What is Enterprise Legal Management?
Enterprise Legal Management
Enterprise Legal Management is the practice management and operations strategy for corporate legal departments. It’s also a term for the group of technologies that make those operations possible.
Enterprise Legal Management encompasses the many components necessary to successfully run Legal Operations and fully integrate Legal as a strategic partner for the rest of the business. It includes:
Legal Matter Management
Faced with the challenge of managing thousands of new legal matters every year, from both internal and external sources, corporate legal teams recognized that managing this process manually isn’t an option anymore.
Not only do they need automation and control throughout a matter’s lifecycle, legal teams need a centralized source to manage the routine processes of opening matters, managing workflow and running reports.
Matter management involves managing all activities surrounding corporate legal practice.
How does it help? By:
- Reducing time and effort to open new matters. By automating matter opening, using templates and creating standardized processes, this software reduces the time it takes to open a new matter from 60 minutes to 15 minutes.
- Establishing a central location for all matters. With a single source of truth in place, legal can ensure a complete and accurate database, which can later house comprehensive analytics to identify trends and proactively mitigate risk.
- Managing costs – proactively. By centralizing matter data and increasing their visibility into matters, legal teams can better manage matter workloads and costs, saving 1.5% per year in external legal spend.
Legal Spend Management
If your legal department outsources any work to outside counsel firms, then legal spend management is an absolute must-have to control costs, manage firm selection and engagement, and understand the true value being delivered by creating visibility into the trade-offs between cost and outcomes. Not to mention gain foresight into budgeting and future spend to improve the predictability of department results.
In essence, spend management is a management discipline that is concerned with giving corporate legal departments oversight of their outside counsel spend – and other legal costs.
Here are just a few of the benefits of legal spend management software:
- Reduce legal spend and enforce billing guidelines
- Reduce time spent processing and approving invoices
- Track and report matter budgets by time period/matter phase and improve forecast accuracy
- Automate the audit trail of bill modifications, including approvals, reviews, adjustments and rejections
- Optimize firm and timekeeper selection through visibility and reporting
- Realize a 5-10% reduction in annual legal spend
When done poorly, contract management can cause your company to miss deals because it can’t move quickly enough, lag behind competitors, and struggle to onboard much-needed vendors.
Effective contract management, on the other hand, can cut through red tape, protect revenue, respond quickly to opportunities, and drive the legal department forward at the modern speed of business – which is to say, faster every day.
Simply put, contract management is the management of contracts from vendors, partners, clients and any other partnerships throughout their lifecycle.
Benefits of effective contract management include:
- Cuts the time it takes to execute contracts
- Standardizes processes and automatically enforces compliance
- Provides a central hub for all things contract-related
- Assigns tasks, sends automated email reminders, tracks contract completion
- Creates dynamic, repeatable templates and maintains version control
- Delivers a consistent process for outsourcing to outside counsel
Reporting and Analytics
If you don’t have the right reporting and analytics tools for driving actionable insights and value from Legal Operations, chances are high you will fall behind your competitors that do.
Why? Several leading Legal departments have already driven competitive advantage for their companies through using data to:
- Gain access to new patents and new markets faster than their competitors
- Complete mergers, acquisitions and contracts more rapidly and at lower cost
- Save hundreds of thousands, if not millions of dollars from cutting costs and improving efficiencies unlocked by data in their Legal department
- Review outside counsel selection based on evaluating costs and outcomes
Reporting and analytics are one essential piece for making sure your legal management and legal operations are on the right side of history.