Professional Documents
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Scaling A Legal Function
Scaling A Legal Function
function in SaaS
Contents
Strategy
Approach
Collaboration
People
Process
Legal Tech
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Scaling the legal function in SaaS
There’s no denying the boom in software over the last decade. As barriers
to entry decline and demand for convenience accelerates, more and more
tech companies are appearing to address the ever-growing market for
online services.
However, the very benefits that generate demand also make SaaS a highly
crowded market. To succeed (and to justify their rising valuations to
investors), SaaS companies must delight their users, establish unique
competitive advantages and create a culture that retains top talent and
encourages innovation.
Not only do legal departments protect the business from harm’s way, but
in-house professionals are increasingly adopting a strategic advisory role to
spot opportunities and better prepare for scale.
That said, despite significant investment across the business, the legal
department tends to remain lean, with disproportionately low growth
in headcount.
For this reason, we’ve created this guide that covers the building blocks of a
scalable legal function. I hope it will provide you with the foundations to set
your legal team up for scaling success.
Thibaut Caoudal
Co-founder @ Leeway
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Strategy
The purpose and priorities of scalable legal teams.
The building blocks of a scalable legal function | Strategy
Traditionally, in-house legal teams could Operating strategically means that Legal
focus on the job at hand. In super-fast understands where the business needs
SaaS companies, however, in addition to to be in 3, 6, 12 months’ time and
executing the daily tasks, in-house legal contributes to this by addressing any
professionals will find themselves having legal roadblocks and protecting the
to look forward and plan accordingly. company along the way. It ensures that
all actions are focused on the activities
At its core, a strategy is a plan of action
that have the greatest business impact.
designed to achieve longer-term goals.
It outlines the approach and tactics
required to move closer to an overall How to ace your strategy
objective that defines legal success.
Implement legal OKRs
Now let me stop you right there before
In addition to setting their goals (or
you run off and write a concrete
KPIs), best-in-class SaaS legal teams also
strategy on a static document.
set OKRs to better articulate the value
For scaling legal functions in SaaS, your of the legal department, enable greater
strategy should be around thinking and focus, and more agile working.
acting strategically, putting the relevant
OKRs, which stands for Objective and
tactics in motion to enable this, and
Key Results, are a goal-setting tool that
keeping wider business goals front-of-
inspires teams to set ambitious goals
mind at all times.
while articulating the granular stepping
Being strategic means having clear goals stones needed to achieve them.
and a plan of action to achieve them.
Used by top tech companies such as
More importantly, these goals must be
Google, Spotify, and LinkedIn across
aligned to wider business objectives.
their product, tech, sales, and marketing
It means prioritizing strategic matters teams, OKRs are an increasingly
and adopting relevant processes, tools, important tool to articulate the value of
and technology to free up capacity to the legal department in a language that
do so (more on how to do this in the the business understands.
following sections).
You can learn more about OKRs and
access our free template here.
Why is strategy important?
In SaaS companies, the success of the
legal function is directly linked to the "You really need to understand
clarity around and execution of its the business model as well as the
strategic frameworks. emerging trends and how we can
tackle these."
As SaaS business models enable them to
be incredibly agile, it’s crucial for Legal Senay Gurel
General Counsel @ Voodoo
to have a mechanism in place to keep
up with changing business priorities.
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The building blocks of a scalable legal function | Strategy
As it forces you to look to the future, To scale with the business, legal teams
legal teams working to a roadmap have should conduct regular strategic reviews
the foresight to put things in place today to assess and update how they work and
that limit blockers in the future. what their focus is in line with current
business priorities.
The clear direction of travel also helps
to secure a budget for specific projects Successful reviews are conducted with
or resources as it's easier to articulate the foresight of the legal roadmap and
legal requirements aligned to business complemented by the execution and
needs. See the simple example below. prioritization given through legal OKRs.
Setting priorities & Review Q4's OKR results Review Q1's OKR results Review Q2's OKR results Review Q3's OKR results
tracking success Define Q2 OKRs Define Q3 OKRs Define Q4 OKRs Define Q1 OKRs
If you’re working in a SaaS company, While this can feel like a challenge at
you’ll know that things move fast. SaaS first, approaching it with proactivity and
businesses bring out new products and optimism means you will be able to
features at pace, integrate with third adopt more efficient processes to drive
parties, raise investment, and more. better results - a key component of
scaling legal functions!
With this in mind, the legal team’s
approach must be agile, with a balance A common misconception is that doing
between proactivity and reactivity. more with less is about cost-cutting.
While this may be the case in some
While your strategy is a plan of action to
instances, it's more about optimizing
achieve your goals, your approach is the
resources - both human and tech - with
way in which you deal with the situation
a view to driving greater business value.
in front of you. Setting an effective
It also involves avoiding any activities
default response mechanism is key to
that are not aligned with the strategy
scale a legal function.
and objectives of the business.
While your strategy means you have the "If you're lean and nimble, you're
map towards success, your approach is able to move faster in different
the difference between rigidly following directions. Speed is always going
a plan and discovering scalability to be an advantage so this is key
through agility and clever resourcing. for scaling companies."
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The building blocks of a scalable legal function | Approach
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Collaboration
Legal in the context of a wider scaling business.
The building blocks of a scalable legal function | Collaboration
Collaboration
In SaaS, cross-function collaboration is Therefore, Legal must be proactive in
critical to ensure company-wide getting the information they need to
understanding and the smooth running prepare and execute strategically.
of external launches and internal Not to mention, if you successfully
updates. achieve frictionless collaboration as well
Whether you’re a one-person legal as high-impact output, you can rebrand
department or a larger legal team, Legal as a business enabler.
collaboration is a key characteristic of
scalable legal functions and high-
performing teams. This means the legal How to ace collaboration
team must collaborate effectively
internally while also working closely with Set regular check-ins with other teams
other departments to achieve common Build close relationships with business
goals. teams and secure time to understand
Collaboration for scale also requires the company’s plans in the short term
strong leadership from in-house and long term. This will enable the legal
counsel and this must be delivered in a team to prepare and act in line with
way that is easy to follow for the rest of these goals.
the business. In addition, legal teams operating in the
SaaS space will receive an ever-
Why is collaboration vital? increasing volume of requests. Regular
conversations with other departments
With an extremely fast pace of business, will help you understand what is driving
legal teams in SaaS must collaborate well the influxes in demand so that you can
or risk slowing down the business, reassess, prioritize and implement
putting the company at risk, and wasting processes or technology to reduce the
time on tasks that add little to no value. amount of legal intervention required.
Effective collaboration also helps the These check-ins can be as simple as
business understand the value of the attending a meeting they already have in
legal function. With this knowledge, it place once a month.
becomes easier to secure additional
Legal budget and resources (a welcome
benefit for SaaS legal departments!).
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The building blocks of a scalable legal function | Collaboartion
People
To cope with fast growth and to It's important to note the difference
capitalize on opportunities, SaaS between growing and scaling. Growing
companies hire rapidly within business simply increases the legal headcount
teams. However, despite the rising whereas scaling increases the value of
workload, the legal headcount tends to the legal department without increasing
grow at a significantly lower rate. the costs to the same extent.
The legal team may consist of one or As other teams begin to hire rapidly, the
many people but the setup can include legal department has to master a lean
internal resource such as in-house legal approach. Understanding your
lawyers and legal operations options when it comes to resourcing,
professionals as well as outside counsel. and choosing the right fit for your
scenario is key to scale the legal
The key to scale is creating the right function in line with business growth.
legal structure for your specific goals
and plans.
How to resource your team
Why is the setup of your Finding the right balance
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The building blocks of a scalable legal function | People
'To hire or not to hire': a decision tree for scaling legal functions
No Yes
No Yes No Yes
Optimize resources
Yes No
internally
No Yes
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Process
Using processes as a lever for scale.
The building blocks of a scalable legal function | Process
Process
SaaS companies are full of innovative How to ace your processes
and streamlined processes, and Legal
should be no exception. Standardization
To implement automation, list what legal Give greater autonomy to the business
tasks take the most time. Often, these
Giving more autonomy to business
are lower-value but necessary tasks that
teams can free up Legal’s time from
ensure compliance. From here, explore
lower-value process-driven tasks and
what technology is available to automate
enable them to focus on more strategic,
this high-volume activity.
higher-value work.
For instance, you can automate the
While both standardization and
creation of routine contracts using an
automation will help give greater
automated workflow with contract
autonomy to business teams, legal tech
templates through Leeway.
solutions like Leeway present even
greater opportunities to streamline
processes and reduce manual legal
"If we all begin from the same workload.
starting point, particularly with The most obvious example is self-serve
regards to contracts that are contracts that enable business teams to
lower value and higher volume, generate certain contracts without the
the efficiency that we could gain need for legal intervention. The legal
would be immense." team maintains control over legal and
financial risk as contract templates are
Electra Japonas
pulled from a centralized library and
Co-founder @ oneNDA
approval workflows dependent on
defined conditions are set by the legal
team.
It is fair to assume that SaaS companies Then you can begin to explore what
are open to adopting new technologies. solutions will work best for your needs.
In fact, generally, business teams such
For scaling legal functions, there are a
as Sales, Marketing, Finance, and HR will
number of key areas to think about.
likely have adopted a dedicated tool for
their function. Yet, many in-house legal Future-proof solutions
departments, even in SaaS, are still not
In SaaS, things move fast. This is why
experiencing the benefits of a dedicated
when selecting a piece of legal tech, it's
legal platform.
important to consider the direction of
Legal technology, or legal tech, refers to the business, its future needs, and the
the use of software to enable legal functionality required to support it.
services and support. In terms of scaling However, to get the ball rolling, start
the legal function, it presents the small with a simple use case (e.g. NDAs
opportunity to improve processes and or HR contracts).
collaboration in such as way that
enables the legal team to focus on Usability for non-lawyers
strategic matters while maintaining
As we’ve explored, in-house counsel
visibility over legal and financial risks.
must work closely with business teams
to enable scale and deliver impactful
Why is legal tech important? outcomes. Therefore, technology
implemented should also be accessible
To scale the legal function, adopting
and easy to use for non-legal
legal tech is an absolute must. The
professionals.
manual management of contracts is
simply not a viable option as you scale. When researching your options, think
Therefore, we would advise that you about the user experience, language
embrace legal tech as early as possible used, and functionality required for
as, without it, it'll be near impossible to business teams also. This includes how
scale the legal function. well the tech will integrate with current
tools in use (e.g. Salesforce, Zapier and
When it comes to scaling, tech is all
Google Drive).
about optimizing your time and
managing risk. This means freeing up
time to focus on higher-value matters
"Automation of processes is a
by minimizing high-volume, low-value
must! Tools that help you
tasks, as well as increasing the visibility
negotiate in real-time without the
of legal and financial risk.
need to exchange documents
over emails and taking loads of
How to assess legal tech time are also beneficial."
Firstly, using process mapping, identify Lyuba Popova
exactly what your needs are. Senior Legal Counsel @ Paysafe.
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The building blocks of a scalable legal function | Legal Tech
In addition, aim to involve Finance and IT In addition, you might focus on metrics
from the outset. They will reap benefits such as time saved by the automatic
from the tool and can support in generation of contracts and approval
building the business case to invest. workflows, or average time to signed
contract, as well as gathering anecdotal
insights from the business users.
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The legal function
maturity model
Preparing to scale
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Appendix
The summary of bits the bobs mentioned throughout this guide.
Appendix
Useful resources
About Leeway
Leeway is the new way to manage the Based on these contracts, Leeway
entire contract lifecycle in a smart, accompanies you in the negotiation
collaborative, and secure way. through a shared platform that allows
you to collaborate easily with the various
We believe the current way of managing stakeholders, both internal and external.
contracts has a negative impact on the
business and productivity. It creates Finally, your contracts are connected to
losses through the time spent by the the platform and your data comes to life
various stakeholders involved in the to help you manage your business, not
contract lifecycle, the risks caused by miss any deadlines, and identify further
the manual management of opportunities.
negotiations, and finally the loss of
revenue as a result of unclear data
contained in contracts once they have
been signed. Want to learn more
With fragmented and complex stages about Leeway?
that make it impossible to be efficient,
there is a major opportunity to reinvent Discover our intuitive and secure
the contractualisation process. SaaS solution for contract
management in a few minutes.
Our technology allows us to drastically
reduce the number of round-trips
during negotiations by intelligently Request a demo
generating a first version of the contract
tailored to the context of the
negotiation.
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Appendix
Collaboration during the negotiation phase The exchanges are managed directly from
results in many versions of the contract the platform and all modifications are
bring shared in email chains. automatically recorded, remaining
accessible at all times.
Each contract is starting again and does not The lawyer is assisted throughout the
capitalize on the company's negotiation contract revision phase, with automatic
history. suggestions based on their negotiation
history.
The data in signed contracts is not usable All contract data is entered only once in
for the company because the contracts are the contract and is automatically tracked
stored in PDF format. over time.
The signed contract is stored randomly, All strategic company documents are
sometimes on a drive, sometimes locally accessible at the click of a button and
and it takes a long time to find it. access is managed with confidence.
Lawyers struggle to justify the value of their Lawyers can easily extract all their data
work to their superiors. and analyse the impact of their actions
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