Create overview and value in the legal function with a Legal Operating Model

A Legal Operating Model provides legal departments with the same structured approach to operations that the finance department has had for years. The result is better efforts with the available resources, systematic digitalisation and precise oversight of priorities and consequences. 

In the finance function, Operating Models have for many years helped to create a systematic approach and detailed oversight of the department's organisation, tasks, processes, system support and competencies.

But the finance function isn't the only one to benefit from an Operating Model. In Legal as well, both the Legal team itself and the rest of the company will quickly begin to reap benefits both financially and in terms of risk, because with better oversight and prioritisation, targeted business support can be deployed where legal creates the most value.

But what is an Operating Model anyway? And – even more importantly – how does it help Legal achieve better oversight and value creation?

If you ask the finance department how they carry out month-end closing, they will without hesitation be able to tell you precisely which processes are running, who is responsible for what, and which systems support the tasks. 

And this is thanks in part to an Operating Model, which in short is your department's roadmap – a systematic and detailed overview that can enhance both the quality and efficiency of your work and free up bandwidth for the most complex challenges and value-creating solutions. 

If you ask about a corresponding central process in the legal department, the answer will probably be less precise. Legal departments have traditionally operated more ad hoc and adapted to individual tasks, stakeholders, priorities, resources etc. But a Legal Operating Model can replace this with a more systematic approach to tasks. 

An Operating Model consists of five dimensions, which are interdependent: 

1. Organisation: How is the department organised? Who has responsibility for what, and where are the interfaces – both internally and towards other departments? 
2. Tasks: The complete overview of all tasks and task types – from contract review to compliance. 
3. Processes: Which processes does the department execute, and who has responsibility in each phase? Which processes run internally in Legal, and which cross departmental boundaries?  
4. System support: When you have processes in place, you can look at whether and where tasks and workflows can be digitalised. Which IT systems support which processes, and where are the dependencies? 
5. Competencies: What competencies do the tasks require, and how does this match the current resources in the department? 

An Operating Model also requires that you define precise delivery criteria and service level agreements (SLAs) for each task type. This could look like this:

GDPR assessments:

• Response time: Five working days for data processing activities
• Delivery: Completed DPIA template + implementation recommendation 
• Follow-up: Compliance check after six months.

These SLAs provide three advantages: The business knows what they can expect, employees have clear quality standards, and if a lawyer changes job, deliveries continue at the same level. 

If you ask us, a Legal Operating Model is the future way to create an efficient legal department, where increased complexity and volume in tasks can be solved in the best possible way with the same resources.

And although creating a Legal Operating Model is a demanding task in terms of time and resources, it quickly pays for itself in the form of better oversight, use of the team's resources, experience of job satisfaction and increased respect for Legal as a strategic business partner.