(Author) Legal Operations Department Lead:

How do you foster a culture of efficiency in your legal department? I just started at a new company and want to help focus mindsets towards efficiency. Thoughts on how best to do this?

Legal Operations Manager responses:

• The challenge lies in aligning individual incentives with organizational efficiency goals. The traditional billable hour model at law firms often contradicts efficiency, which makes it a tough nut to crack. However, in-house legal departments, being thought of as cost centers, naturally incline towards efficiency due to economic pressures. Trying different tactics and rewarding those who adopt new efficient practices can make a big difference.

• Understanding motivation and incentives is key. Culture surveys can provide actionable insights to nudge innovation initiatives towards efficiency. Initially, I thought efficiency was about productivity (for legal departments) and profitability (for law firms), and believed financial rewards would drive desired behaviors. However, I discovered that while compensation is a factor, it's not the only driver. Change management, combined with a well-thought-out communication strategy, can significantly promote buy-in and drive efficiency.

• Reviewing service levels from external counsel can show areas of improvement. Evaluations encompassing company knowledge, practice area expertise, budget adherence, and responsiveness can be quite enlightening. Scorecards serve as effective report cards initiating structured dialogues. Benchmarking metrics provided by firms (that good at metrics) can further bolster the relationship and efficiency.

• Creating measures and rewards based on the core values of your legal department can foster a culture of efficiency. Being consistent in your management style, promoting collaboration, integrity, and effective communication are crucial for building a positive culture that values efficiency.​

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