Effective Ways to Improve Workflow Efficiency in Legal Departments

Legal departments are being increasingly recognized as an integral part of companies and organizations all over the world. In 2015, data showed that 61 percent of companies have at least one person handling legal operations. However, over the years, the average size of organizational legal teams has increased, and a recent survey of more than 420 legal departments found that the median number of team members is six. Larger companies with more considerable revenues are found to have even bigger legal teams, with one company with more than $20 billion in revenue employing 98 individuals for their legal department.

In-house legal work has become more complicated and demanding, which is why so many companies have been beefing up their legal teams to handle the department's various areas of focus. Although many companies continue to hire staff to take on specialized roles, it's also important to have flexible solutions to boost workflow efficiency. This can help employees make fewer errors and improve productivity in the long run. Here are some effective ways to improve workflow efficiency in legal departments.

Outsource Tasks

Many companies have been outsourcing repetitive or time-consuming tasks for years, and legal departments are doing the same in a practice known as legal process outsourcing or LPO. Outsourcing tasks to a company that provides LPO services enable your legal team to cut expenses while getting the additional tech support or admin assistance they need. LPO providers usually offer services such as litigation support, contract drafting, e-discovery, compliance assistance, and review management. Since so many legal teams worldwide have outsourced tasks to LPOs, the LPO market is projected to be valued at $117.89 billion by 2030.

Your legal department can choose to outsource to on-shore or offshore providers, depending on the service or task to be outsourced. Some of the top companies offering LPO services are in the United States, South America, India, England, Canada, and the Philippines. Outsourcing process-oriented work to LPOs is recommended, especially if you choose to work with an offshore provider. However, your legal team may also tap specialized LPO providers to do more complex tasks, such as contract drafting or legal research, as long as your team provides their staff with sufficient training.

Aside from legal departments, law firms have also started outsourcing specific tasks to manage costs and increase their revenue. According to experts at Law Firm Velocity, some of law firms' most frequently outsourced functions include bookkeeping and CFO services and client trust accounting. If you own a law firm, outsourcing these tasks may be a good idea since it can help you increase your profit margins and forecast your future needs to boost your firm's growth.

Consolidate Information

Legal teams should find a way to manage and share information with colleagues from other departments who need it. One of the best ways to do so is by consolidating all information in one place. Doing so lets you and your co-workers easily retrieve archived and current information or access documents without sifting through digital or physical files or sending multiple emails to get the information. According to a recent study, legal professionals spend up to 11 hours every week looking for documents in a traditional filing system. Keeping records in an old-fashioned filing cabinet can lead to misplaced or lost files, which may even result in a costly mistake for your department.

Consider consolidating everything in legal document management software instead of storing files in a physical filing system. This type of software not only helps legal teams and everyone else in the company to have easy access to documents, but it can also place restrictions on specific files to protect sensitive data. The software can also log activity records so that your legal team will know which departments or employees accessed certain documents.

Software Tools to Automate Tasks

Automating legal workflow can benefit your legal team in various ways. For instance, it allows your team to focus on more valuable aspects of legal work instead of wasting time doing repetitive and tedious tasks. Recent data reveals that 63 percent of in-house legal work is repeatable and doesn't need human judgment or interpretation. By automating specific workflow processes, legal teams can prioritize making direct contact with their clients, which can improve their quality of service. Automation can also minimize human errors and enhance collaboration and communication since some tools can share documents and track progress on cases or tasks.

Many industries have been automating tasks for years, but there has been some pushback on automating legal processes due to the risks associated with being overdependent on technology. Apart from losing human skills, there's also the perceived risk of losing personal touch and weakening the bond between lawyers and clients. More importantly, since automated systems rely on sensitive data to operate, there's the risk of legal departments and law firms becoming the target of cyberattacks. However, as long as only redundant tasks are automated and strict measures are taken to protect confidential data from being leaked or unlawfully accessed, your legal team can rest easy, knowing that automation can be an advantage for your overall productivity and work quality.

Improve Communication

Corporate legal teams are viewed as the protectors of a business since they help companies to operate in a compliant and ethical manner. However, while most employees acknowledge their legal department's positive contribution to their sales and revenue, they also believe that legal team members should improve their ability to maintain and sustain positive relationships within the company. In a recent survey, it was found that most corporate employees in HR, Finance, Sales, Marketing, IT, and Procurement departments across the US, UK, Germany and France believe that the quality of their interactions with their legal department has declined. These employees also view their legal teams as slow to respond.

To improve communication and responsiveness, organize activities such as a monthly lunch or an event where other employees can ask legal department members questions and share relevant feedback. You can also implement a contract management system and use specialized software to streamline the contract approval and signing process between departments.

Create a Positive Work Culture

Your legal department may be equipped with all the latest technology to streamline work processes. Still, it's important to remember that a well-defined and positive work culture can also play an essential role in guiding the team so everyone can be more efficient. However, workflow efficiency can be achieved by following and simplifying the processes to complete a case; having a solid team dynamic can empower team members to come up with solutions to solve challenges they may encounter along the way. Being able to come up with creative and innovative solutions to resolve legal issues is something that no app, machine, or piece of technology can do, so creating a healthy and positive work culture should be a priority of all legal teams.

Several strategies can help strengthen the work culture in a law firm or legal department. One of the most effective ways is to support team members by investing in their health and wellness. Offer benefits that will enhance their physical health, such as discounts or reimbursements on gym memberships or exercise classes. You can also offer medical benefits like discounts on physical check-ups and dental procedures.

Investing in your legal team's mental wellness is a must, too. Keep in mind that the legal profession can be a highly demanding and mentally taxing field, and it's why mental health issues are so prevalent in legal professionals. In fact, studies show that lawyers and those who work in legal professions are more prone to depression and anxiety than the general population. Giving your team mental care perks such as access to mental health resources and flexible work schedules can help retain top talent and show them that you value their contribution to the company or firm. Also, allow your team to work part-time, remotely, or hybrid to improve their work-life balance. Your legal team should be encouraged to spend time with their loved ones and look after their well-being since these can help them to feel empowered, stay engaged, and be happier at work. Legal teams are an essential part of every business organization. Consider these tips to improve workflow efficiency for maximum productivity and profit and to foster better working relationships with other departments.

Conclusion

Improving workflow efficiency in legal departments is essential for keeping up with the ever-increasing demands of modern businesses. Legal teams can save time and reduce costly errors by streamlining processes through outsourcing, automation, and consolidating information. This enables them to concentrate on high-value assignments requiring legal knowledge and critical thought. These tactics also boost output, guaranteeing that the legal department can efficiently handle the expanding demands of the business.

Additionally, cultivating a healthy work culture and enhancing communication inside and across legal team departments can improve collaboration and overall success. When legal professionals feel mentally and physically supported, they are more engaged and motivated, which translates into better performance and innovation. A well-structured, efficient legal department is a cornerstone of any thriving organization, ensuring compliance, reducing risks, and contributing to long-term profitability.