Focus On…Strategic planning and legal operations – changing practice

Effective strategic planning and legal operations are essential to every modern legal department. As a team we realised some years ago that we needed to change the operating model: from a reactive to a proactive legal department, from a cost centre to value creator. A bottom-up approach has been chosen. The team defined the legal governance powerhouse: purpose, mission, strategy, mandate and service portfolio, organisation, delivery and sourcing model, operations. All team members are still on a journey transforming the department to achieve operational and business excellence. However, we can already state that we have built competitive advantage and created a better experience for our team and internal stakeholders.

The strategy of the legal department shall be aligned with the company’s one, and with the need of key business stakeholders. The department strategy should also consider specific legal needs such as risk mitigation measures. The strategy should provide a clear roadmap to deliver on the business and legal goals. Defined objectives and initiatives should then be clearly communicated within the legal team and to the key business stakeholders. Make the initiatives SMART — specific, measurable, actionable, relevant and timely. Key to success is the early-stage buy-in from business partners and progress tracking. Team leaders should follow up regularly with team members on individual initiatives. If strategic initiatives are not executed by year-end, carry-over plans should be put in place. The budget process should also be linked to the strategic planning process.

Aligning the legal department with the organisation’s strategy takes time and effort. You need to understand the business, know the operating risks, and understand how they impact the strategic goals. You also need to consider the roles and responsibilities of team members and align their roles with the department’s aims. Furthermore, you need to communicate your objectives simply and clearly within the legal team and to the business. Finally, you need to track progress.