...
-
Legal Suite wins a $2.6M contract with Quebec's Ministry of Justice
Published on : 18/01/2023 18 January Jan 01 2023ArticlesPress ReleaseAs a leader in legal file management, we are pleased to announce that Justi...
-
Overcoming Barriers to Legal Technology Adoption
Published on : 20/12/2022 20 December Dec 12 2022BlogIt is well-documented that upgrading legal technology can improve efficiencie...
-
Measure Legal Technology Return on Investment
Published on : 16/11/2022 16 November Nov 11 2022BlogArticlesHow to be a better steward of your legal office resources At its core, inves...
-
Why Retention of Knowledge and Increasing Employee Satisfaction is Essential to Future Profitability
Published on : 03/10/2022 03 October Oct 10 2022EventsWebinarsDon't miss our newest Webinar hosted by Joan Elizabeth Fox presented to you...
-
Rendez-vous à la 8ème édition du Sommet du droit en Entreprise le 29 juin 2022
Published on : 22/06/2022 22 June Jun 06 2022testVenez à notre rencontre pour la 8ème édition du Sommet du droit en Entrepri...