Despite artificial intelligence (AI) and other novel technologies bringing increased complexity and risk to organizations large and small, legal departments are still being forced to work within tighter budget constraints. These cost-cutting measures affecting most legal departments have intensified the tension between legal leadership and finance teams (and the GC and CFO).
Ideally, CFOs would allocate ample funds to legal teams, but economic realities necessitate difficult decisions. GCs report widespread resource shortages—ranging from budget, staffing, technology, expertise, and team organization—which hampers their ability to perform critical duties.
Consequently, the relationship between the legal and finance departments is increasingly strained. But as any CFO knows, a company’s success relies on the partnership between these two departments.
To address these challenges, CFOs and GCs must jointly seek out innovative approaches, solutions, and services that enhance flexibility, productivity, and efficiency, finding a balance that maintains risk management without depleting resources.
Access to the right legal expertise at the right time is crucial for most legal leaders, affecting their ability to efficiently fulfill their responsibilities.
However, recruiting the appropriate attorneys for the specific needs of the legal department often presents a significant challenge. CFOs can assist their legal teams when deciding on when and where to spend their legal budget, be it in-house, outsourcing to traditional law firms, or leveraging more efficient, modern solutions.
Consider alternatives to full-time hiring. GCs may be hesitant to increase full-time headcount due to the various, yet often transient demands, they face. While they require readily available expertise across numerous specialties, part-time support may be more cost-effective for intermittent needs for specific areas.
You can also rethink traditional resourcing options. Last year, many GCs resorted to law firms due to in-house expertise gaps. However, this approach is not always optimal, especially as law firm rates continue to soar. Outsourcing to law firms should be reserved for complex matters, while modern solutions can address routine legal needs more efficiently and affordably.
Chief Financial Officers can work with their GCs to examine modern resourcing solutions that allow for efficient management of legal work while avoiding both the cost and lack of expertise typically provided by law firms.
Leveraging flexible legal talent offers the ideal balance—access to necessary expertise only when needed while circumventing the costs and complexities associated with traditional law firms or recruitment processes. This strategy ensures the legal team remains agile and responsive to the organization’s evolving needs.
The bottom line: Leveraging flexible resourcing provides you with the perfect dynamic—getting exactly what you need only when you need it—without the cost or headaches of traditional law firms or hiring replacements.
As a savvy and forward-thinking executive, you can emphasize that legal departments can work better with modern, flexible business strategies, rather than sticking with the traditional, expensive, and inflexible model of the past consisting of permanent team members supported by expensive law firms. Addressing outdated resourcing strategies requires adopting solutions such as new technologies, building out the operations professionals team, and rethinking how and when to partner with modern legal service providers.
