Article
Legal Operating Model
An array of events can trigger the need for a legal operating model transformation. A merger, the appointment of a new CEO or general counsel, a cost challenge, or a change in business strategy can force organizations to re-evaluate aspects of their legal functions.
Deloitte Legal helps organizations seeking to change their legal operating models, whether with a large-scale, end-to-end transformation or with a targeted assessment of a particular area.
Our solutions can:
- drive efficiency via process improvements and technology adoption
- improve service delivery and reduce bottlenecks
- modernize risk-management protocols
- reduce legal spend
- enable the legal team to focus on critical and strategic initiatives
Operating model assessment
Depending on each client’s needs, we can map out and coordinate a full-scale legal operating model transformations or smaller, targeted changes to specific areas.
Our deliverables include a current-state assessment and a detailed roadmap to the defined vision state. Our methodology incorporates each organization’s unique activities, risks, and cost base/levers.
Current-state assessment
May include elements such as:
- Stakeholder engagement (legal and internal customer)
- Legal service catalogue
- Legal risk analysis
- Activity analysis
- Cost analysis
Vision state
A clear target operating model design, i.e.:
- Organizational structure
- People
- Process
- Technology
- Data
- KPIs
In-house lawyers would benefit from thinking about shaping their department in terms of “legal operating models.”
A legal operating model consists of:
- The strategic direction of the department
- The governance of the function
- The tasks and services to be delivered
- The enablers or infrastructure that support these activities
- Models bring clarity. They provide systematic benchmarking to compare against similar businesses. An operating model helps assess operational performance (efficiency, effectiveness, and customer satisfaction), and it is a useful tool when planning any structural reorganization.