CLOs, legal ops, and CLM software: The trifecta transforming law 

Formalized lawyering has been around since the time of Ancient Greece and Rome, starting with friends pleading the case of other friends. Eventually, efforts were made to standardize and monetize the art of lawyering. In the Middle Ages, lawyers focused on the church and its laws. Jumping to the new world, no formal training was required of lawyers until 1761. This is the same year that ethics were established for lawyers to follow. 

Much has changed throughout the existence of the legal profession. Like other times in history, technology has exponentially decreased the time from innovation to realized benefits. Think of the evolution of the horse and buggy to the automobile, or computers that took up whole buildings, then desktops, and now more computing power than ever before held in our hands  

Legal technology is no different. Dictaphones were all the rage in the 1950s to streamline document creation. Computers became networked in the 1960s, then in the 1980s, personal computers and the internet started hitting legal offices. The 2000s saw a rise in the amount of digital information, which ushered in technology-assisted review to expedite the document review process. The 2010s was when the boon of legal tech startups exploded.  

Contract Lifecycle Management (CLM) software was an outgrowth of the technology boom and has grown from a repository of data to workflow of the contract lifecycle to integrated e-signatures, and now more and more artificial intelligence embedded that provides guidance and suggestions.  

But technology wasn’t the only thing morphing and growing, different roles in Legal were being created to take advantage of the industry changes. Hence, the rise of legal operations.  Growing all legal roles successfully and increasing their impact within an organization, CLM software is a critical component to create this momentum and deliver efficiency. 

When legal ops first appeared on the scene, its practitioners were focused strictly on risk management, but over the years the role has morphed into driving efficiency and cost reduction. Solidifying its relevancy to Legal, the Corporate Legal Officers Consortium(CLOC) was founded in 2016 and a legal operations section within the Association of Corporate Counsel was created. The role continues to evolve and is becoming more of a strategic partner to Legal. While still “doing,” legal ops is now also about “thinking” — as Kim Wolfe pointed out in a recent webinar. 

We find that as time continues to march on, both technology and legal roles are continuing to evolve and helping each other to do so.  

Take the role of the Chief Legal Officer (CLO). Historically, the intent of the corporate legal department and its leader, the General Counsel (GC), was to provide legal services, assess and manage risk for the organization, and typically report to the Chief Financial Officer. In the past few years, however, more and more GCs are heeding the call to become CLOs. The corporate legal role has broadened to be part of the inner circle that works on business strategy, with a seat alongside the CEO, but is still responsible for the origins of the role such as providing legal services and assessing and managing risk. Many times, there are now both the GCs and CLOs.  

Zac Ferren, in-house practice leader and legal recruiter at The Lion Group, LCC was quoted in a Law360 article saying, “The CLO’s focus is more on helping the company grow and succeed, while a GC may be more focused on preventing things from going wrong.”  

With a much broader corporate legal scope, you need a great team behind you to take care of the day-to-day legal aspects of the business so that a CLO can help run the business and contribute to the overall strategy. This introduces the continuing and growing need for efficiency – especially since the median number of total legal staff for corporations is seven, mostly made up of lawyers. Legal ops is often not a defined part of the team unless your organization has a revenue between $1 billion and $5 billion. Efficiency is still the key, and technology is the best solution for it to be accomplished.  

The CLO ascension along with the ever-growing importance of legal ops, is a bit like being rock climbing partners, as one ascends the other person helps. They both eventually end at the top of the mountain. Both CLOs and legal ops are becoming more and more critical to organizations as they grow and with this criticality comes the necessity of CLM solutions. The interdependent relationship between the CLO, legal operations, and CLM software has driven growth within legal departments. This synergy continues to grow the need for better data management and operational efficiencies, enabling the head of legal to evolve into a strategic advisor, while legal operations manages the day-to-day needs. This ongoing cycle of interdependence continues to shape and expand the role of Legal. 

Conclusion

In conclusion, the legal profession has undergone significant transformations from its early days in Ancient Greece and Rome to the modern era. The evolution of technology has played a crucial role in shaping the legal landscape, driving efficiency, and creating new roles such as Legal Ops. The rise of the CLO reflects the expanding scope of corporate legal departments and as technology continues to advance, tools like CLM software become indispensable, fostering interdependency between CLOs, legal ops, and technological solutions. This synergy not only enhances the efficiency of legal departments but also solidifies their strategic importance within organizations, ensuring that the legal profession remains dynamic and forward-thinking. 

To learn more about the evolving role of the CLO and legal department, check out our webinar: “Envisioning Tomorrow: The Role of GC/CLO Over the Next 5 Years”