Today, we’re bringing you a special guest post from the folks at Legal Gateway, who are looking at the changing legal industry. In-house lawyers: this one’s for you, but it’s equally essential for our outside counsel readers to dive into this one. This was originally published on Plexus.

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“As CEOs plan their strategies to take advantage of transformational shifts,” the consultancy PWC suggests in their annual survey of CEOs “they are assessing their current capabilities – and finding that everything is fair game for reinvention.”  Most legal functions continue to cling outdated operating models with no transformation plan. They do so at their peril.

Imagine for a moment you run a hospital.  You find that infection rates in the community you serve are rising exponentially, yet the vast majority of patients aren’t seeking treatment because your wait times are too long.  Your staff are disengaged and buried with less critical cases and you are unlikely to see any increase in budget or headcount to help manage the risk.
Not surprisingly three-quarters of patients you’re treating are dissatisfied with the service they receive.

But now this is not a hospital, it is a legal function, and while it may not be life and death, the data below shows the parallels of this analogy.

  • 71% of GCs forecast Legal Risk will rise over the next two years;
  • 91% of GCs forecast legal workload will continue to rise;
  • Only 31% of middle managers used the legal function when they last had a problem;
  • In a survey of 16,000 end clients only 26% were satisfied with the value the legal function provides; and
  • Less than a quarter expect any budgetary increases – while an increasing number forecast decreases.

To put it simply, it’s time to change. 


We see two camps emerging in the In-house community. The clear majority (let’s call them Base Camp) cling to an increasingly outdated playbook that simply reads ‘we do as much legal work as possible, and try to negotiate better deals with traditional law firms or get more budget’.

A second set (let’s call them Summit Camp) have begun to pursue a groundbreaking agenda to meaningfully transform the way they provide legal services.

Base Camp’s annual offsite runs to a familiar tune.  Everyone complains about too much work, not enough resources, poor precedents, clients who don’t ‘get’ Legal and law firms who are out of touch.

They all agree that they need to push back on the business more, to make a business case for more headcount, to update their precedents, to spend more time explaining legal principles and risks to the business and to hold their law firms to account.  Everyone feels better for a bit, there is hope…until nothing changes …and they find themselves at another offsite the next year having the same conversation.

Part of the challenge is that while 77% of legal functions rate ‘innovation’ as highly important to their future success, only 10% rate themselves as highly effective at it.

Summit camp is thinking differently.  They know the secret is to focus all your energy not on criticising the old, but on building the new.  They have launched a strategy based on a whole new playbook:

  • They are increasing investment in Legal Automation technology like Promotion Wizard and our Plexus’ Legal Gateway platform, by 254% in the next two years
  • They are many times more likely to use performance measurement to understand the nature of their work – and make more informed decisions about the what, how and who of legal work
  • They have consciously ring-fenced 25% of their time to focus on advancing the transformation agenda
  • They recognise that New Law is no longer the fringe of legal services, it is the future
  • They are shifting their talent selection and development from the ‘core’ technical legal skills (e.g. drafting) to the ‘context’ of business partnering skills (e.g. problem-solving & preventative lawyering)
  • They are strategically deploying secondees from firms like Plexus to flex up and down the capability and capacity of their functions, to more dynamically support their business – without increasing external spend

Modern businesses are based on IP, confined by regulations, and defined by legal complexity. The in-house lawyers that successfully navigate Legal Transformation will have the opportunity to become key leaders in modern enterprises.  Those that don’t will remain buried by routine legal work and will be trapped in the cycle of lower budgets and greater workloads.

If you want to know more about our latest research into Legal Transformation, or automation technology please reach out to me directly amellett@plxs.com.au.

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Photo of Lindsay Griffiths Lindsay Griffiths

Lindsay Griffiths is the International Lawyers Network’s Executive Director. In this capacity, Ms. Griffiths is responsible for the oversight and management of day-to-day operations of the International Lawyers Network (ILN). She develops strategies and implementation plans to achieve the ILN’s goals, and handles…

Lindsay Griffiths is the International Lawyers Network’s Executive Director. In this capacity, Ms. Griffiths is responsible for the oversight and management of day-to-day operations of the International Lawyers Network (ILN). She develops strategies and implementation plans to achieve the ILN’s goals, and handles recruitment, member retention, and a high level of service to members. She is engaged in the legal industry to stay on top of trends, both in law firms and law firm networks.

In her role as Executive Director, she develops and facilitates relationships among ILN member firm lawyers at 90+ law firms in 67 countries, and seeks opportunities for member firms to build business and relationships, while ensuring member participation in Network events and initiatives. These initiatives include facilitating referrals, the management and execution of the marketing and business development strategy for the Network, which encompasses all communications, push-down efforts, and marketing partnerships, providing support and guidance to the chairs and group leaders for the ILN’s thirteen practice and industry specialty groups, the ILN’s women’s initiative, the ILN’s mentorship program, the management and execution of all ILN conferences, and more.

JD Supra Readers Choice Top Author 2019

During her previous tenure as Director of Global Relationship Management, the ILN has been shortlisted as a Global Law Firm Network of the Year by The Lawyer for 2016 and 2017, and included as a Chambers & Partners Leading Law Firm Network since 2011. She was awarded “Thought Leader of the Year” by the Legal Marketing Association’s New York chapter in 2014 for her substantive contributions to the industry, and was recently included in Clio’s list for “34 People in Legal You Should Follow on Twitter.” She was also chosen for the American Bar Association Journal’s inaugural Web 100‘s Best Law Blogs, where judge Ivy Grey said “This blog is outstanding, thoughtful and useful.” Ms. Griffiths was recently chosen for as a Top Author by JD Supra in their 2019 Readers’ Choice Awards, for the level of engagement and visibility she attained with readers on the topic of marketing & business development. She has been the author of Zen & the Art of Legal Networking since February of 2009.