For weeks, your team has been running on steam trying to close out the year on a good note. Your volume of work has been steadily increasing, which means the business is doing well, but it also means you’re burning the candle at both ends to get it all done. It’s quickly becoming overwhelming, and you know you need help. Unfortunately, as sympathetic as the CFO is, she probably won’t accept your gut feelings and exhaustion as a reason to increase budget. This is why you need solid data to justify your requests and ensure effective legal resource planning.
Here’s how you make the case for increased headcount with legal resource planning.
Types of data to collect for legal resource planning
Data shows you what’s happening in your legal team, where you’re spending your time, and where you’re falling behind. The right data can help you uncover whether you need additional headcount, technology to supplement your efforts, or both.
Some examples of metrics you can collect:
- Outside counsel spend
- Volume of contracts
- Turnaround times
- Team members assigned
Outside counsel spend
Many in-house teams depend on outside counsel for support in matters outside their areas of expertise or capacity. One sign you might need to hire additional headcount is when spend on outside counsel consistently outpaces budget. At that point, you can work with finance to compare numbers and make the business case for adding headcount and keeping the value in-house.
Volume of contracts
Another metric to justify additional roles when resource planning is contract volume. The number of contracts finalized and executed over a given period can tell you how much business your company is closing, and how many hours you’re spending to accommodate the increase. Let your data tell the story of how an extra set of hands could have helped close even more deals.
Turnaround time
High turnaround times are an indication that you need extra help. This could be because of manual processes, bottlenecks, or a team that’s spread thin taking care of a million other things. The longer contracts take to finalize, the longer it takes you to recognize revenue and hit your targets. Leverage turnaround time data with finance to show how the business is impacted without additional headcount.
Who is doing what
Along with the types of requests that come across legal’s collective desk, track how each teammate spends their time. What are they working on? How long does each task take? Is their workload at capacity or do they have space? With data to show that each lawyer is already swamped, you can make a strong case for a new hire.
How technology can help
Manual processes won’t get you the data you need to properly do legal resource planning. With legal technology like contract lifecycle management (CLM) and legal project management, you can track key metrics and generate reports to help you make your case. Plus, the more you use it, the more useful data you collect, so it becomes more helpful over time.
Takeaways
Legal resource planning is essential for all in-house teams. By taking stock of what you already have, you gain great insight into what you need more of and what the outcomes could be. Use metrics around contract volume, turnaround times, and team assignments to tell the story of how well your team is performing and what resources you need to keep it up.
See how LinkSquares CLM can give you the data you need. Contact us today.
