Ten Things: How to Create a Plan for the Legal Department

Running an in-house legal department is not easy, whether you are the only lawyer or part of a team of 200. There is almost never enough money, staff, or time to get everything done. Priorities keep changing, so deciding where to focus your limited resources is always a challenge. 

Many businesses also see the legal department as just a cost or necessary evil, which can make the team feel ignored or left out instead of being part of the company’s core. Often, the legal department reacts to problems instead of planning ahead. 

I have faced all of these challenges and sometimes failed, during my career as an in-house lawyer. The key to success is making time to plan. Creating a strategic plan is not easy, but it is doable, and this article will show you ten practical steps to make it happen.

What is it? A legal department strategic plan is basically a roadmap that shows how the department will move from where it is now to where it wants to be. You can make it simple or detailed, but simple usually works best. 

Think of it as a written guide that helps the legal team use its resources wisely and stay in line with the company’s goals. A good plan outlines the department’s mission, goals, strategies, and specific actions, often with KPIs, over a set period like one, three, or five years.

Creating a strategic plan brings many benefits:

• Clear direction for the legal team
• Better risk management
• Stronger alignment with the business
• Improved efficiency in delivering legal services
• A way to measure performance and spot areas for improvement
• Boosted confidence from stakeholders
• A solid case for additional resources

How do you create a strategic plan?

First, commit to it fully. A plan only works if you and your team (if you have one) agree it’s important. If you do it grudgingly because someone told you to, it will likely fail or sit in a drawer gathering dust.

Next, assemble your team. Even if it’s just you, try to involve others if possible. Start with volunteers who are interested, and include a skeptic or two to keep the plan realistic. If you have a legal operations person or team, including them, they’ll be a huge help.

Then, set a deadline and schedule regular check-ins to track progress, answer questions, and keep things on track.

Keep it simple at first. Your first plan doesn’t need to be complicated; you can add details over time.

Finally, decide on a format: Word, PowerPoint, or a combination? Charts or graphs? If you’re a member of ACC or CLOC, check their templates. You can also find free templates online from Gartner, Xakia, Exigent, Lawcadia, or generic templates like OnStrategy, they’re a great starting point.

Assess Where You Are Today

Now that you’re ready to start creating your legal department’s strategic plan, the next step is to take a clear look at where your department stands today. This means creating a baseline so you know what’s working, what needs improvement, and which areas need focus.

Key areas to review include:

• People: Team skills, training needs, retention, recruitment, and succession planning.
• Services Offered: Litigation, corporate, employment, regulatory, M&A, data privacy, compliance, and governance.
• Future Service Needs: What services will the department need in the next 12, 36, and 60 months?
• Budget & Spending: Internal costs, external counsel, and vendor expenses.
  Operations & Technology: Current tools, future needs, costs, and solutions.
• Performance Metrics: KPIs, benchmarks, and measurements both required by the business and useful to the department.
• Action Plan: Steps to achieve goals over the next 12, 36, and 60 months.

These high-level topics give you a starting point for your plan. Remember, there’s no one-size-fits-all, your plan should match your department’s specific needs, not what someone else thinks it should be.

Prepare a SWOT Analysis

A great way to start building your strategic plan is to do a SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It helps you understand what your legal department does well, where it can improve, what chances exist to add more value, and what risks to watch out for.

You can create a separate SWOT for different areas, like people, technology, or services. A simple 2×2 table works well:

• Strengths: What your team does best.
• Weaknesses: Where you need improvement.
• Opportunities: Ways to grow or support the business better.
• Threats: Potential problems or risks to address.

This exercise is simple, but very effective. You can do it on a whiteboard, online tools like Teams or Zoom, or even with pen and paper. Filling in the boxes gives you a clear picture of where your department stands and helps guide your strategic plan.

Get Input from Others

This step is really important. Trying to create a legal department strategic plan entirely on your own is usually a big mistake. Instead, reach out to many people across the business to get different perspectives. Doing so not only gives you better information for your plan but also builds goodwill.

Start with your own team, a team offsite is a great way to gather ideas. Next, talk to senior management, key business group heads, and frequent users of legal services. Their input will highlight what works well and what needs improvement.

Also, involve your strategy team if there is one, and even outside counsel, who may have useful insights. Review the company’s business plans and long-term strategies, and combine that with your own ideas. This approach ensures your plan is practical, relevant, and fully aligned with the business.

Where Do You Want to Go?

A key part of creating a strategic plan is knowing where you want the legal department to go. Input from other teams and corporate strategy documents is helpful, but ultimately, the legal leaders set the direction.

Ask yourself: What are the department’s priorities? Do you want to grow the team, adopt more technology, focus on a specific area of law, or improve processes? Maybe you want to increase efficiency, provide more strategic value, or maximize the department’s impact. Often, it’s a mix of several goals.

The important thing is to define a clear vision for the legal department. This vision will guide your plan, helping you set meaningful goals and actions that align with the business.

What Do You Need to Do to Get There?

Once you know your goals, the next step is figuring out how to achieve them. Think about the steps, resources, and timelines needed to reach each goal.

For example, if your goal is to reduce spending on outside lawyers by 10% over the next two years, your steps could include:

• Bringing some work in-house by a certain date.
• Shifting work to more cost-effective law firms.
• Negotiating fee reductions with current law firms.
• Using AI tools to handle simple legal tasks.
• Training your team to use these tools effectively.

Make sure your steps are clear, measurable, and prioritized. The combination of goals and action steps creates a roadmap your team can follow.

Focus on Culture

A strong team culture is key to getting things done well. Your strategic plan should include how to attract, train, and retain the right people. It’s also about managing out anyone who doesn’t fit the team’s goals.

Drive and a positive attitude matter more than raw talent. People who take initiative, solve problems, and help others make the department stronger. Avoid order-takers who only do what they’re told, they won’t help the team grow.

Build a team that supports each other, takes responsibility, and contributes to solutions. A positive, proactive culture not only helps achieve strategic goals but also makes the legal department approachable and respected across the business.

Keep It Updated

A strategic plan isn’t something you create once and forget. It needs regular attention and updates as things change. Set a monthly check-in to review progress, deadlines, and challenges.

If a goal is no longer relevant, remove it and replace it with something that fits current needs. Share updates with your legal team and ask for their input, they often have useful ideas to improve results or speed things up.

By keeping your plan current, you ensure the legal department stays aligned with the business and continues to make progress. Flexibility and communication are key to a plan that actually works.

Market the Plan

Once your strategic plan is ready, don’t hide it. Make sure company leaders know about it. You’ve already asked for their input, now show them how their ideas helped shape the legal department’s direction.

A big part of being a successful legal team is promoting your work every day. Your strategic plan is a tool to demonstrate the value your department adds and to show that you are aligned with the company’s goals, not just focused on internal legal tasks.

Here’s how to do it:

• Present the plan to the C-Suite and other key leaders. Invite additional feedback and ideas.
• Use KPIs or metrics to track progress and report regularly. Some leaders may not care, but many will, and their engagement is valuable.
• Highlight innovation in your team. Show how you’re solving problems or using technology and best practices to work more efficiently.
• If a goal falls behind, explain your plan to get back on track. Leaders like to see solutions in action.
• Ask for ideas and suggestions. Show that the legal department values their experience and wants to collaborate.

By sharing your plan effectively, you position your legal team as a strategic partner, not just a support function.

Conclusion

Creating a strategic plan for your legal department may seem challenging, but it is essential for success. A clear plan guides your team, aligns legal work with business goals, improves efficiency, and demonstrates your department’s value. 

By assessing your current state, setting realistic goals, involving your team and stakeholders, and keeping the plan updated, your legal function can move from reactive problem-solving to proactive strategic leadership. Remember, simplicity, communication, and flexibility are key. A well-executed plan strengthens culture, builds trust with the business, and ensures the legal department is recognized as a vital part of the organization’s growth and success.

FAQs

What is a legal department strategic plan?
It’s a roadmap outlining the department’s goals, strategies, actions, and KPIs to align with business objectives.

Why is a strategic plan important for legal teams?
It provides direction, improves efficiency, manages risk proactively, and demonstrates the department’s value.

Who should be involved in creating the plan?
Include your legal team, key business stakeholders, strategy teams, and sometimes outside counsel for diverse input.

How often should the plan be updated?
Review and update regularly, monthly or quarterly to reflect changing priorities and progress.

Should the plan be simple or detailed?
Start simple, then add more detail over time. Clear and actionable steps are more important than complexity.

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