Gartner Says Legal Departments Are Not Realizing the Full Benefits from Technology Investments

General counsel (GC) must take three actions to improve legal technology outcomes in their departments, according to Gartner, Inc., a business and technology insights company.

“GCs and legal leaders often have a poor understanding of what is needed for effective technology implementation and use in their functions,” said Maesea McCalpin, Senior Principal, Research in Gartner’s Assurance Practice. “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.”

While legal departments have seen some good results from their technology investments, a September 2024 survey by Gartner of 140 legal functions showed that most have failed to capture the full benefits (see Figure 1).

“Laying the groundwork for digital technology adoption in legal departments means ensuring digital readiness in people, processes and data,” said McCalpin. “Just 23% of the departments in this study achieved high scores for digital readiness.”

Specifically, the following nine prerequisites of a digitally ready legal team have the biggest impact on the effectiveness of technology implementations:

• Data readiness: The data necessary to get value out of the system is (1) accessible, (2) high-quality and (3) routinely improved and maintained.
• Process readiness: The process that incorporates the technology system is (4) standardized, (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.

Gartner has identified three actions that GC can take that have an above average impact on digital readiness. GC should emphasize these activities throughout digital initiatives:

1. Address Employee Concerns About the System
   Only a third of legal leaders surveyed asked for employee concerns about using a technology system. Concerns can vary, ranging from worries that the system will create delays to fears that system reports will be used to over monitor employee performance.
   
   “GC should organize 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,” said McCalpin.
2. Anticipate Obstacles to System Implementation
   Thirty-seven percent of legal leaders proactively sought employee input on potential barriers to system implementation, meaning the majority had missed an opportunity for quick resolution of workflow and data challenges before the introduction of the system.
   
   “Potential issues include technology incompatibilities, outdated data, and inconsistent workflows,” said McCalpin. “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
   Six key data management responsibilities throughout a technology system's lifecycle include identifying data needs, mapping sources, addressing gaps, documenting processes, collecting data, and maintaining its quality.
   
   “To ensure these activities occur, GCs should integrate them into routine workflows by assigning responsibilities, incorporating tasks into performance reviews, emphasizing leadership's reliance on quality data, and embedding digital competencies into advancement criteria with training opportunities. This approach ensures effective data management and accountability,” said McCalpin.

Additional information is available to clients in the Gartner report Key General Counsel Actions to Improve Legal Technology ROI: Insights From Gartner’s Digital Readiness Survey. Nonclients can read Build a Digitally Enabled Legal Department.