Legal Department Models: Centralized, Embedded, or Hybrid?

According to an article by Brightflag’s Laura Gleeson, in-house legal department models play a critical role in how legal services are delivered across the business. Whether legal is to be centralized, embedded, or hybrid requires addressing the unique demands of each organization and determining the role played by legal ops.

In a centralized structure, legal is consolidated under a general counsel who provides oversight and coordination to the legal team. Legal ops supports this central operation, reporting directly to the general counsel. An embedded legal department model, on the other hand, places lawyers within business units, enabling cross-functional alignment and a deeper knowledge of operations. Legal ops’ role in this model is that of a shared service provider for the embedded legal staff.

A hybrid approach combines both models, embedding specialists while maintaining a central legal team. The structure is often suited for larger, global organizations. In this model, legal ops balances the needs of the central team with those of the embedded specialists. 

Selecting the right legal department models depends on several factors. How legal supports the company’s business priorities is paramount, since agility and alignment with strategy can define the department’s effectiveness. Scale also matters. Larger teams may require segmentation by region, while smaller teams often depend on generalists or outside counsel. Budget constraints influence whether to expand headcount or outsource work, and legal spend management tools increasingly play a role in optimizing costs.

Skillset analysis is another critical consideration. A gap in expertise can lead to expensive outsourcing, while investing in targeted hires or training can bring work in-house more efficiently. Roles within the department must align with both organizational needs and available resources.

Whether the organization employs a centralized, embedded, or hybrid model, an optimized structure combines strategic oversight, efficient resource allocation, and the innovative use of technology to drive results.

Legal ops leaders are currently leveraging tools like AI and spend management platforms to help teams deliver higher-value legal services while positioning legal as a proactive partner in business growth.