OPS

Taking a Holistic View of In-House Counsel’s Role in the Business

Ken Crutchfield, vice president and general manager, LRUS Legal Markets, Wolters Kluwer Legal and Regulatory, U.S., discusses ways that corporate legal departments can optimize their operations, from budgeting and spend to the efficiency and success of business outcomes.

CCBJ: The pressure to manage the balance between cost and outcome continues to increase. What trends do you see in how corporate legal departments are budgeting and forecasting?

Ken Crutchfield: I believe the key is to think of budgeting in terms of productivity and leverage. The ability to identify tools and technology that make staff more effective and help them get the right outcomes is crucial. That’s really the area that I’m looking at as the pressure relief valve, if you will. There are a couple of actions that can be taken that tie into that idea. As in-house counsel, consider your stakeholders and customers – are there actions that you can take to offload work and empower them to be more self-service oriented, for example? Another important action is to consider key performance indicators (KPIs). If your organization does not have KPIs, perhaps it should.

If you are using KPIs, consider whether they really are measuring outcomes or if they’re just measuring activity. Measuring outcomes is much more important and impactful, and they may not necessarily be measured in legal terms. For a simple example, are there ways that you can enable more nondisclosure agreements to be completed with less involvement from the in-house counsel, making stakeholders more self-sufficient? Or, if you’re looking

at sales contracts, for example, can you turn contracts around faster to increase the close cycle of your sales team and increase sales productivity? Can you reduce the contract revision cycles? Increasing sales productivity or sales results are more meaningful KPIs than the total number of contracts negotiated, for example.

How can corporate legal departments work more closely with individual business units to achieve business goals?

It’s very important to set aside specific time to meet with business stakeholders and understand who your most important stakeholders are and build relationships with them. Make sure you understand their goals and objectives and needs – and consider what is strategic for the business. But also pay attention to the softer issues. What helps your stakeholders from a personal perspective or from a constructive political perspective? At the end of the day, business is still done between people, and having a good relationship in which both parties trust and understand each other helps to provide a more holistic and collaborative context, which I believe is very important.

For example, if a business stakeholder is going to make a bold move like integrating two business units that have been separate for a long time, and it hasn’t been done for a number of years because there was some risk or a particular issue, and now your stakeholder is looking to resolve that longstanding issue, consider how you can help make that move smooth and successful.

How can corporate legal departments work with other areas, business units, information technology, etc., to advocate for new systems and software processes?

Make sure you understand the business’s goals and needs. For example, with the pandemic, are there digital initiatives that are logical to align with in support of the

Despite the pandemic, every indication I see is that legal professionals are busy, both in-house and at outside firms.

broader business? Would aligning with broader initiative provide access to other budgets or create synergies that could be leveraged to benefit the broader business and the legal department? That’s a great opportunity to find common ground and leverage. I would also view budgeting as a process, not an event, even though 2021 budgets are already upon us. The wise corporate counsel department is thinking longer term and about the 2022 budget and the 2023 budget right now. Understanding what seeds should be planted, what outcomes are desired, and being able to communicate steps to achieve those outcomes even if you’re not making a formal request right now is important.

I would also emphasize the value of developing relationships here once more. As I said, business gets done between people. The more you understand stakeholders and their needs, the more you will be able to find that win-win. It takes time, and it takes an investment at a personal level, to be able to understand how to manage and operate within your broader corporate ecosystem, but it’s very much worth it.

How can research solutions and applications help in-house counsel better optimize their spending?

I’d really encourage counsel to step back and look holistically at their budget and activity. Are there tools that could help you spend your money more effectively? And then also, as part of that thought process, consider what the high-value activities that the department engages in, versus the low-value ones. Just because something’s been done in the past doesn’t mean that it has value or that

it’s even relevant anymore. Thinking about how to stop low-value activity or at least reengineer it is an important point to consider. And within that same frame of thought, there is also the question of the bigger buckets of people, of tools and of outside counsel. Consider if shifting a little bit of the budget from outside counsel, you could invest in some tools that would make your department more effective, whether it’s by implementing software such as a contract management system or some other initiative.

For example, Wolters Kluwer recently launched the Cheetah for Corporate Counsel solution. It includes a series of multistate surveys that can provide answers or better direct outside counsel spend on policy-related issues. Leveraging a collection of multi-state surveys or other practical content may allow your department to more effectively direct the spend when you need to go to outside counsel and achieve better results. Maximizing budget and leveraging tools can help your team step back and look more holistically, which can drive greater productivity and better outcomes with limited resources.

What trends do you anticipate over the next 18 months?

We conducted the 2020 Wolters Kluwer Future Ready Lawyer Survey earlier this year and uncovered a number of dynamics, including how technology is changing relationships between in-house counsel and their outside counsel firms, the demands of productivity and the need to get more done with less, and all the pressure that entails. So I believe we’re going to see work continue to move in-house or be reevaluated. People are busy. That’s a trend that

we shouldn’t forget, that there’s more work than ever for lawyers to do. And despite the pandemic, every indication I see is that attorneys are going to stay busy, both in-house and at outside firms.

It may feel like a time to switch into survival mode, but the savvy corporate legal departments will see these times as an opportunity. Should there be greater development of analytics for better decision-making? I believe you’ll see more emphasis on analytics and data driven decision making. I mentioned self-service earlier. Any place where work can be automated enables resource to be deployed elsewhere. In the end, if your department can understand the broader business goals and align to those initiatives, you can ensure better results. That requires an investment in relationships. An understanding those goals give you the power to maximize the resources entrusted to your team by thinking across budgets categories and by applying productivity tools ensure impact for legal and business results.

We all feel pressure to do more with less. Legal professionals are busier than ever and are all feeling the pressure to deliver. We are also trying to balance work and family. By applying these principles, I’m hopeful that you can find balance in life and your work team can successfully navigate and thrive in these challenging times!

What other considerations should legal teams be thinking of as they continue to adapt to the current environment?

COVID-19 has significantly changed the way employees do business, and many of these changes – working remotely, communicating on mobile devices, not being connected to a company network, sharing documents and messaging through cloud-based software – impede a company’s ability to readily track and access data in a systematic way. Moreover, these newer apps are seeing significant increases in use and their systems have not necessarily been tested, from a security perspective, in this way. I’m thinking of Zoom in particular, which has become the video conferencing software of choice for many organizations now conducting business virtually. That app has just exploded since the shelter in place orders started. This security concern is one of the best arguments, aside from e-discovery needs, for having an information governance policy in place: There is just so much personal data out there, personally identifiable data, personal health information, credit card information, Social Security numbers and the like. If a company is not proactive about protecting that information, it’s potentially out there for the taking. And when I say protect, I’m anticipating that companies have done some level of work to protect their data, but as the location of this data changes, companies need to adapt to the new risks and put security additional measures in place.

In short, this major transformation in the workplace can create a number of headaches for in-house legal down the road, from lengthy and complicated document collections to data security breaches. But with foresight and the right expertise, they can identify the issues now and avoid costly and time-consuming problems later. 

To read the Wolters Kluwer 2020 ACC Legal Operations Maturity Benchmarking Report, click here, and for their Future Ready Lawyer

Ken Crutchfield is the president and general manager of Wolters Kluwer Legal & Regulatory U.S. He leads the Legal Markets group and is responsible for setting the vision and strategic approach with Survey, click here.

a focus on developing leading digital products. His group aims to provide legal professionals across a wide range of markets with expert content and analysis and leading workflow solutions. Reach him at Ken.Crutchfield@wolterskluwer.com.

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CCBJ Perspectives Podcast, hosted by editor & publisher Kristin Calve, provides access to leaders and influencers within the ever-evolving ecosystem of lawyers and legal professionals.

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How Technology Is Changing the Consumer Experience

DONNA HOFFMAN CORNERSTONE RESEARCH

Vildan Altuglu, vice president of Cornerstone Research, interviews Donna Hoffman, professor of marketing and Louis Rosenfeld Distinguished Scholar of the GW School of Business at George Washington University, to gain her insights into the revolutionary impact of technology on consumer behavior, as well as potential issues related to data collection and privacy practices.

Vildan Altuglu: You’ve been studying online consumer behavior for nearly 30 years. Most recently, you have researched how the internet of things, machine learning and artificial intelligence influence consumer behavior. Can you explain how the online consumer purchase decision-making process differs from what happens in traditional brick-and-mortar stores?

Donna Hoffman: The consumer decision-making process has been described as a purchase funnel, a concept that originated from the study of consumers’ brick-and-mortar experiences. In its simplest terms, the purchase funnel is a series of increasingly narrow stages through which consumers pass when they are looking to buy products or services. At the wide end of the funnel, consumers identify a need for a product and then seek to fill that need. In the middle, they gather information about potential products and evaluate. Finally, at the end of the process, they make a choice and buy a particular product. Inside a store, consumers might have some idea of what brands they are interested in, examine the alternatives on the shelf, consider their options, and then choose one. This, of course, is a highly simplified view of what can be a relatively complex process. Regardless, according to the purchase funnel concept, the process is considered to be relatively inflexible and very linear.

In recent years, we have come to recognize that the traditional purchase funnel way of thinking has evolved dramatically, as consumers have incorporated the digital landscape into the physical experience of shopping. We now recognize that the consumer decision-making process is much more complex than a linear funnel; indeed, it is now most often described as a cyclical “decision journey.” With online purchasing, consumers can get on and off at different points in the journey, expand or contract their choice set based on other consumers’ reviews, compare prices across different vendors, and eventually make a purchase decision. They can even skip some steps entirely. The internet and personal digital devices have made the online consumer experience more convenient, accessible and seamless. And, more than ever before, this experience is much more in the control of consumers than marketers.

At the same time, consumers continue to value the social and experiential elements of shopping in a physical store. Online shopping does not completely replace its in-person counterpart; they can coexist and enhance each other.

Altuglu: What are some of the key takeaways from academic research into the online consumer purchase decision-making process?

Hoffman: Today’s digital consumer is engaged, empowered and mobile. With the explosion of smartphone and tablet use, critical interactions can occur anywhere, anytime. The majority of consumer interactions now happen over multiple visits, across a number of channels.

One of the most critical recognitions that has emerged is that marketers have less control over the purchasing decision-making process, and consumers have more. Social media, in particular, has played a significant role in that shift. In my research, I have examined how social media influences consumers’ attitudes toward brands, advertising and related market-response measures.

One of the biggest issues that researchers still need to understand is the value consumers may attach to the privacy of their information.

marketers to consumers. Literally, marketers broadcast their uniform messages to the consumer mass market, and consumers were passive receptacles for marketing content. In the world of social media, both consumers and marketers generate these messages, and consumers can be very highly segmented or even microtargeted. Consumers now rely heavily on other consumers, through online reviews, electronic word of mouth, and online searches. Before making a purchase, they may adjust their decisions based on the attitudes and situational factors of others. This puts the consumer in the driver’s seat and takes much of the power away from marketers.

Altuglu: Do consumers react differently to traditional marketing versus online marketing and through social media? If so, how? Hoffman: Yes, consumers do have different reactions to traditional versus digital marketing. First, it is important to understand what these terms mean. Traditional marketing refers to broadcast platforms such as print media, TV commercials and radio. Digital marketing includes electronic media delivered over the internet (mobile, desktop, tablets) and through specific platforms like social media, apps and email.

When presented with traditional marketing such as television commercials or magazine ads, consumers interested in the marketed products respond with increased awareness of and potential demand for these products. The consumers may gain familiarity with the marketed products, but they are still many steps away from purchasing. Traditional marketing is best at stimulating awareness and interest in a product; we refer to this consumer reaction as demand generation.

When consumers are exposed to online and social media marketing, the advertising message can be targeted specifically to them, based on information they provide when using computers and mobile or smart devices.

Because of this targeting, consumers are exposed to products that they may already be familiar with or have a need for, and they may react by making a purchase. Consequently, digital marketing tools can more directly convert needs and wants into sales. This consumer response is referred to as demand fulfillment.

Altuglu: How do you define the internet of things (IoT) and artificial intelligence (AI)? How do you think consumers’ interactions with these technologies will affect their buying habits and experiences?

Hoffman: This question reminds me of one I used to get when the internet was beginning to take off. People would ask me: “What is the internet? How different is it to market on the internet than any other channel?” The assumption was that it was just another channel – one more way to communicate with and market products to customers. It turns out that the internet is not just another channel but instead a revolutionary medium. It permanently changed how we communicate and live our lives.

The same can be said about AI and IoT. Together, AI and IoT bring intelligence to physical products. Because of IoT, physical objects can be connected to the internet, and by extension, to other physical objects. Most of the time, these objects have varying degrees of AI embedded within them, which enables them to “learn” in a way that seeks to augment human decision-making.

For example, common household objects, such as exercise bikes or vacuum cleaners, can become active partners, interacting with us to enhance our lives. Over time, consumers are likely to develop deep relationships with these physical objects, which have some level of autonomy, authority and agency to act on their users’ behalf. In turn, these relationships will transform how we consume, whom we trust, how we trust, what kinds of data are collected about us, and the purposes for which that data is used. Altuglu: What is the biggest issue you foresee related to AI and IoT technology?

Hoffman: Smart devices are inherently more involved in our lives, and as a result, they will have access to a wider variety of information about who we are and how we live our lives. In my view, one of the biggest issues that researchers still need to understand is the value consumers may attach to the privacy of their information, how this varies across consumers, and the extent to which context matters. Consumers will need to weigh the benefits of sharing their data via smart devices (including personalization and convenience) with any privacy concerns. So, while we have already seen substantial litigation related to data privacy, I think we can expect future litigation to more closely examine the potential benefits and costs that consumers face when they use these emerging technologies. 

Cornerstone Research's webcast, hosted by CCBJ, can be viewed here.

To learn more about the effects of online advertising and purchasing on litigation trends, see Cornerstone co-director of the Center for the

Research’s article series on Online Marketing.

The views expressed in this article are solely those of the authors, who are responsible for the content, and do not necessarily represent the views of

Donna Hoffman is the Louis Rosenfeld Distinguished Scholar and professor of marketing and the Cornerstone Research.

Connected Consumer at the George Washington School of Business in Washington, D.C. Her current research is focused on using conceptual, empirical and computational approaches to understand consumer experiences with AI. Reach her at dlhoffman@gwu.edu.

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