Legal departments within corporations are grappling with negative perceptions from other parts of the business, an issue highlighted in a study recently published by Thomson Reuters. The study, titled “2024 State of the Corporate Law Department”, pinpoints one of the key factors reinforcing this perception as the methods by which these departments measure their performance – primarily costing and legal spend metrics.
The issue at hand is the unintentional reinforcement of the image of the legal department as a cost center, instead of presenting it as a creator of value. One of the classic dilemmas faced by legal departments is demonstrating the value of their work when it often involves preventing negative outcomes, such as a lawsuit not being filed or a regulatory fine not being levied.
In order to counter this perception, the study suggests legal departments undertake significant image overhauls. This would involve re-evaluating the way their performance is assessed and communicated to the rest of the business, potentially shifting the focus onto the value they bring to the table, rather than on costs alone.
For more details on this topic, you can read the full piece on
Law.com.