Gartner recently published their Market Guide for Enterprise Legal Management (ELM). The Market Guide is a simplified version of their typical Magic Quadrant that has historically rated ELM vendors that can support a majority of the core capabilities based on the market definition.
Why is it important to have an ELM solution? As the Market Guide points out: “As more legal work shifts from law firms to in-house counsel, leveraging spreadsheets or homegrown solutions is no longer a viable solution as they cannot meet the needs of enterprise legal management for compliance and risk obligations”. This is further proven in our newest whitepaper Catching the Wave: Legal Technology Spend at $3 Billion and Growing. Now more than ever before, General Counsels (GCs) are being asked to run their departments more efficiently while at the same time they have more responsibility and more pressure to remain on budget. More often than not, legal departments are being viewed as a key strategic partner of the business. The corporate or government legal team is becoming fully integrated into the business, increasingly aligned to goals and business objectives, as well as equipped and expert enough to respond to those needs to achieve desired business outcomes.
An enterprise legal management solution can create enormous value for the legal department. Mitratech’s vision of ELM is to provide technology that creates user benefit by simplifying daily tasks and integration with the systems that legal professionals use the most. This in turn drives technology adoption, meaning the entire staff is inputting data and information into the solution and a single source of truth is established for the department. Once that is secured, complete visibility over legal operations is reached, enabling the General Counsel to make informed business decisions. This enhances the perception across the organization that legal is a strategic business partner.
At a more granular level, the specific benefits that Mitratech’s solutions brings to organizations are a reduction of legal spend, an increase in operational efficiencies, and a reduction in organizational risk. These save an average of 5-10% in legal spend and 5-10% in time savings each year as validated by a client-developed ROI model:
- Reduced legal spend – examples include an optimization of the mix of outside counsel selected to reduce costs, the enforcement of billing guidelines, a reduction in duplicate payments and an increased awareness of guidelines for outside counsel which generates greater scrutiny before invoices are submitted.
- Increased operational efficiencies – examples include a reduction in the effort to open and manage matters and their related budgets, generation of reporting and analysis, creation and management of legal documents, management of court deadlines, the review and approval of invoices, compliance with industry and government regulations, streamlined contract collaboration with non-legal groups, and an overall improvement in end user productivity due to integration and navigation benefits.
- Reduced organizational risk – examples of these benefits include a reduction in fraudulent claim payouts, lowered costs through proactive disclosure of policy violations, and regulatory non-compliance incidents. Increased visibility across the organization can also speed up corporate response which protects company revenue. If a single incident is avoided altogether due to early assessment and response, the savings are almost immeasurable.
Higher stakes and expanded responsibilities continue to put greater demands on corporate and government legal departments. In addition to managing complex legal matters, the General Counsel is also accountable for helping to proactively build and protect the organization. As Gartner estimates, “the current adoption rate is at about 20%” for those who have adopted an enterprise legal management solution. For all of these reasons, it’s imperative that corporations and government legal departments implement the right ELM solution.