The illusion of innovation: On its own, a CLM is not enough
Many in-house legal teams start their technology innovation journey by implementing a Contract Lifecycle Management (CLM) solution. It’s an understandable choice, as contracts can make up a significant portion of legal work and a CLM solves problems that are tangible and visible to the entire business.
While implementing a CLM is an important step forward and one worth celebrating (especially when many teams are yet to advance modernizing their operations) unfortunately, for some, a CLM is also where their innovation journey ends.
The value to the business of having an in-house legal function is not just in its ability to draft and review contracts. Its value extends far beyond to include broader business concerns such as compliance, disputes, risk mitigation, and governance – a diverse range of issues that require in-depth legal and business expertise and sound judgment.
Such issues may have consequences that affect the very foundation of the business itself. And while the legal work required to address them might not be as visible or tangible to the business as contract workflows, their impact is immense. It is only by managing matters effectively that legal can ensure that the wheels of the business continue to turn smoothly, avoiding costly and damaging outcomes.
This is why a matter management solution is a critical component of a modern in-house legal function, even more so than a CLM – it captures the breadth and complexity of the issues legal handle daily, providing structure and visibility to this vital work that keeps the business moving forward. Matter management complements contract management, but it is even more fundamental for the legal team to function effectively and to demonstrate its value to the business.
The limitations of a single solution
But let’s be clear: implementing a single system, whether a CLM or a matter management solution, is not really an innovative move – nor should it be the end goal. It’s a step in the right direction. But stopping there creates the risk of falling short of what your business truly needs from its legal team.
“Implementing an individual solution is like tuning a single instrument in an orchestra that leaves the others out of sync. You might get a clearer note, but without the ensemble, the overall performance lacks depth and resonance.”
A single-function tool will only solve a specific, immediate problem – a CLM can streamline contract workflows, and a matter management platform can help organize the chaos of legal intake. But focusing on implementing individual solutions is like tuning a single instrument in an orchestra that leaves the others out of sync. You might get a clearer note, but without the ensemble, the overall performance lacks depth and resonance.
Businesses today operate in a fast-paced and interconnected world, and legal teams must enable their organizations to succeed by implementing systems that do the same. Anything less leaves you reacting to issues instead of anticipating them.
True legal innovation means ensuring that every aspect of your business’ legal operations is integrated to create a seamless flow of data across all legal touchpoints: contracts, compliance, disputes, spend, and risks.
So, if a CLM or matter management system is the only tech you invest in, you’re selling your business and your team short. Instead, consider this option: a legal workspace with internal matter management at its core.
Why a legal workspace is the way forward
What is a legal workspace? It is a modern enterprise legal management solution (ELM) purpose-built for all in-house legal workflows.
A legal workspace seamlessly connects matter management, contract management, spend management, document management, and knowledge management with automated workflows and data capture across all of those functions. In addition to the integrated, full-features solution, two key elements of the legal workspace are worth emphasizing:
- Modern user interface: An easy to use and intuitive user interface is essential because it drives adoption, reduces training time, and ensures that teams can quickly and effectively leverage the system’s full capabilities.
- Matter-management centric: This means matter management is at the core of your legal operations. Unlike legacy systems that prioritize e-billing, spending, and external law firm management, or CLMs with lightweight matter management features tacked on, a matter-centric approach ensures seamless handling of all issues without the clunkiness and inefficiency of bolt-on solutions.
Why a matter-centric legal workspace is the best approach to innovation:
- Efficiency and comprehensive data: Without matter management, true efficiency and data visibility are unattainable. Internal workflows across all elements of your operations, including intake, spend, contracts, and documents, are streamlined and fully supported, enabling your team to focus on delivering value rather than wrestling with inefficiencies.
- Breaking down data silos: A legal workspace seamlessly connects matter management, contract management, spend management, document management, and knowledge management, with automated workflows and data capture across those functions, breaking down the data silos created by single-purpose tools. This connectivity empowers legal teams, providing them with the clarity and efficiency needed to work cohesively across all areas of the business.
- Unlocking AI’s full potential: AI thrives on comprehensive, well-organized data. A legal workspace provides the unified dataset AI needs to analyze patterns, predict risks, and deliver strategic insights that would otherwise be impossible to uncover. Which means that instead of legal teams reacting to challenges, they have the means to proactively shape strategy and drive business value.
Don’t just keep pace, lead the way
A legal workspace represents innovation because it builds a legal function which is as dynamic and interconnected as the business it supports.
So yes, celebrate the steps you’ve taken. Adopting technology is a move in the right direction, and it puts you ahead of those who continue to stand still. But don’t stop there. Your business needs more than incremental improvements. It needs a legal team that sees the big picture, that embraces the power of integration and isn’t afraid to push the boundaries of what is possible.
The future of in-house legal isn’t about keeping pace, it’s about leading the way.
Recommended resources
To learn more about the legal workspace, and the importance of innovation for legal teams and legal operations, check out these resources:
- My new book, “How to make in-house a powerhouse: a revolutionary way of working for in-house legal teams”: Provides a framework with practical actions that you can take to transform your legal function from being reactive and overwhelmed with low-value work, to a value-adding function that drives business strategy and success.
- Connected legal function playbook: Your guide to becoming a more productive, engaged and impactful legal team in an increasingly complex legal environment.
- If you’re new to legal technology or operating without it, check out this article I wrote about my personal journey.
And if you’re interested in learning more about matter management solutions, check out our dedicated guide and upcoming webinars:
5 steps to better legal matter management
Mastering Matter Management
