Legal Ops Needs to Evaluate Risk When Implementing Change

Legal Ops’ role is to maximize the value that has already been added to the business by the legal department. Unless the department is already adding the most value possible, change is necessary for improvement. Due to concerns about its impact on legal risks, however, change may generate discomfort and resistance among stakeholders. To successfully implement change, Legal Ops professionals must understand how to navigate and alleviate these concerns, according to an article by ACC Docket.

Risks are unavoidable in the legal world, with every process having an inherent error rate. The key is not to eliminate risk but to evaluate it compared to alternative courses of action. The benefits of the proposed change need to be accounted for, and the sacrifices and detriments of the status quo need to be identified.

Assessing risks involves considering both opportunity benefits and opportunity costs. A comprehensive analysis of the benefits of a proposed change should include immediate gains as well as long-term advantages such as faster cycle times, increased customer satisfaction, and continuous improvement. Even seemingly trivial gains can become significant over time.

Calculating the status quo’s expected value requires accounting for opportunity costs. Costs associated with manual processes — such as burnout, turnover, and lost business opportunities — are often overlooked. The resistance to change can be attributed to the risk-averse legal culture, where outcomes such as being found liable are considered “bad,” and winning and minimizing exposure are “good.”

Maximizing law department value-add involves a mindset shift toward embracing risk within acceptable limits. As change requires persuasion, Legal Ops professionals should proactively address fears and concerns about risk, enabling informed decisions that deliver maximum value to the business.