While legal departments are adopting technology and achieving some results, they are not fully capitalising on the potential benefits of their technology investments, according to a recent report by Gartner.
Global research and advisory firm Gartner has identified that despite significant investment in digital tools, many legal departments across organisations face challenges in effectively adopting and integrating technology.
In a September 2024 survey of 140 legal functions conducted by Gartner, it was revealed that most legal departments have “failed to capture the full benefits” of the technology they have implemented.
Among the respondents, only 34 per cent believed the technology they implemented stayed within the originally agreed-upon budget, 33 per cent felt the system was deployed on schedule, and just 30 per cent said the technology met or exceeded its initial goals and objectives.
Maesea McCalpin, senior principal researcher in Gartner’s assurance practice, noted that many general counsel (GC) and legal leaders lack a clear understanding of what is required for successful technology implementation.
“GCs and legal leaders often have a poor understanding of what is needed for effective technology implementation and use in their functions,” McCalpin said.
“Many are unaware of necessary workflow changes, lack a realistic view of how systems can improve workflows, do not fully grasp the obstacles to implementation and effective use, and few have plans to address these challenges.”
A key factor in improving technology ROI, Gartner has identified, is “digital readiness”, which McCalpin describes as preparedness across three essential areas: “people, processes, and data”.
However, laying the groundwork for digital technology adoption remains a major hurdle, with only 23 per cent of legal departments in the survey scoring highly on digital readiness.
Gartner further broke down digital readiness into nine specific criteria that have the greatest impact on technology effectiveness:
Data readiness: “The data necessary to get value out of the system is (1) accessible, (2) high-quality, and (3) routinely improved and maintained,” it said.
Process readiness: “The process that incorporates the technology system is (4) standardised, (5) documented, and (6) routinely followed.”
People readiness: “Department employees (7) know how to use the system, (8) have the necessary resources and support, and (9) know their role in system implementation.”
To boost digital readiness and enhance technology outcomes, Gartner identified three critical actions general counsels should take:
1. Address employee concerns about the system
Only one-third of legal leaders surveyed actively sought staff feedback on concerns about new technology systems, which ranged from fears of workflow delays to worries about excessive employee monitoring through system reports.
“GC should organise listening sessions to try to resolve issues without compromising business priorities, demonstrate how leadership will use the technology and its metrics, and reinforce system use by clarifying expectations and accountability,” McCalpin said.
2. Anticipate obstacles to system implementation
The report revealed that only 37 per cent of legal leaders proactively sought input on potential barriers before rolling out new systems, missing opportunities to quickly address workflow and data challenges before implementation.
“Potential issues include technology incompatibilities, outdated data, and inconsistent workflows,” McCalpin said.
“Identifying these requires a broad group of stakeholders, including IT, data staff, legal operations, system users, and business partners. GCs should establish communication channels like implementation meetings, focus groups, and reporting repositories.”
3. Clarify responsibilities for data management
Since effective technology relies heavily on quality data, Gartner recommends that GCs embed key data management tasks – like identifying data needs, mapping sources, and maintaining data quality – into regular workflows and performance reviews.
“To ensure these activities occur, GCs should integrate them into routine workflows by assigning responsibilities, incorporating tasks into performance reviews, emphasising leadership’s reliance on quality data, and embedding digital competencies into advancement criteria with training opportunities. This approach ensures effective data management and accountability,” McCalpin said.
