Partnering with Your GC to Do More with Less: A Legal Operations Guide

Over the last five years, legal operations leaders have become all too familiar with the challenge of trying to meet expanding workloads on a shrinking budget as executive leadership increasingly tightens the company’s belt due to economic pressures.

But you're not alone in this struggle—your general counsel (GC) is likely struggling to adapt to the same headwinds. Understanding the key pain points keeping your GC up at night can help you strengthen your partnership and find innovative solutions to navigate today's tricky legal landscape together.

Walking in Your GC's Shoes

A recent national study of 300 U.S. GCs, conducted by Wakefield Research and commissioned by Axiom, provides a glimpse into the perfect storm weighing on their minds:

• Budget Cuts: A staggering 96% of GCs report their legal budgets have been slashed, with most extremely concerned about lacking funds to invest in necessary talent and resources. Over 80% say they don't have sufficient staff to do their jobs effectively.
• Talent Turnover: Almost all legal departments are grappling with increased attrition over the past year. Most (80%) of GCs expect hiring freezes to continue yet worry the burdens on remaining staff will fuel further departures.
• Rising Outsourcing Costs: Reliance on traditional law firms is proving unsustainable as their rates climb 6-8% higher than last year. Almost all (97%) of GCs had to dip into depleted budgets for outside counsel. The top reasons for regretting hiring firms included time-consuming admin oversight, impractical advice, and lack of business knowledge.
• Emerging Tech Complexity: GCs anticipate skyrocketing demand for expertise in areas like AI, data privacy, and technology —the same domains where in-house teams are most lacking. Most plan to outsource these increasingly vital needs.

Amidst this whirlwind, GCs feel the weight of serving as stewards of company values and ethics. Even though 97% see themselves as primarily responsible for upholding integrity, every single one (100%) acknowledged the inherent tension with tighter purse strings. A third (34%) have already been forced to prioritize budgets over values, and nearly 60% expect they'll have to if the financial outlook dims further.

Extending an Olive Branch

As a legal ops leader, how can you build bridges with your GC to face these compounding pressures as a united front? Consider these strategies:

1. Boost budget efficiency:
   1. Implement data-driven approaches to allocate spend and track costs.
   2. Set transparent targets to optimize internal and external resource mix.
   3. Measure and quantify the value of investments using agreed KPIs.
2. Rethink hiring practices:
   1. Offer flexible staffing options to cover gaps without adding headcount.
   2. Streamline talent search with AI-powered platforms to engage vetted candidates.
   3. Onboard contract-based help to tackle backlogs while providing growth opportunities.
3. Modernize outsourcing:
   1. Explore contemporary solutions like on-demand teams and virtual firms.
   2. Partner with full-service ALSPs that provide quality, cost-effective coverage.
   3. Leverage digital tools for oversight and integration of distributed workforces.
4. Embrace emerging tech:
   1. Proactively upskill teams in high-growth domains like AI, privacy, and digital.
   2. Tap contract expertise to assess, implement, and govern new tools responsibly.
   3. Scale support flexibly based on evolving needs in nascent practice areas.

By taking the lead to expand your resourcing toolkit, you can flip the script from doing more with less to achieving more for less. Supplementing in-house assets with curated legal talent marketplaces allows you to engage the right people for the job at hand.

Whether you need a single specialist, a turnkey project squad, or full-service counsel, on-demand models offer the flexibility to align supply with real-time demands. You can quickly onboard exactly who you need via intuitive platforms without adding permanent headcount.

Such solutions enable you to boost efficiency and impact while significantly cutting costs. You can readily reallocate work that doesn't require firm-level attention, gain transparent data insights to inform planning, and expand capabilities in fast-moving fields.

Bringing Your GC Along

Still, change naturally breeds some discomfort, especially in the risk-averse legal realm. You may wonder how receptive your GC will be to rocking the boat by revamping resourcing norms. Luckily, research suggests GCs are more open than ever to innovative approaches in light of today's unprecedented pressures.

In fact, 85% of GCs say they would consider engaging alternative legal service providers for some needs if they can secure high-caliber support more cost-effectively. The keys are maintaining quality and oversight while making the numbers work.

Therefore, as you explore novel legal solutions, keep these guidelines in mind:

• Prioritize Reputable Partners: Seek out established players with proven track records for attracting and vetting top-notch talent across diverse practice areas.
• Provide Cost Comparisons: Illustrate potential savings compared to status quo firm rates. (Hint: Axiom clocks in up to 50% less.)
• Demonstrate Risk Management: Highlight supplier setups for seamless team integration, data security, quality control, and results tracking.
• Start Small: Propose a pilot in a discrete area like document review or due diligence to build confidence before expanding.

Leading the Charge

As a steward of legal operations excellence, you have a unique perch from which to identify gaps, scout fixes, and connect the dots between problems and solutions. By deeply understanding your GC's goals and fears, you can position yourself as a proactive, trusted advisor on making the most of your department's strained resources.

While the myriad obstacles may seem daunting, they also present an opportunity. You can seize this moment to optimize your legal ecosystem and lay a foundation for the future. Forging stronger ties with your GC around a shared vision for modernization will be essential for making headway as you define what the next era looks like together.

Want to learn more about how alternative resourcing models can help your legal department achieve more for less? Download our full whitepaper for added insights on the forces reshaping the legal industry and how you can stay ahead of the curve.