In its 2021 State of Legal Operations Survey, Deloitte researchers sought information from legal professionals at over 80 companies.
Participants were asked what issues they thought were top of mind among legal departments throughout the nation. They chose one or more of the twelve Corporate Legal Operations Consortium (CLOC) core competencies. Unsurprisingly, technology (74%) and firm and vendor management (80%) were the most frequently selected CLOC competencies.
After gathering this preliminary information from participants, Deloitte researchers took a deep dive into key issues facing the legal operations industry. While all of the statistics provided in the Deloitte report provide insights into the current state of legal operations, four particular data points jolted the industry.
These notable statistics are as follows:
75% of Legal Departments Are Using 5+ Technologies
Three out of four legal departments rely on at least five different technologies to support their legal operations. Mastering even one or two systems requires hours of commitment and a willingness to adapt. It is unreasonable to expect legal operations teams to become skilled with five different programs.
This issue is only one challenge that arises when legal departments rely on too many disjointed technologies.
These technologies cannot share data as effectively as an all-in-one entity management software solution. Even if legal professionals do become skilled in five or more technologies, they will undoubtedly have to engage in an excessive amount of redundant work.
Transitioning to a comprehensive entity management solution will enable legal operations teams to optimize employee buy-in to the new technology. Making the switch to a cohesive platform will also eliminate data silos and ensure that all personnel have access to up-to-date, accurate information.
46% of Respondents Say They Don’t Have the Right Tools
Even though 75% of legal departments are using five or more technologies to facilitate core business processes, nearly half (46%) of respondents to the Deloitte survey say that they don’t have the right tools to efficiently carry out their responsibilities.
The presence of multiple technologies demonstrates that many organizational leaders are willing to invest in software to modernize operations. But even with these solutions, nearly half of respondents lack essential tools. This is evidence that business leaders are clearly choosing the wrong solutions.
Oftentimes, legal teams are provided with a lineup of software solutions that were not purpose-built for entity management. As such, this software may lack key functionalities that legal operations departments need to fulfill their responsibilities and optimize efficiency.
Once again, modern, cloud-based entity management software presents a viable solution. Such a platform includes a comprehensive suite of tools and capabilities designed to streamline everything from compliance to tax preparation to entity management.
40% of Respondents Report that Their Organizations Are Investing in Antiquated Tech
Of the four statistics highlighted in this list, the number of organizations investing in antiquated tech is particularly concerning.
Investing in and deploying new technology is resource-intensive. Organizations must purchase licensing agreements, create a deployment game plan, provide staff with training on the new software, and allocate in-house or third-party IT personnel to oversee the implementation of the product.
While organizational leaders surely count the costs of a technology investment before making a purchasing decision, four out of ten are selecting software that is already antiquated.
Although some leaders may view this as a shrewd cost-saving maneuver, it will cost their organization more in the long run. Aging technologies simply cannot yield the productivity and efficiency benefits of current cloud-based entity management software.
This type of software can offer legal operations teams a viable technology solution for years to come. Because it is based in the cloud, the technology can continuously be improved upon and modified to meet the needs of teams in the ever-changing legal operations landscape.
57% of Respondents Cite Lack of Adoption and Change Management as Top Concerns
Deloitte researchers found that technology costs were not among the top concerns that organizational leaders experience when exploring new software solutions. Instead, company leadership is far more concerned about a lack of adoption and change management.
A lack of adoption threatens to diminish an organization’s return on investment when it deploys a new entity management software platform. It can also lead to friction in the workplace, especially if some staff cling to outdated processes and business practices.
Change management is the process of overseeing and managing the rollout of new technology. Overseeing the deployment of new software can be quite stressful, as any unexpected interruptions can decimate productivity and lead to costly delays for legal departments.
Fortunately, organizational leaders can address both concerns by opting for the cloud-based entity management software system offered by Athennian. Our solution has an intuitive, user-friendly interface designed to maximize employee buy-in and expedite the adoption process.
As a cloud-based solution, Athennian’s technology suite can also be quickly and efficiently deployed in order to minimize the risk of business disruptions during the transition.
Stay Ahead of the Curve with Athennian
These surprising statistics reveal that the legal operations sector is beginning to embrace modern technologies. However, many organizations’ digital transformation efforts are sluggish and hindered by missteps.
You can avoid those same missteps and gain a competitive edge by exploring Athennian’s entity management software. Our leading-edge solution replaces multiple antiquated technologies and serves as a single source of truth for your legal operations team.
Connect with an entity management expert today to arrange your custom demo.