As we have written, data is essential to managing a legal department, raising the stakes for legal departments that have fallen behind.
In 2017, the stakes have never been higher.
According to a recent survey, 99% of legal practitioners noted that data analytics will be “indispensable” for legal departments over the next ten years.
These results are from the annual Advanced Analytics Research survey released by The Coalition of Technology Resources for Lawyers on February 8, 2017.
Analytics has come far beyond its initial uses for e-discovery, expanding to help managing budget and performance related to outside counsel legal spend.
- 71% of respondent legal departments expressed intention of spending money on analytics to manage their matters.
- 67% of respondent legal departments are using analytics to evaluate outside counsel rates.
- 60% are using analytics to track outside counsel performance.
It is not surprising that GCs are finding a budget for data and analytics. The cost of an analytics program is small relative to the savings on outside counsel spend.
Even more valuably, managing by data leads to a transformation in perception of the GC and legal department — from a cost center to a business-savvy steward of the company’s resources — that allows the legal department to do its core job more easily.