If we’re being honest, most companies don’t allocate tons of money for legal tech. Instead, legal teams are forced to scrutinize every single expense and jump through the nine circles of hell (as well as traverse the seven levels of purgatory, scale Mt. Everest, discover Atlantis… you know, no big deal) if they need money for new software.
Five years ago, in 2017 , it was reported that the biggest hurdle to improving tech was getting the budget. Fast forward and general counsels, IT departments, and C-level executives have become increasingly supportive of digital strategies in legal departments. Half the legal departments in Europe state that they use legal tech for just under 20% of their overall workload. Over the next few years, this number is expected to increase considerably.
Money is already slowly but surely finding its way into legal tech budgets. Despite a global slump in spending in 2020, a majority of cuts have already been reversed in 2021 with 62% of firms reportedly increasing their tech budget. In fact, 2022 is projected to witness a 5.3% increase in worldwide IT spending. The United Kingdom even announced a special fund in their 2021 budget that provides small and medium-sized enterprises with free digital skills training and discounts on software.
Half the legal departments in Europe state that they use legal tech for just under 20% of their overall workload.
As the world of legal tech grows and develops, the number of available tools is also increasing. Some will even become as essential as Microsoft Word. It’s predicted that by 2025, organizations will rely on their contract lifecycle management (CLM) system as the source of all truth regarding their contracts.
Furthermore, this reliance will help businesses boost their capabilities, cut costs, manage risk, and, most importantly, improve the bottom line. And as time passes, the pressure to reduce expenses and automate routine work will shift from the legal team to the business side, allowing legal specialists to most on higher-value work.
So why not start now? Poor decisions waste resources, while no decisions waste opportunities. This only amplifies the importance of selecting the right CLM software .
That’s why we’re here. We’ll be quickly going over some of the worst things you can do that will quickly drain (or waste) your budget for legal technology.
1. No gameplan
Before you even begin thinking about adopting new tech, you need a gameplan. Your goals and KPIs should be defined. A schedule should be drafted. Pain points and priorities should be mapped out. And acceptable costs should be understood.
Finding the right contract lifecycle management solution requires all this and more. Otherwise, you’ll have to constantly adapt to situations and ignore pressing needs. This may cause data loss, workflow interruptions, poor organization, and wasted time.
If you’re trying to justify the expenses for legal software, it’s important to highlight more than the immediate benefits. Try to specify the major improvements.
Take file storage. Having a centralized location for all documents makes life more convenient as it’s easier to find information. More importantly, you’ll have an accurate, up-to-date record at all times that can be easily backed up and secured.
But what if you’re already in the middle of digitalizing? Your best course of action is to simply finish the process. Once that’s done, you can start surveying the field and find the optimal CLM solution for you.
2. Failing to get on the same page
There once was a period during the digital transformation when the goals of IT teams were considered out of sync with business priorities. Somehow, the department with the most digital expertise was believed to not be driving the most important digital initiatives.
Times have rapidly changed since then. The COVID-19 pandemic forced many organizations to scramble and transform their IT departments from a function-driven, reactive technology “gatekeeper” to a proactive, business-driven, strategic partner.
While this process is still ongoing, legal departments were largely left behind. Most of the focus had been on how to make sure employees could keep working from home or how products and services could be delivered.
But with that done, and now that some degree of normalcy has returned, many companies have begun to transform their legal teams. By establishing an integrated business model where legal departments are a strategic partner, all processes can be united.Legal functions can focus on business growth, while tech solutions can support legal teams. And with everyone on the same page, all efforts can concentrate on the primary objective – building the organization’s success. 3. Focusing too much […]
source 10 Mistakes That Can Drain Your Legal Technology Budget
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