By Vince Venturella, Associate Director of Product Management
Legal operations professionals are living in a strange yet exciting time. We've all heard the mantra that they need to "do more with less," given economic uncertainty and ensuing budget restrictions. But that mandate is at odds with market realities like ever-increasing law firm rates, fluctuating regulations, and increasing matter complexity.
So where does the excitement come from? The "do more" portion of the above statement. Put simply, senior management expects the legal ops team to be a strategic asset, driving business just as much as managing costs and keeping workflows moving.
Still, as the saying goes, with great power comes great responsibility, and legal operations managers must be careful. They need to make the right choices—starting with the vendors they select, the technology they deploy, and the way they manage vendor relationships throughout the course of their engagements.
Changing dynamics leave little room for error
Of course, managing the vendor lifecycle appropriately has always been important, but external forces and shifting market dynamics have made the practice even more important. Value-based pricing—emphasizing results over billable hours—is gaining traction as corporations demand measurable outcomes, predictability, and alignment with business goals. At the same time, economic headwinds are prompting the C-suite to expect every function, including legal, to directly tie its work to those goals and deliver demonstrable business impact.
Add it all up and you get an atmosphere where there's very little margin for error. Now is not the time for legal operations groups to take chances with vendor management. They need to:
- Understand their organizational goals and align vendors’ work to those objectives
- Estimate the scope of matters as accurately as possible
- Identify the correct vendors to handle those matters
- Look for opportunities to reduce costs
- Track and measure their performance over time to ensure they’re hitting their marks and delivering value
Data-driven decision-making is the new reality
None of this is possible by doing things the old school way. They can’t choose firms based strictly on past relationships or because they have a good feeling about a vendor’s ability to deliver.
Today, hard and soft data are the foundation of good vendor management. Hard data captures metrics like cost, efficiency, cycle times, and matter outcomes, while soft data reflects collaboration, communication quality, and cultural fit. Together, these insights give legal ops teams the balanced perspective they need to make smarter, defensible decisions that have the support of the executive team.
Having the correct data opens a world of possibilities. Legal operations teams can have open and honest conversations with vendors, setting clear expectations, negotiating rates and fee structures with confidence, and securing greater predictability around costs and outcomes. Data also provides richer insights into performance trends, enabling teams to identify what's working, address gaps early, and strengthen partnerships that deliver long-term value.
Learn more
Check out my white paper to learn more about how to enhance vendor management with a data-driven approach and put your legal ops team in a stronger position to deliver measurable strategic value to the business: Enhancing vendor management with a data-driven approach
