{"id":261,"date":"2020-08-13T00:46:01","date_gmt":"2020-08-13T00:46:01","guid":{"rendered":"https:\/\/insight.thomsonreuters.com\/mena\/legal\/posts\/why-every-legal-department-needs-their-own-data-strategy"},"modified":"2023-06-29T08:21:46","modified_gmt":"2023-06-29T08:21:46","slug":"why-every-legal-department-needs-their-own-data-strategy","status":"publish","type":"post","link":"https:\/\/insight.thomsonreuters.com\/mena\/legal\/posts\/why-every-legal-department-needs-their-own-data-strategy","title":{"rendered":"Why Every Legal Department Needs Their Own Data Strategy"},"content":{"rendered":"\n<h4 class=\"wp-block-heading\">You might have heard that saying about data \u2013 it&#8217;s referred to as the \u2018new oil\u2019, or as a \u2018new gold rush\u2019. By now, most of us know that we are living firmly in the century of data. If there was any doubt &#8211; the Harvard Business Review has decided that&nbsp;data science is the <a href=\"https:\/\/hbr.org\/2012\/10\/data-scientist-the-sexiest-job-of-the-21st-century#:~:text=Data%20scientists%20are%20the%20key,the%20data%20and%20communicate%20it.\">&#8220;sexiest role of the 21<sup>st<\/sup>&nbsp;century&#8221;<\/a>.&nbsp;<\/h4>\n\n\n\n<p>In the corporate world, data is no longer the by-product of&nbsp;our day-to-day work.&nbsp;Instead, it&#8217;s&nbsp;a critical business asset.&nbsp;Companies that are&nbsp;better&nbsp;able to&nbsp;access and use&nbsp;their&nbsp;data&nbsp;have an increasing&nbsp;competitive advantage&nbsp;over their rivals.&nbsp;There is a race&nbsp;for companies to undergo &#8216;digital transformation&#8217; and become data-driven companies.&nbsp;<\/p>\n\n\n\n<p>Although the legal sector has arguably been slower than other parts of the economy to embrace this rush towards data, there are signs that legal teams are now catching up. For example, according to this year&#8217;s&nbsp;Thomson Reuters&nbsp;<em><a href=\"https:\/\/insight.thomsonreuters.com.au\/legal\/resources\/resource\/state-of-us-corporate-law-departments-report-adapting-to-2020\">State of Corporate Law Departments Report<\/a><\/em>, the clear priority for many corporate legal teams in the US is to enhance the team&#8217;s effectiveness. This includes the adoption of more disciplined legal operations principles, more data collection and more data-driven decision making.&nbsp;<\/p>\n\n\n\n<p>For&nbsp;those&nbsp;legal teams&nbsp;that are&nbsp;now&nbsp;investing time&nbsp;to think&nbsp;about&nbsp;the role&nbsp;that&nbsp;data plays in their&nbsp;work,&nbsp;and&nbsp;who are looking&nbsp;to&nbsp;get the best return on&nbsp;that investment, it&#8217;s important&nbsp;to have a legal data strategy.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is a legal data strategy?&nbsp;<\/h2>\n\n\n\n<p>The concept of a&nbsp;<strong>data strategy<\/strong>&nbsp;is&nbsp;for the organisation to&nbsp;have&nbsp;a&nbsp;deliberate&nbsp;plan&nbsp;for how it&nbsp;will&nbsp;collect, store, manage, share and use data.&nbsp;<\/p>\n\n\n\n<p>A&nbsp;<strong>legal data strategy<\/strong>&nbsp;is the same,&nbsp;with&nbsp;the focus&nbsp;being&nbsp;on data that is relevant to the&nbsp;organisation&#8217;s legal function.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;There are no rules about what goes into a legal data strategy, and there is no \u2018one-size-fits-all&#8217; approach. The plan could as simple as a few bullet points, or it could be a much more comprehensive strategic planning document.&#8221; &nbsp;&nbsp;<\/p>\n<cite>&#8211; Michael Milnes, Head of Competition and Consumer Protection \u2013 Practical Law and Principal Lawyer at Supplied Legal<\/cite><\/blockquote>\n\n\n\n<p>A typical&nbsp;legal data strategy&nbsp;plan might&nbsp;include:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A statement about&nbsp;different&nbsp;goals and objectives&nbsp;that&nbsp;the plan is intended to achieve.&nbsp;<\/li>\n\n\n\n<li>Details of how&nbsp;the plan&nbsp;reflects,&nbsp;or&nbsp;fits into,&nbsp;the organisation&#8217;s existing&nbsp;statements of its&nbsp;vision, mission&nbsp;and values.&nbsp;<\/li>\n\n\n\n<li>A framework for&nbsp;how new&nbsp;data-related capabilities&nbsp;will be developed.&nbsp;<\/li>\n\n\n\n<li>Details of any&nbsp;budget or&nbsp;resources that will&nbsp;be allocated to achieving the plan.&nbsp;<\/li>\n\n\n\n<li>Any milestones, targets or goals the legal team wants to achieve \u2013 and the timetable.&nbsp;<\/li>\n\n\n\n<li>Accountability for different parts of the plan, and how success will be measured or defined.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">How&nbsp;can legal teams&nbsp;develop a legal&nbsp;data strategy?&nbsp;<\/h2>\n\n\n\n<p>An effective legal data strategy should form an integral part of a legal team&#8217;s strategic planning process.&nbsp;Ideally,&nbsp;legal teams&nbsp;will already&nbsp;have a&nbsp;strategic plan&nbsp;that sets out&nbsp;its priorities&nbsp;for the year,&nbsp;and&nbsp;how&nbsp;the work of the legal team&nbsp;will&nbsp;support&nbsp;the organisation&#8217;s strategic goals.&nbsp;If your team doesn&#8217;t&nbsp;already have a strategic plan, this could be the impetus&nbsp;to start.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;First, start by identifying&nbsp;the questions that the legal team would like to be able to answer&nbsp;\u2013 or that the&nbsp;company&#8217;s management expects&nbsp;the team&nbsp;to be able to answer.&nbsp;Data is&nbsp;only&nbsp;useful if it can help answer questions&nbsp;&#8211;&nbsp;so what are those questions?&#8221;<\/p>\n<cite>&#8211; Michael Milnes, Head of Competition and Consumer Protection \u2013 Practical Law and Principal Lawyer at Supplied Legal<\/cite><\/blockquote>\n\n\n\n<p>Next, identify what data is being collected already.&nbsp;Remember that data can be&nbsp;<strong>structured<\/strong>&nbsp;(for example, a spreadsheet extracted from e-billing or&nbsp;<a href=\"https:\/\/legal.thomsonreuters.com.au\/products\/legal-tracker\/\">matter management software<\/a>), but can also be&nbsp;<strong>unstructured<\/strong>&nbsp;(for example, a shared folder containing different types of contracts, each of which includes information such as party names, contract length, price and payment terms and other data about the relationship).&nbsp;<\/p>\n\n\n\n<p>Questions to ask then include:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Is the right data being collected?&nbsp;<\/li>\n\n\n\n<li>Does the team need to&nbsp;adjust how it&nbsp;collects&nbsp;data?&nbsp;<\/li>\n\n\n\n<li>How and where is the data stored?&nbsp;&nbsp;&nbsp;<\/li>\n\n\n\n<li>Can&nbsp;data&nbsp;be quickly and easily accessed?&nbsp;<\/li>\n\n\n\n<li>Does the team have the skills to analyse the data&nbsp;and&nbsp;draw&nbsp;conclusions?&nbsp;<\/li>\n\n\n\n<li>Is data being collected in a way that makes it possible to benchmark against other organisations?&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>To show how this might work in practice, think about the commonly heard criticism &#8211; that \u2018getting legal involved slows down the project\u2019. So, for an in-house legal team, one strategic goal might be to build a stronger relationship with the business, by tackling this perception that the legal team is slow.&nbsp;<\/p>\n\n\n\n<p>The team might then decide that one element of its legal data strategy will be to start measuring and regularly report on the average duration of different types of matters. The team might set goals around standardising their process for when a request is treated as being \u2018open\u2019 and \u2018complete\u2019.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Somebody in the team might be appointed to learn how to extract this data from the team&#8217;s matter management system. The team might set a goal to develop a reporting dashboard that includes this data. These steps will allow the team to monitor trends over time and across the business. It will also help the team identify and solve real problems, which, over time, will change the perception about the team being slow.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How&nbsp;can legal teams&nbsp;implement&nbsp;a legal data strategy?&nbsp;<\/h2>\n\n\n\n<p>The first time a legal team embarks on a project to adopt and implement a legal data strategy, it&#8217;s important to apply the <a href=\"https:\/\/insight.thomsonreuters.com.au\/legal\/resources\/resource\/combatting-change-fatigue-whitepaper\">principles of successful change management<\/a>.&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p>It&#8217;s a good idea to start&nbsp;with a&nbsp;small&nbsp;data-related&nbsp;project.&nbsp;Involve people you know are&nbsp;&#8220;change champions&#8221;, who are keen to see the project succeed&nbsp;and try set&nbsp;achievable goals.&nbsp;Early wins can&nbsp;build momentum.&nbsp;It can also be&nbsp;beneficial&nbsp;to find a&nbsp;visible&nbsp;project, or a project where it&nbsp;is&nbsp;already acknowledged that&nbsp;there are questions that need to be&nbsp;answered.&nbsp;The best projects to start with are those&nbsp;where it will&nbsp;make life easier&nbsp;for&nbsp;an&nbsp;end-user&nbsp;in the business.&nbsp;It&nbsp;can sometimes&nbsp;be a good idea to&nbsp;pick a project that doesn&#8217;t sit with&nbsp;a&nbsp;specific&nbsp;department, so&nbsp;it isn&#8217;t&nbsp;&#8220;owned&#8221;&nbsp;by&nbsp;that&nbsp;department&nbsp;or&nbsp;subject to their interference.&nbsp;On the other hand,&nbsp;if there is a&nbsp;team&nbsp;that&nbsp;you regularly work with,&nbsp;and&nbsp;you&nbsp;count&nbsp;them&nbsp;as &#8220;supporters&#8221;, then getting them involved&nbsp;can be beneficial, because&nbsp;you can get honest and enthusiastic feedback.&nbsp;<\/p>\n\n\n\n<p><strong>RELATED ARTICLE:<\/strong>&nbsp;<a href=\"https:\/\/insight.thomsonreuters.com.au\/legal\/posts\/4-strategic-tips-for-legal-counsel-working-remotely\">4 Strategic Tips for Legal Counsel Working Remotely<\/a>&nbsp;<\/p>\n\n\n\n<p>You can also look into building partnerships with teams that can help you learn about using data. The legal team might have connections among the IT, finance or procurement functions, where there are often managers who have the skills to handle data and extract insights. You might be able to arrange learning and development support from the human resources function. It can also be helpful if you can connect the legal team&#8217;s efforts to any wider organisational transformation efforts that are in progress, so you get consistency and support from across the organisation.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Taking the legal data strategy into the future&nbsp;<\/h2>\n\n\n\n<p>Your legal data strategy\u00a0need not\u00a0remain static.\u00a0As\u00a0your legal\u00a0team becomes more familiar and confident with managing and using data, the plan can evolve.\u00a0Eventually\u00a0data\u00a0analysis\u00a0and data-driven decision will\u00a0start to\u00a0become\u00a0part of\u00a0your\u00a0team&#8217;s culture.\u00a0The pay-off\u00a0will be\u00a0better quality outcomes, quicker turn-around times and more consistency.\u00a0Your legal team will be able to\u00a0deliver\u00a0ever more\u00a0precise insight\u00a0to answer\u00a0the strategic questions of\u00a0how and\u00a0exactly\u00a0where to\u00a0target resources\u00a0\u2013 and\u00a0will have\u00a0the data to prove it.\u00a0<\/p>\n\n\n\n<p><strong>RELATED ARTICLES:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/insight.thomsonreuters.com\/mena\/legal\/posts\/cyber-security-a-lawyers-guide-to-data-protection\" target=\"_blank\" rel=\"noreferrer noopener\">Cyber Security: A Lawyer\u2019s Guide to Data Protection<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/insight.thomsonreuters.com\/mena\/legal\/posts\/gdpr-breaking-down-the-general-data-protection-regulation\" target=\"_blank\" rel=\"noreferrer noopener\">Breaking Down the General Data Protection Regulation (GDPR)<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/insight.thomsonreuters.com\/mena\/legal\/posts\/navigating-the-intricacies-of-uae-labor-law\" target=\"_blank\" rel=\"noreferrer noopener\">Navigating The Intricacies Of UAE Labor Law<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/insight.thomsonreuters.com\/mena\/legal\/posts\/uae-data-protection-law-essential-guide\" target=\"_blank\" rel=\"noreferrer noopener\">Mastering UAE Data Protection Law: Essential Guide<\/a><\/li>\n<\/ul>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>An effective legal data strategy should form an integral part of a legal team&#8217;s strategic planning process.<\/p>\n","protected":false},"author":38,"featured_media":262,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[643,4,587,588,645,602,667,609,625,668],"tags":[93,173,734,735,698,270,425],"insight_job_role":[662,595,598],"insight_practice_area":[579,583],"class_list":["entry","author-michaelmilnes","has-excerpt","post-261","post","type-post","status-publish","format-standard","has-post-thumbnail","category-cloud-computing","category-data-privacy","category-document-automation-and-management","category-efficiency-and-time-management","category-innovation-and-disruption-in-law","category-innovation-and-technology","category-legal-commentary-and-opinion","category-legal-technology","category-research-and-know-how","category-trends-and-the-future-of-law","tag-business-strategy","tag-data-analytics","tag-data-science","tag-data-strategy","tag-digital-transformation","tag-in-house","tag-practical-law","insight_job_role-compliance-officer","insight_job_role-general-counsel","insight_job_role-in-house-lawyer","insight_practice_area-commercial-law","insight_practice_area-competition-law","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - 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