The Strategic Role of a Legal Operations Analyst in Modern Business Practices

As modern businesses face the pressures of global business practices, academic degree programs have adapted accordingly. The latest career offering is an advanced degree in legal operations management for people who want to fill a need for business-savvy individuals who have a solid grounding in multiple aspects of the law firm. Though the position itself differs widely from one organization to another, a professional in legal operations generally has expertise in several disciplines. These could include information technology (IT), knowledge management, planning, pricing, finance, procurement and process management. While the title comes directly from corporate America, it is a trend that has also made inroads at law firms, which otherwise have generally been resistant to corporate-style management. The position has roots in global best practices for running businesses, and unusually, it is emerging as a solution to a problem that is quite similar globally. Both law firms and corporations are dealing with the same economic realities. They face rising costs, while, at the same time, having to drive more value, often with fewer resources. It is no surprise that legal operations analyst is a position that is still rapidly growing in corporations and has now made its way into law firms. As with other positions that are adapting to the new global economic realities, this one is increasingly being eliminated or automated, with software and robots connected to databases that automatically pull up data for staff members. This does not mean that legal operations is going away anytime soon, though. The position is growing both globally and locally. For businesses, this can mean having employees work out of their homes, or working with lawyers and paralegals remotely. For all businesses, it means being more nimble than ever before. The knowledge economy is far more volatile than most businesses realize. Part of this is due to the rapid advancement of new technologies. Those that fail to adapt will fall behind as those that embrace technological change will be able to grow and thrive, both globally and locally. A legal operations analyst understands this and can help companies utilize new technologies to stay ahead of their competition. Overall, there are many benefits to using legal operations analysts. In fact, the strongest argument against employing them is that they are not a literal legal position, but rather a business position. Nevertheless, legal operations analysts have unique skills that can help law firms and corporations to take on new challenges. They understand legal costs, human resource management, technology, pricing, knowledge management, marketing and more. By combining these disciplines, an experienced legal operations analyst has a holistic understanding of how legal challenges affect the business as a whole. They can then develop strategic plans. For example, to improve profitability, they can implement new technologies that will increase efficiencies and create long-term savings. In addition, by improving business strategies, legal operations analysts are able to grow businesses. They can help companies to find new markets, potentially in foreign countries or even continent-wide, and boost revenues through strategic expansion. Ultimately, by using legal operations analysts, businesses can better compete in the global economy. Few businesses can directly measure the effects of a single hire on their bottom line, but it is clear that an effect exists. A legal operations analyst may not be a position that is appropriate for every business, at least not right away. However, in general, those businesses that have the highest profit margins are likely to benefit the most from hiring a legal operations analyst. Law firms are a prime example. The average profit margin at a successful law firm is 19.8 percent, while the average for a company is only 5.5 percent. This means that law firms have a lot to lose, and for that reason, they are adapting to new realities. For those who can withstand the pressure of the global economy, the good news is that all signs suggest that the economic benefits of legal operations will continue to grow.