Source: Thomas Reuters
In today’s corporate landscape, general counsel are transforming their departments from cost centers to strategic business units. This shift reflects the growing pressure to demonstrate value while managing costs effectively.
The Business Approach to Legal Operations
The key to running a legal department like a business lies in three core areas:
- Alignment with business goals
- Visibility into external legal work
- Efficient resource management
“The main ROI has been transparency and the actions we can now take, having had that transparency,” notes Markus Warmholz, Head of Commercial Law at HARTMANN, a leading European medical products provider.
Metrics and Visibility Matter
Modern legal departments require clear metrics aligned with business objectives. This includes:
- Comprehensive matter management systems
- Data-driven insights into law firm rates
- Automated routine tasks
- Centralized document management
The Technology Impact
At AWWG, the transformation is clear. “Before, business departments did not have visibility into their contracts. Now they know when they have actions coming up and opportunities to negotiate, and everyone knows what is happening,” says Mattia Sommacale, Project Manager in their Transformation Office.
Strategic Value Creation
The benefits extend beyond efficiency:
- Better “make or buy” decisions
- Stronger negotiating positions with external firms
- Improved contract management
- Enhanced risk management
Looking Forward
As Warmholz emphasizes, “We can now track the types of legal matters we are spending on and for what types of projects… Having this data puts us in a better position to negotiate discounts.”
The message is clear: modern legal departments must operate with business precision while maintaining their core advisory function. Those that successfully make this transition will become true strategic partners to their organizations.
Read More: Thomas Reuters
