4 minute read
How to Effectively Upskill GCs for Digital Transformation Projects
By SALLY MEWIES
As artificial intelligence (AI) continues to dominate news cycles, emergent technologies are hitting the market as never before. Couple that with the prevalence of “plug and play” IT tools that are becoming increasingly interoperable and a consumer market that is more and more accustomed to businesses being technologically sophisticated, and we can understand why the number of organizations undertaking digital projects is on the rise.
Digital transformation can be daunting. A recent Walker Morris survey of senior in-house lawyers found that over a third of respondents (36 percent) acknowledged the need to embark on digital transformation but do not know where to start. Not only that, but 27 percent find digital transformation “overwhelming.”
However, as technology in business becomes more prevalent and less transparent, Legal has a crucial role to play, not only in the implementation but in the ongoing management of these increasingly autonomous solutions.
So, what can the in-house team do to ensure that tech projects are delivered successfully?
1. View the digital transformation project through a wide lens. It is rare for tech procurements to be siloed: Interdependencies between new and existing systems are commonplace. On big projects, a multi-supplier arrangement would not be unusual. For example, you might have an IT consultancy prepare a transformation roadmap that the consultancy or a third party will deliver. The multi-supplier arrangement might include procuring and configuring multiple third-party software tools, as well as installing new hardware or introducing ongoing tech support.
To aid the smooth delivery of a digital transformation project, take steps to ensure that there are no gaps in the allocation of responsibility between suppliers and that effective contractual mechanisms are in place to manage change. The “dotted lines” between suppliers are pivotal. Completing this exercise can identify critical interfaces that need to be built or maintained as part of the transformation.
2. Consider where regulation may bite, now and in the future. Most legal teams are now adept at spotting (and often advise on) legislation-specific issues, such as personal data processing or the UK’s Transfer of Undertakings (Protection of Employment). With security and AI priorities for regulation in many countries, they are likely to be subject to a legal framework in the near future.
In Europe, for example, there are draft regulations concerning the production, deployment and use of AI, which means AI may soon be regulated similarly to data protection. Beyond this, more stringent requirements in relation to consumer-facing products are set out in the Digital Markets, Competition and Consumers Bill. Businesses need to be mindful of the impact of the data protection reforms that are progressing in the UK.
General counsel and their teams can help manage these upcoming developments by including provisions in contracts that protect the business against these changes in the law. Even though they might only be “agreement to agree” style clauses, they can be helpful in driving the right outcomes.
3. Push for contractual mechanisms to give the project the best chance of success. Though ubiquitous in most contracts, the right to terminate in the midst of a digital transformation may be an unappealing option, even if it follows a failure to deliver. If considerable time and cost have already been expended on a partly delivered solution, the prospect of starting again might be undesirable.
Experience tells us that it is far better to build in contractual mechanisms that resolve minor issues before they turn into big ones where termination becomes part of the conversation. Legal can suggest detailed change control procedures, service-level regimes, governance programs, clearly documented delivery plans and regular review meetings to keep projects on track at the negotiation stage. It may seem unnecessary, but strong governance makes a difference and can nip issues in the bud.
4. Bring the users with you. This may appear obvious, but the implementation team can often become disconnected from the user group. It is important to strike a balance between engaging users so they adopt and use the new systems effectively or engaging them too much so that they delay the project. Workshops and user briefings can work very well in helping achieve this balance if structured in a practical and informative way.
5. Understand the customer’s role in delivering the project. Rarely can suppliers implement large projects on their own. They need commitment and support from the user group. If this is not understood at the beginning of the project, delays can occur and costs will rise. Being clear at the outset can help set realistic expectations.
