While I have been sheltering at home in the Seattle area (where Icertis is based), I’ve had the opportunity to connect virtually with many of our customers as they weather this global crisis. In between virtual contract negotiations, home-schooling small children, or strategizing on which safety gear to wear to the grocery store, Icertis customers have generously shared their time and insights as they process what contracting and business will look like post-COVID-19.

It goes without saying that a “new normal” awaits us as we (slowly and responsibly) emerge from this crisis. But just what that normal looks like will vary person to person, organization to organization. In the commercial space, every company will have to assess what’s changed and what remains foundational to their business as they chart a path to rebounding and thriving in the months and years to come.

Still, generalizations can be made and themes are emerging. Based on my conversations, five distinct imperatives for attorneys and contract managers have surfaced amid the commercial turbulence; the operations professionals supporting these functions should also take notice. I call them the “The 5 ‘Ds’ of Managing Contracts in a Post-COVID World”:

Digitize Contract Processes

The more processes a company had digitized before their entire workforce was forced to shelter in place, the better positioned they were to react to the rapidly changing circumstances. This includes those companies that had digitized their contracts and contract processes. Imagine trying to identify tens of thousands of paper agreements that might be impacted by this pandemic. In this quarantine and work-from-home world, it would be impossible to retrieve those paper contracts that were stored in filing cabinets at physical office locations. Cloud-based contract lifecycle management (CLM) enables a level of business continuity simply not possible with paper-based systems.

As the Global Head of Contract Lifecycle Risk Management at a Fortune 500 company noted to me recently: “Any organization that has gone through this and decides not to digitize is certainly missing a big learning opportunity here.”

Discover Contract Data

Another major learning from COVID-19 is just how fast commercial conditions can change. With the COVID-19 situation evolving by the hour, legal and contract professionals had to quickly and continuously assess how the crisis impacted their company’s supplier, customer, partner and employee relationships—many or all of which are defined by contracts.

Companies that had embraced contract digitization could rapidly surface contract insights (remotely and from their homes) from a centralized pool of data, and were at a distinct advantage in crafting their strategies moving forward. Contract data can tell you with whom you’re doing business and on what terms, as well as where they are located and the commercial value of the contract. Access to contracting data and insights in fluid and uncertain times is truly invaluable when a global crisis hits. For example, one company I spoke with immediately surfaced what its contracts said about delivering services remotely, so they could confidently continue working with clients despite the travel restrictions and shelter-in-place orders.

Deliver on Commitments

Whether in crisis or in steady times, one foundational truth that will remain is the importance of trust and delivering on contractual commitments.

While attention can be diverted during a crisis to a handful of contracts that are disproportionately impacted, legal and contracting teams must be confident that the ongoing business of less-impacted agreements moves forward. Following execution, managing these ongoing obligations can be done manually and docketed in calendars. However, many companies that have embraced CLM have utilized technology to undertake this work. Some companies have optimized their obligations management process by utilizing AI/machine learning models trained on terabytes of contract data that can help discover obligations and their relationships, and manage them to fulfillment, ensuring that transactions off the contracts adhere to these obligations. This is an example of how technology can free up human capital to address those contractual relationships that take priority while contract managers remain confident that other commitments and obligations continue to be delivered.

Defend Against Risk

For our colleagues in the CFO office, the pandemic provided a crash course in enterprise risk management. As the outbreak disrupted markets, CFOs were in the hot seat to create plans that increased revenue, reduced cost, accelerated cash flow and ensured compliance.

The mandate to mitigate risk is reflected in contracts and contracting processes. Getting a vital contract under signature could mean generating the cash flow necessary to maintain operations; ensuring a contract is compliant with local regulations could save a company from crippling fines; preventing maverick contracts most certainly means no contracts go out on outdated templates that don’t reflect new business conditions and terms; visibility into all contracts across the organization means negotiations can be quickly pivoted to head off emerging threats.

That onus will never go away: COVID-19 proved that companies put risk management on the back burner at their own peril, and seamless contract management is a central component to both identifying and mitigating current risks and preventing future risks.

Don’t Delay

The companies in the best position to maintain business continuity when COVID hit were those who had already digitized core processes and developed the habits, skill sets and relationships necessary to get the most out of them. As one customer shared, “The great habits we developed with Icertis pre-COVID are now coming into play, to our benefit.” We don’t know when the next crisis will hit. But we do know that the longer you delay, the less time you’ll have to prepare.

Despite the current challenges posed by this pandemic, there will be a time when legal and contracting teams will return to some semblance of “normal” (and thankfully, educating will be removed from legions of parents-turned-homeschool teachers and back in the hands of educational professionals.) These contracting and legal teams, with the help of their legal department operations partners, will be well served to document the pain points presented in this current crisis and consider the Contracting 5 Ds before the next storm.

#Topic-PatentProsecution
#Audience-LegalOperations
#AssetType-Guide​​​

With excerpts from “The Ten Questions to Ask Yourself to Influence Your Future”, as Presented by Dr. Zachary Walker, Educator, Author, and International Speaker, University College London Institute of Education at the CLOC 2020 London Institute.  He can be contacted on LinkedIn or through his website at www.drzacharywalker.com.

One of the most complicated tasks facing companies today is the challenge of aligning the cultures and expectations of multiple generations in their organization. Legal departments are not immune to these challenges. Like others, legal is often composed of multiple generational influences from Boomers to Gen Xers to Millennials. Gen Z is just starting to enter the workforce which brings in yet another shift in workplace dynamics. Today’s leaders need to manage the differences and similarities between four to six generations while integrating them into a cohesive, functional, high-performing team.

Each person comes with a different set of expectations and definitions of loyalty, ethics, and skills. Leaders need to shift to make the most of these energies and skill sets that bring incredible potential to both the department and company. The generation into which one is born is an important determinant of these personal characteristics. Of course, each individual is different – however, generational trends tend to shape ideas on “big picture” issues such as the value of teamwork, workplace expectations, and the relationship between the individual and society, and each generation tends to share similar experiences as a result of growing up at the same time.

A 2014 Harvard Business Review article exclaimed that “for the first time in history, five generations will soon be working side by side.” It continued:

“The Boomer mystified by Facebook; the Millennial who wear flip-flops in the office; the Traditionalist (born prior to 1946) who seemingly won’t ever retire; the cynical Gen Xer who’s only out for himself; and the Gen 2020er [known as Gen Z today] – born after 1997- who appears surgically attached to her smartphone.”

If you’ve attended a seminar or conference on this topic, you may have learned that these stereotypes are not valid and that all generations can and do share common values and goals.  Still, generational tensions exist within our multi-generational workforces and it’s our job to help our employees recognize and respect the skill sets that each generation brings to the table.

The U.S. Government projects the number of workers over the age of 75 will double in the next decade. In many cases, workers continue to work longer because they can’t afford to retire when they reach retirement age. And many workers in the legal profession choose to work longer because they enjoy their work and value their relationships with their coworkers. 

Generation Z, our youngest generation of workers, is just entering the workforce. By 2026, that group will surpass the number of Millennials (who are now the largest) in the workforce. These two generations will define the future of work.  Whether a 35-year-old manager managing a Boomer workforce and Gen X workforce or a 65- year-old manager managing a Gen Y and Millennial workforce, or somewhere in between, it is incumbent upon leaders and managers to know who they lead. To be successful, we will have to understand what each generation wants out of their jobs and how they envision work.

Companies that shift to strike a multi-generation allegiance will have an efficiency advantage over others that don’t. A multi-generational team offers a diverse way of looking at a project or problem. Leading them can be both a challenge and an opportunity. Understanding who they are is key.

Leading an Inter-Generational Workforce

In January 2020, the CLOC London Institute ended its educational conference with a session led by Dr. Zachary Walker from the University College London. Dr. Walker’s session was one of the highest rated sessions during the Institute. His current work focuses on Generation Z, educational neuroscience and high performance leadership.

During his session, Dr. Walker explained a few of the traits of generational groups that are, or will be, employed by your organization in the future and challenged everyone to be willing to adapt their leadership style accordingly. 

Generation Z: (Born 1996 – 2015)

According to Statista, Gen Z represents 24% of the workforce worldwide. Gen Z grew up in households that were significantly affected by 911 and the 2008 recession. As a result, financial security and stability are vital to them.

Gen Z’ers are entrepreneurial and ambitious. Surveys show that about half of them want to work for themselves – because they believe they can do “it” better – while half also want to do something that will change the world. They are competitive and financially driven. They have expectations of advancing in their roles quickly and being rewarded financially. This group is prone to burn-out, so they will need your assistance to achieve work-life “harmony.”

Gen Z values authenticity and meaningful interactions. Although they are digitally astute, they prefer to communicate face-to-face and work collaboratively. Gen Z craves feedback in real-time. Waiting until their annual evaluation to provide negative feedback will likely offend them. They want mentorship and constant feedback. They appreciate it and value it.

They value inclusion, social justice, diversity, and fairness. Dr. Walker noted organizations that simply aspire to these values would not impress a Gen Z candidate. They are influenced by “Doers.”  Congruence between what organizations say and what they do is absolutely critical to Gen Z.

Millennials or Gen Y: Born 1977 – 1995  

By this year, 2020, Millennials are forecast to comprise half of the American workforce, and by 2025, 75 percent of the global workforce. 

Millennials do not want the life of their parents, who valued work over relationships. They value work-life balance suited to allow them to enjoy their lives outside of work. Work satisfaction and financial stability are essential to Millennials; however, they aspire to strike a healthy balance between work and relationships outside of work.

This generation seeks a first-name basis relationship with their employers. They treat their employers respectfully, but they expect their employer to earn their respect. They enjoy a relaxed work environment where colleagues at various levels of leadership and responsibility can easily talk, joke, and laugh with each other while maintaining the appropriate hierarchical management structure.

Millennials value honesty, are eager to learn, appreciate personal connections, efficiency, and a sense of community.  

Generation X: Born 1965-1976   

According to Statista, Gen X represents 35% of the workforce worldwide.

The income gap between Gen X and Millennials grows wider each year.  Generation X makes more money and spends more money – 11% more than Boomers and 33% more than Millennials. They spend more because they are raising a family and caring for aging parents. The dual responsibility of caring for parents and children puts a high demand on their resources. 

Gen X values freedom and responsibility in the workplace. They are more likely to question authority than their parents and prefer flexibility in work arrangements. They don’t want to be micromanaged.  

Baby Boomers: Born 1946 – 1964 

Baby Boomers represent 6% of the workforce worldwide.

Baby boomers are hard-working – some would say workaholics – and motivated by position, prestige, perks, and money. They are independent, confident, and define themselves by their professional accomplishments. Their parents grew up during the Great Depression, and Boomers grew up under the threat of global nuclear war. They were exposed to protective drills in school in the event of a nuclear attack, lived in households stocked with food and supplies, and knew where they would shelter in the event of a nuclear attack.

A “good worker” was defined as having a strong work ethic and the willingness to “do whatever it takes to get the job done.”

Baby Boomers are often critical of younger generations for what they perceive as a lack of work ethic and commitment. 

What does the future of work look like across multiple generations?

The influence of Gen Z and Gen Y is already changing what work looks like. The future of work will value health and wellness, offer flexible workspaces and work locations, emphasize continuous professional development, use technology to create efficiencies, and enable a mobile workforce. According to Dr. Walker, the future of work will include workplace neurodiversity and the use of collective intelligence to solve problems.  

“Neurodiversity is a concept where neurological differences are to be recognized and respected as any other human variation. These differences can include those labeled with Dyspraxia, Dyslexia, Attention Deficit Hyperactivity Disorder, Dyscalculia, Autistic Spectrum, Tourette Syndrome, and others.”

Research suggests that neurodiverse individuals receive, process, and interpret information differently and often solve problems in unconventional ways. These employees are loyal, highly dependable, and adept at fitting into different work cultures.

Collective intelligence (CI) is shared or group intelligence that emerges from the collaboration, joint efforts, and competition of many individuals and appears in consensus decision making. Dr. Walker explained it this way:

“[A] group-based approach to harnessing the collective intelligence of people who work together, matching different skills and knowledge sets of internal experts to address future project needs.”

Collaboration is how younger generations prefer to work. As leaders, we are responsible for “upskilling” our employees so that we can build an environment that supports collective thinking to solve problems.

What now? 

Multiple generational organizations are the future and understanding the behaviors and drivers for each generation is critical for success. There are new ways of working every day. Collaboration and communication continue to be two of the most important components in bringing the generations together, especially as the world embraces a work from home mentality. 

Every generation is expressing a need for more flexibility, the opportunity to shift hours—to start their workdays later, or earlier, for example, or put in time at night, if necessary. Work-life balance drives satisfaction for all generations. The similarities in attitudes across generations are striking when it comes to benefits that drive satisfaction.

Multi-generation organizations are here to stay. The key is to foster the intergenerational culture by respecting the varied differences each generation contributes. It also means working as a proactive leader to eliminate strife, find the similarities and strengths and establish clear communication paths to ensure loyalty and success.

Introduction

If you work in Sales or Legal, chances are the end-of-quarter crunch is a scenario you likely know entirely too well. It’s a mad dash to the finish line — closing deals, meeting quotas and driving revenue.

Unfortunately, the quarter-close hustle can put unnecessary strain on the relationship between Legal and Sales. Deal and contract status and rapid-fire communication can result in a lack of clarity, constant status updates and frustration. At best, the scenario is a chaotic sprint but the deals get done. At worst, Sales and Legal work in silos with little transparency, viewing each other as roadblocks instead of partners in shared success.

The good news is that a productive sales quarter-end doesn’t have to be this way. At Ironclad, I’ve worked hands-on with Damon Mino, our Vice President of Sales, to align our teams around shared processes, organization and technology.

And that’s why Damon, who spent years as an in-house attorney before transitioning to Sales, and I wanted to create this guide. Over the course of this playbook, you’ll get a glimpse of the common pitfalls in the relationship between Sales and Legal, how to address them and proven best practices you can use to set your company for success.

Aligning Resources

Every General Counsel knows that today’s legal teams are being tasked to do more with less. At the same time, sales organizations are being pushed to move faster and faster. Inevitably, something’s gotta give, right? Not necessarily.

At Ironclad, our situation is a little unique. Damon is a former lawyer who transitioned over to Sales. Given his background in law, he has an insider’s perspective into both sides of the Sales/Legal equation. He’s felt firsthand the intense stress as Sales tries to track contract redlines at the tail-end of the quarter.

And there’s one thing we’ve learned from each other. Neither one of us ever wants to ask, “Who knows if this deal is ever going to get done?”

Damon and I quickly realized that it’s a lot easier to keep things moving in the right direction — and in sync — if we discuss our available resources and how to best optimize them. Fundamentally, this starts with planning.

Here’s how we approach aligning Sales and Legal:

• Understand the risks of siloing Sales and Legal. Having these teams operating independently from each other is a recipe for chaos and, inevitably, disaster. Inefficient use of legal resources slows the sales process, contributes to frustration and increases outside counsel costs. Legal inevitably becomes a bottleneck and sales reps find workarounds to get their deals done. And who could blame them?To help avoid congestion and frustration, Ironclad’s legal team participates in Sales’ quarterly business reviews. Doing so provides both teams the opportunity to discuss pending or developing deals and prioritize Legal’s time.
• Plan to anticipate volume. High contract volume is a surefire cause of legal bottlenecks. Our Sales and Legal teams keep open lines of communication and understand the expected pipeline goals, which allows Legal to ramp up and support Sales. Such support can include shifting priorities or standardizing contract terms.
• Optimize together. Quarterly reviews aren’t just beneficial for sales teams. Together, Damon and I review the previous quarter’s data and adjust discount ceilings accordingly or review friction points to decrease deal cycles. These adjustments impact both teams, and should be approached as a point of discussion and a chance to identify and implement efficiencies.

Getting Granular With Data

Beyond fostering a culture of collaboration and open communication, there’s one thing that empowers our sales and legal teams to drive revenue even in a crunch — data. Thanks to Ironclad’s digital contracting platform, Damon and I have clear, realtime insights into where deals stand in the approval process. Supplemented by data from a CRM, we can further anticipate deals that are likely to close and how to best facilitate them, reducing the stress of tight turnarounds.

For us, working within Ironclad gives us the technical structure to:

• Leverage data. The most fruitful and meaningful conversations between Sales and Legal should start well before a quarter crunch — and they should rely on data to advise leadership. We base conversations on available data, from Salesforce or a digital contract contracting platform, so both teams can optimize for efficiency. For example, our legal team can demonstrate how much faster deals close when processed on our company’s own paper versus third-party paper.
• Aim for accountability. Strong executive relationships are also founded on empathy. Damon and I often speak candidly with each other about challenges, expectations, processes and protocols for our teams. This way, we are aligned and able to hold our direct reports accountable.Manual contracting processes require deep dives into details, writing time-consuming emails, repeating and summarizing all the relevant points, all of which soaks up valuable time. With a digital contracting platform, all necessary context is instantly available. The latest redlines, key terms and language are all there in easy-to-review audit trails, from the beginning of the deal. p
• Get all hands on deck. One of the essential responsibilities of an executive is rallying those around you. At Ironclad, we focus on encouraging our team members to contribute to planning sessions and we work to remove roadblocks on business or product decisions to better facilitate participation.The more Legal can partner and collaborate with Sales, the more empathy you build. When Sales and Legal trust each other, they’re not going to avoid each other. Instead, you can address issues together as you both help the company avoid undue risk.

Striking the Balance Between Speed and Compliance

Every business wants to move as quickly as possible — especially when it comes to sales. On the other hand, every legal team knows that speed increases risk and opportunity for error. So how do you balance the two?

At Ironclad we’ve found that establishing a mix of organizational best practices and implementing key technology can help facilitate ideal outcomes. Our tactics include:

• Review and prioritize. We take a close look at tiers of terms and conditions, bucketing them into categories of “deal killer,” “important,” “preferred” and “nice-to-have.” This, along with the context of deal size, timing in the quarter and other factors, helps us get on the same page regarding deals.
• Invest in technology. Ironclad’s digital contracting platform helps ensure our alignment, transparency and compliance. Ironclad gives us instant access to the contract data that drives deals. The trends and analyses based on this data, in turn, drive powerful partnerships with Sales and keep things ticking year-round. Even better, Ironclad enables self-service sales contracting — e.g., developing a sales contract from a CRM — to help get deals done quickly within guardrails set by the legal team.

Conclusion

Legal is evolving faster than ever before. We have new tools at our disposal and the opportunity to demonstrate value across our businesses. But the first step in doing so is to strategically align with other core business functions — especially Sales. Ironclad isn’t immune to the challenges surrounding Sales and Legal partnership. By working together, focusing on training and operating with a mind for continual improvement, Damon and I have helped build a culture that doesn’t just mitigate the end-of-quarter crunches, but supports collaborative, meaningful teamwork across Sales and Legal year round.

It’s our hope that this guide can shed some light on the intricacies of building collaborative Sales and Legal teams. Every organization has different goals, but by following this core framework, you can make significant strides toward fostering collaborative teams that share in each other’s successes and are fully vested in driving revenue.

Whether it’s a fire, flood, earthquake or pandemic, disasters can strike at a moment’s notice and many organizations are unprepared to respond and still function. In times of crisis, a well-thought out business continuity plan is critical to prevent interruptions to the business.

To enable your organization to respond quickly during a disaster, you need to put a current, reliable plan in the hands of all personnel who are responsible for carrying out any part of the BCP.  The lack of a plan doesn’t just mean your organization will take longer than necessary to recover from an event or incident — you could go out of business for good. Your employees need to understand what needs to be done to get the business back on track as quickly as possible.

Your BCP should be thorough and include readiness procedures to protect against possible threats and information on roles and responsibilities. Leaders need to be identified, understand their responsibilities and be equipped with relevant information to act during a crisis situation.

Google Legal is one organization who has spent the time to develop a robust Business Continuity Plan. Here are the steps they used to prepare their plan.

Business Continuity Plan Development at Google

By Mary O’Carroll, Director of Legal Operations, Google and President of CLOC

With help from Deloitte, Google’s Legal Department embarked on a project to create a business continuity plan for the department. To help others we would like to share the process that we used during the development of our Business Continuity Plan and the learnings we experienced. This how-to guide outlines the steps that were used to create our BCP.

Project Goal

Implement an event-neutral, impact-oriented, broad business continuity program to reduce the impacts and to support the expeditious recovery of critical legal processes in the event of a disaster.

Project Objectives: Prioritize Legal Business Processes

1. Determine Qualitative and Quantitative Impacts
2. Identify Dependencies
3. Determine Recovery Requirements and Timeframes

Project Approach:

1. Understand the Process (Create process maps)
2. Conduct Business Impact Analysis (Understand the potential impacts from disruption and the resources required to perform your processes)
3. Plan for Recovery (Develop recovery plans)

UNDERSTAND THE PROCESS

Meet with leads across each practice group or area in your department.  Create high level process maps for each key process or workstream that takes place on that team.  

Things to consider in each process:

• Which location(s) is your process executed from?
• Are there other business processes / areas that you depend on to perform your process?
• What systems/tools/applications are needed?
• Are there specific skills / resources that are essential to perform your
• process?
• Are there critical documents / vital records that you need access to in order to perform your process?
• Does the process rely on a 3rd party?

CONDUCT A BUSINESS IMPACT ANALYSIS (BIA)

A BIA is a systematic process to determine and evaluate the potential effects of an interruption to critical business operations as a result of a disaster, accident or emergency. Create your list of prioritized processes based on your BIA, focusing on critical workstreams by utilizing a questionnaire to ensure consistency across impact areas.

Outputs/Deliverables: Develop a prioritized list of processes based on impacts

Take each process or workstream in the department and rank them based on the five following impact areas across multiple time frames.  Create an objective five point scale for each of these impact areas that define the magnitude of the impact.  

1. Financial impact: Impact on the finances of the organization (potential decrease in revenue, impact on cash flow) resulting from a business disruption.
2. Legal and regulatory penalties:  Exposure of the organization to legal liabilities, penalties, and regulatory sanctions due to non-compliance with applicable regulations or adherence to legal and contractual obligation following a business interruption.
3. Client experience:  Number of or percentage of clients or customers affected, how quickly the situation will impact clients, and risk of losing clients temporarily or permanently.
4. Employee experience:  Risk to employee morale/culture which could result in high employee turnover resulting from a business disruption.
5. External brand image: Impact to public confidence in the organization and negative publicity resulting from a business disruption.

Example:  Rate each workflow across this matrix on a scale from 1-5

NEXT STEPS: PLAN FOR RECOVERY

As a result of the BIA effort, we prioritized recovery efforts for the Legal Department and identified resources required for each process to be operational. The recommended next steps were to:

1. Develop recovery procedures for prioritized business areas and processes
2. Design, conduct, and evaluate tests to socialize, validate and improve procedures

Determine the recovery requirements for each critical workstream based on the following five areas:

1. Building requirements: Which of the tasks can be supported by working remotely?  Are there alternate strategies to continue operations in case the primary facility is not available?
2. Process dependency requirements: What processes within the Legal Department or other departments do you need in order to restore to normal operations? Is there a workaround available to support your team until the identified dependencies are available?
3. Technology requirements: Identify all the applications that your team requires for the identified business processes. Can the identified processes be performed without the application for a limited time – indicate the workaround where applicable?
4. Human resource requirements: What are various roles/titles within your team that are critical for defined business processes? How many personnel are available at each assigned role? How many personnel are required to support each business process at various time-periods after a disruption? How many of the personnel within each assigned role have the remote working capability? Are resources available at an alternate location?
5. Third party requirements: Is there a key third party vendor who supports the identified processes?

Effective recovery procedures address short-, medium-, and long-term outages and account for the following considerations:

• Building Specific Strategies
• Technology Specific Strategies
• Human Resources Strategies
• 3rd Party Strategies
• Dependencies
• Focus on Impacts

KEY TAKEAWAYS AND LEARNINGS

Having a concrete business continuity plan plays an essential role in today’s environment at Google Legal. We learned that the most valuable part of the entire exercise was sitting down with team leaders and having a conversation about what is critical and how we might think about recovering those workflows. Given how much organizations move and change over time, it is a lofty expectation to develop BCPs for each workflow and to ensure they are kept up to date.  Setting aside a regular time to revisit that conversation each year and talk through the “what ifs” ensures that we’re aligned on how we would proceed.  

A clear, concise and well communicated BCP is not just a nice to have, it’s a critical necessity in today’s world.

We’ve met with more than 50 clients in the past 12 months and have enjoyed a front seat to the transformation happening across legal departments. Our meetings have reinforced that CLOC’s 12 core competencies are not stagnant and continue to evolve in their application and impact. Here is a taste of what we are seeing you all accomplish. You can use these to plan your next project, benchmark with your colleagues, and to continue to show the value that you bring to your legal departments and companies.

Financial Management: This has evolved into so much more than simply reporting on spend or managing to the budget. Legal departments are overlaying spend against key objectives of the company to ensure that the allocation of legal resources aligns with the strategic priorities of the company.

Vendor Management: We started with preferred vendors and negotiating favorable pricing. Legal departments are working with vendors to solve common challenges in technology, ediscovery, and more. They are also asking vendors for data dashboarding to spot trends and inform future action.

Cross-Functional Alignment: Legal operations roles are often filled with business professionals from within the company, including finance, products and IT. These hires bring with them relationships and institutional know-how, and allow companies to repurpose people, process, and technology used in the business for use in the legal department.

Technology & Process Support: Legal operations is changing the culture of legal departments by driving the adoption of technology and incorporating process-driven workflows into serving the business.

Service Delivery & Alternative Support Models: This is not just about insourcing versus outsourcing. It is about right sourcing the work to ensure that tasks are assigned to the right resource. This allows everyone on the team to focus on the high-impact and high-value work. Legal operations professionals are shining a light on churn and helping legal departments to stop doing tasks that don’t bring value.

Organizational Design, Support & Management: Legal operations departments are no longer behind the scenes. The groups are front and center within legal departments and the business. Legal operations professionals are increasingly leading pitch meetings, panel selection, fee negotiations, and outside counsel evaluations, and have more optics into organizational changes impacting their legal departments.

Communications: Together with their GCs, legal operations departments are helping accelerate change and are creating innovation fluency about the company’s business and legal industry. At legal department meetings, they are highlighting how technology is transforming their business, mapping legal goals to innovation objectives of the business, and are training on skills core to legal operations. At legal department retreats, they are changing the curriculum to include design thinking sessions, technology updates, and data metrics discussions. They are also bringing together outside counsel to share innovation success stories so that they may be replicated across all firms supporting the company.

Data Analytics: Using data, legal operations is changing the conversation about value. What is the business goal for the matter? How will success be measured? Are legal resources aligned to the business’s strategies? Legal operations departments are driving the creation of dashboards to spot trends, inform future action, and identify missed opportunities. They are also capturing knowledge about the performance and use of their outside counsel. This includes tracking who at what firms have done work in particular areas for the company, working toward a future where legal operations can provide predictive analytics on who is best suited to solve a specific problem for the business.

Litigation Support & IP Management: Legal departments are partnering with IT to bring even more of the ediscovery lifecycle in-house. Teams from information security, IT, internal investigations, and legal operations are working together to show how particular license offerings can reduce spend exponentially. They are using advanced features to identify risk before litigation and are reducing their digital footprint with their vendors by 50 to 90%.

Knowledge Management: In response to the needs of the business, especially during periods of rapid growth, legal operations departments are creating on-demand, self-service legal solutions for their internal customers. To do so, they scope what the business needs, how much of the need requires interaction with a lawyer, and what portion can be solved with automation and standardization. These solutions are driven by playbooks, AI and legal bots.

Information Governance & Records Management: Legal operations departments are creating programs that provide the business better access to information so that it can harness data for a strategic advantage and, in some cases, monetize that data. They are driving the creation of policy and procedure that is practical and enhances service to the business. They are also complying with emerging data privacy laws and protecting against data breach and the associated reputational damage.

Strategic Planning: Legal operations leaders are reporting directly to their general counsel and are helping set the strategy and goals for the legal department. They increasingly have a seat at the table and are measuring their achievement and performance against the established goals for the legal department.

Today’s world is one of intertwining systems, in which many challenges are fluid, multifaceted, and undeniably human. Organizations, inside and outside of the legal sector, must come to grips with – and even embrace – disruptive forces like technology. They must ask themselves how they will evolve in response to such rapid, technological change – and how they will support team members and transform large systems simultaneously.

For many, the problem-solving methodology – known as design thinking – is an effective way to answer these and other big questions. In fact, it is slowly becoming an important part of today’s complex, interconnected world. Design thinking is vital to the development and refinement of skills – those allowing us to better understand and respond to organizational and societal changes. It helps designers, especially, carry out research and brainstorm ideas before creating prototypes and testing out viable solutions.

Design thinking is more than just a process, though. It combines the possibilities of technology, the needs of people, and the requirements for overall business success. Thinking more like a designer can help transform organizations’ products, services, and entire business strategy. That’s because the approach brings together what is the most feasible, technologically speaking, with what is the most desirable from a human standpoint.

The Evolution of Design Thinking

Compared to the centuries-old scientific method, design thinking is relatively new as a mindset and methodology. In a way, it sprung from the industrial revolution, in which the limits of what we thought was technologically possible were pushed in dramatic fashion. Industrial designers, architects, and engineers, etc. – driven by the significant societal changes of the 20th century – later came together in a demonstration of collective problem-solving.

But it was cognitive scientist and Nobel Prize laureate Herbert A. Simon who was the first to mention design thinking as a way of conceptualizing. In his 1969 book, The Sciences of the Artificial, Simon offered many ideas considered to be the principles of design thinking. Then, in the 1970s, design thinking started to address the human and technological needs of the day.

Celebrated designers who have adopted this method include Naoto Fukasawa, Saul Bass, Florence Knoll, and Le Corbusier, as well as Ray and Charles Eames. They each knew that coming up with elegant answers requires paying attention to the context of the problems and the consequences of the solutions. It means taking into account human priorities along the way to innovation.

Today, design thinking is on its way to becoming one of the leading innovation methodologies. Across many industries and disciplines, hundreds of thousands of people have now been introduced to the most basic concepts of design thinking. Through it, many have even experienced those ‘a-ha’ moments, in which they suddenly view their work – and the world – from an entirely new perspective. Individuals realize their own creative capacity, while problem-solving teams make progress toward their goals in less time than it takes through traditionally entrenched methods. Design thinking has generated groundbreaking solutions in the most exciting, innovative ways. It has been promoted at every level of business, and is behind the success of a number of high-profile, global companies, particularly Google, Apple, and Airbnb.

The Five Stages of Design Thinking

Of course, there’s no one definition of design thinking. But most agree that it is a systematic yet adaptable approach to problem-solving and innovation. Think of it as a non-linear methodology that offers a means to think deeply outside the box in order to solve problems that are ill-defined – or even unknown. Design thinking, after all, is human-centered, intentional, experimental, and responsive, as well as completely tolerant of failure, itself.

More specifically, design thinking consists of five phases: empathize, define, ideate, prototype, and test. The first phase allows you to better understand a problem from an empathetic standpoint. The next phase is an opportunity to analyze and synthesize all of the information gathered during the first phase, before identifying and defining the core problem. In the third phase, you can begin to think ‘outside of the box,’ looking at the problem in alternative ways and generating ideas based on the knowledge acquired during the first two phases. In the fourth phase, you can come up with possible solutions to the problem – those fully explored during the first three stages. Finally, the solutions that are identified in the previous phase are put to a rigorous test.

The Future of Design Thinking

As design thinking moves further away from being a nascent practice, more people will appreciate its value, becoming committed, leading practitioners of design thinking, themselves. Of course, design thinking takes some learning and practice. It takes time to tinker with and test, not to mention an overall willingness to fail early-on – and often – throughout the entire process.

At the end of the day, though, in-house counsels and the like should try looking at large-scale challenges in legal through the eyes of a designer. In that way, they can become dynamic and superior problem-solvers, themselves. They can help create design criteria, and brainstorm and test solutions that can eventually become real-world innovations.

Also key to problem-solving are the craft and expertise of designers across many disciplines. Design thinking calls for collaboration with a critical mass of individuals with unique mindsets and sets of skills – those who can approach the unknown with certainty and resolve, and develop new approaches and strategies. With them, legal teams can utilize design thinking to take on some of the biggest organizational challenges, such as how to drive artificial intelligence (AI) applications as part of their digital transformation. They can aspire to have CLOC’s 12 core competencies for legal operations, reaching new levels of maturity.

Learn More About Design Thinking and ContractPodAi

Want to learn to develop your own framework and best practices around the design thinking process? At CLOC 2020 Vegas Institute, ContractPodAi will lead an informative, 90-minute workshop session on this excitingly relevant topic. Join us at 3:30pm on the 12th May.

We will be joined by Hunter Simon, Vice-President of Business Affairs and General Counsel at Technicolor Production Services, the multinational media, communication and entertainment corporation. Together, we will discuss the need for outside-the-box thinking in order to solve problems; the ways to go about the design thinking process; and how exactly to leverage design thinking in order to implement – and drive the adoption of – brand-new systems.

The third annual CLOC London Institute kicked off on January 20th, 2020, at the Landmark Hotel, London. Over the course of two days, an energetic crowd of 430 attendees from 27 countries came together to CONNECT, LEARN, and COLLABORATE.

Legal Operations professionals from corporate teams and law firms filled the educational sessions and networked with legal vendors and service providers in the exhibit hall to exchange ideas, share information, learn about new services and technologies, and to challenge each other to reach new heights in 2021.

The structured meet-and-greets were fantastic opportunities to forge new partnerships and to rekindle existing ones. Members of the CLOC community also got together quite organically during the Institute to share dinner, or a cocktail, and built even stronger connections. These “Off the CLOC” social and business gatherings presented additional networking opportunities for participants, that will have a ripple effect throughout the year.

The Institute kicked off with opening remarks from Mary O’Carroll and me, followed by an always inspiring opening keynote by Dan Katz, who spoke on (yes, you guessed it) where legal technology and innovation has taken the industry over the last 10 years and his top predictions for the future.

Our goal for the Institute was to provide content that was tailored to the European legal ecosystem, while being practical and providing actions that could be implemented immediately. CLOC’s 2020 priorities seemed to resonate well across the community in Europe.

Here are a few key insights that I took away from London:

• Better Together: We are stronger as a connected community. In an ecosystem in a rapid state of evolution, everyone acknowledged that working in silos will hamper our ability to drive sustainable transformation. We need to work even more closely together to be successful. All boats rise with this collaborative approach, and we all become more invested in each other’s success when we work together to build solutions. Hearing the results of these types of collaborations will be a focus for CLOC London 2021!
• The CLOC Community is a Powerful Movement and Force for Good in the Industry. In an industry that is in a rapid state of transition, harnessing our collective ingenuity and diverse skills and thought will be an imperative for law firms and in-house teams that want to be agile, innovative and impactful to the clients and businesses they serve. We have the opportunity to leverage our collective power to drive positive change across the legal industry and create space for conversations on how we can make a difference. Let’s take on this challenge together!

• As GC roles evolve, Legal Ops is an Imperative Hire. Our panel of General Counsels leading the “General Counsel and their Legal Operations Lead” session demonstrated the powerful and strategic nature of the GC/Legal Ops Lead partnership and how working together, they are driving transformation and delivering value to the businesses they serve. Legal Operations Leads are now essential hires for GCs.
• Technology is an Enabler, Not a Silver Bullet. Technology implementations are still very challenging: user adoption and change management are still areas of underinvestment. Efforts to gain consensus on both the problem being solved and the potential products and services that will lead to better adoption of the selected solution is key. This will be another area of focus in 2021!
• The Proliferation of Legal-tech and Legal Services Providers is Overwhelming for In-House Teams. The new CLOC Legal Ops Directory is a good start in identifying all the vendors; however, this proliferation of vendors represents a more significant challenge for in-house Legal Ops teams . We would like to see more vendor consolidation within legal-tech. We need enterprise systems that work together seamlessly.
• This interoperability between systems will only be possible when vendors across the legal technology industry begin to collaborate to solve the problems challenging Legal Ops and their teams.
• Data is Power. Leveraging data and analytics to measure Legal Teams impact on the business is imperative in driving strategic decisions with business leaders and law firms. Many teams are struggling with access to easily consumable data due to multiple tools and integration challenges. Consolidated platform systems will help to access data and legal service providers can help with cleansing data and the human effort to build foundational dashboards to leverage predictive analytics capabilities.
• AI Needs HI. AI is still in the nascent stages with multiple tools solving unique use cases that need significant Human Intervention (HI). We need to see more vendor consolidation and collaborating in this space to reduce the heavy lift for in house teams. Legal service providers working with AI vendors can present better solutions to clients if they work together.

• Human Capital is Still Our Most Significant Asset! Are we doing enough to nurture and grow our Legal Leaders? The “Legal Leaders of the Future” session reminded us of the need to invest in our people and not leave anyone behind. This will require an intentional effort and investment in the development of resilience skills to prepare leaders for a more VUCA (volatility, uncertainty, complexity, and ambiguity) world. The CLOC community can help chart a new course for those in our community who feel rudderless and fearful of the changes ahead. Together, we can inspire confidence in our ability to operate successfully in a new future by sharing ideas and leveraging next-gen development programs.
• Progress, not Perfection, is Our Mantra. The Legal Ops Journey panel offered a fascinating insight into the different approaches each of the panellists took when prioritizing their initiatives in the first year of their roles. Progress, not perfection, is an essential mantra to adopt. Investments in change management initiatives are crucial to bringing people with you on the transformation journey.
• Law Firm Leaders Need to Solve Client Challenges. Law Firm COO and Innovation roles will help drive change, but in-house teams need to use their influence and buying power to invest in and reward innovative firms.

The 2020 London Institute was a great success in bringing our members together to Connect, Learn, and Collaborate. We are excited to begin planning the 2021 London Institute and hearing how the connections and collaborations forged this year have impacted each of you and your journeys as Legal Ops Leaders.

Mark your calendars for January 18-19, 2021. We’ll be meeting at the Grand Lancaster, London. See you there!

Technology is not the answer! I repeat this phrase at least a dozen times a day to my entire legal department. Don’t get me wrong – I LOVE legal tech! My first task as a legal operations leader was to assess our current tools and devise our technology road map for the future. However, it kills me when everyone assumes that once we license a tool, everything will function as ‘clockwork’. The truth is, licensing a tool is like getting a gym membership – it doesn’t work, unless you do the work. In this article, I want to emphasize the importance of the ‘2 Ps’, people and process, that make technology work. With all the hype around legal tech, I feel that everyone forgets that any technology is only as good as the people that use it and the process it supports.

Innovation means different things to different people. Against popular belief, I don’t think innovation always means some big technology implementation is the answer. Innovation starts through an adoption mindset of our people and is reflected in the process we follow.

People:

1. Change the ‘we have always done it this way’ mindset

I mentally switch off the minute I hear this phrase, and let’s face it; we all hear it at our workplace almost every day. Most people don’t believe in changing status quo or questioning why something is being done a certain way. They assume that someone else in the organization must have thought through the process and there may be a valid reason for doing a task. Well, sorry to burst that bubble – but most times no one has really thought through a process or if they did, it was possibly eons ago and is not relevant today. Most times when you actually dig deep into any process, there could be a large chunk of tasks which are non-value add tasks. And, quickly eliminating that task will save time and energy. However, keep in mind that eliminating non-value tasks can threaten the status quo and you’ll still face challenges. In my professional journey, I have always believed in building my team with people with the right attitude because only then can my innovative ideas see the light of the day. For the extended team, it is an uphill task of constantly educating the leaders and team members to look at things from various angles and from a new perspective. No matter how you hard you try, you will have naysayers in the team who generally either fall in line or fallout over a period of time.

2. Find fearless team members

An innovative environment needs people who are not scared of making mistakes. The leadership team needs to create a psychologically safe environment to let people know that it is ok to make mistakes. This needs constant reinforcement and clear messaging from the top leadership. I do like to draw some distinctions here though. While I am happy for people to try things differently and fail, I don’t have tolerance for sloppy mistakes on a business as usual process. Most team members are bogged down with so many daily operational deliverables and KRAs that it doesn’t leave them with any mind space to think of new ways to do things. The ones who genuinely have the passion to innovate will free their mind and find time to tread on new paths.

3. The doers are better than the dreamers

Most innovative people are creative and by that nature also dreamers. I am occasionally guilty of tuning out from the realities of life and imagining a world that may be. This is the space where I get my next bright idea. Unfortunately, ideas don’t work on their own and I have to quickly roll up my sleeves and get my hands dirty. I give higher points to people who actually get the job done than those who spend a large part of their day talking about an organization that should, or could, have been. There is scope for improvement in most processes across organization and those improvements are not going to magically happen on their own. We will need the doers to get down to the root of the process and fix it as required.

Process:

1. Document a process

Most legal departments don’t document their processes. Most people undermine the freedom that process documentation brings to them. They fear that documenting processes will mean that no one in the organization will need those teams in the future. I was recently working with my IT team on a tech implementation and I asked my IT team to document their process for future use so that I don’t trouble them each time. The junior IT team member looked at me innocently and said I would make him lose his job. What he didn’t realize was that I was trying to free up his time to focus on other projects, rather than constantly repeating work and wasting his valuable time. I don’t necessarily blame him for his response since he was being candid with me. He may have been sharing what he had learned from his senior team members. This brings me back to my earlier point of changing people’s mindset, which has to be a top-down approach since team members tend to emulate their leaders.

2. Break down the process

This is the key to any change. Although an end to end process may overwhelm everyone, breaking process down to every single task will help identify tasks that can be eliminated, automated, or reassigned to a different resource. We recently reviewed some of our document archival processes and were able to eliminate 60% of the tasks after they were broken down. The team can now support larger volumes and is able to manage certain other tasks that they were not doing earlier. I strongly believe that process improvement can only happen once we have detailed process and procedure maps with all steps broken down to the individual task.

3. Not a one-time task

You can’t draft process maps, file them somewhere and forget about them. Process improvement is a continuous activity. Legal departments now have dedicated legal ops team which include process experts to monitor current processes and are constantly thinking of ways and means of improving processes. Once the process experts sit side by side with lawyers, they are able to see the impact of process changes and immediately recommend tweaks as needed. Infusing legal teams with business, finance, IT and process experts also instils a culture of viewing the department as a business and not purely as an advisory shop.

While discussions on legal tech continue to grow, as they should, we need to continue to state the importance of people and process. We don’t want the very critical pillars of a successful and innovative department to be lost under the bright and shiny lights of legal technology. CLOC understands the importance of the 2 Ps and the core competencies for legal ops teams include communication, cross functional alignment, and technology and process support amongst others. As I continue to look at new technology in the market, I never lose sight of my people that I continue to train and the processes I continue to improve.