Lucy Powell explores what a strategic legal operations framework looks like and how to construct a realistic plan for 2026.
With recent research indicating that 91% of legal departments cite process optimisation as a key task and 88% report handling increased workloads with static headcount, strategic planning becomes essential. Here, Lucy Powell explores what a strategic legal operations framework looks like and how to construct a realistic plan for 2026.
The strategic value of year-end review
Effective annual planning begins with rigorous assessment of the current state. This requires honest evaluation of how the legal department actually operates, where resources are deployed and what outcomes have been achieved.
Key areas for review include workload analysis, budget performance, operational effectiveness, and stakeholder satisfaction. Legal departments that analyse and optimise their service portfolios and internal processes are better positioned to manage competing demands and prioritise effectively. Without this foundational understanding, planning becomes speculative rather than strategic.
The perils of over-ambitious transformation
A comprehensive review typically identifies numerous areas requiring attention. The instinctive response - attempting to address all issues simultaneously - represents a significant strategic error.
Common characteristics of over-ambitious plans include multiple major technology implementations scheduled concurrently, fundamental restructuring combined with process redesign, aggressive timelines that underestimate change management requirements and insufficient resource allocation for implementation.
The General Counsel must define functional purpose and priorities clearly, addressing fundamental questions about where the in-house department can deliver direct value versus where it manages external resources effectively.
Legal operations as a strategic framework
Legal operations provides a practical framework for addressing operational challenges without overwhelming the department. In 2026, legal operations centres on convergence, credibility and contribution, with legal departments establishing themselves as genuine business enablers rather than purely defensive functions.
Core legal operations capabilities include financial management, vendor management, technology enablement, process optimisation, data and analytics and knowledge management. The key to successful implementation lies in focusing on specific, high-impact areas rather than attempting to build comprehensive capability across all disciplines simultaneously.
A framework for effective prioritisation
Selecting the right priorities for 2026 requires a disciplined approach that balances business needs, capability gaps, and realistic resource constraints.
- alignment with business strategy:
Legal department priorities must connect directly to organisational objectives. An effective legal department strategic plan aligns resources, costs and budget with the company's mission and goals, establishing priorities that manage trade-off decisions effectively. If the business prioritises revenue growth, legal operations initiatives should focus on accelerating commercial transactions. If cost control dominates, emphasis should shift to spend management and efficiency gains. - capability gap assessment:
Honest evaluation of current capabilities reveals where improvements will deliver greatest impact, identifying critical bottlenecks that impede legal service delivery, areas where errors create risk, and processes requiring excessive time or resources. - impact and feasibility analysis:
Effective prioritisation considers both potential impact and realistic feasibility. Focus on quick wins that deliver visible improvement alongside one or two transformational initiatives requiring longer-term commitment. - resource reality:
Successful technology enablement starts with foundational capabilities like e-billing and matter management before progressing to more sophisticated solutions, with emphasis on integration and user adoption.
Constructing a realistic 2026 plan
A well-structured plan balances quick wins with longer-term transformation, sequences initiatives logically and allocates sufficient time for proper implementation.
A phased approach might include:
- Q1: Foundation-building - establishing basic infrastructure and gathering baseline data
- Q2: Piloting and refinement - testing new approaches with limited scope
- Q3: Scaling - rolling out proven approaches more broadly
- Q4: Consolidation - assessing impact and identifying next-phase priorities
While requiring clear investment, commitment and prioritisation, this phased approach allows for course correction, builds momentum through visible progress and avoids the paralysis that accompanies over-complex transformation programmes.
Key trends shaping 2026 priorities
Strategic AI integration, strengthened compliance frameworks, cross-functional collaboration and continuous measurement and refinement represent key priorities for legal operations in 2026.
However, engagement with these trends must be calibrated to organisational maturity. A department still struggling with basic process documentation should not prioritise advanced AI implementation. Effective prioritisation focuses on high-impact and urgent tasks, while outsourcing routine activities and eliminating redundant processes can free resources for strategic work.
Conclusion: The discipline of focus
As legal departments prepare for 2026, the most important strategic decision may be what not to attempt. The pressure to address every operational challenge simultaneously is understandable but counterproductive.
Transformation results from sustained focus on critical priorities, proper implementation and building capabilities that endure. Legal departments that resist the temptation to "boil the ocean"- that choose two or three high-impact priorities and commit to delivering them well - consistently outperform those with more ambitious but less focused agendas.
By conducting rigorous reviews, prioritising ruthlessly and planning realistically, legal departments can position themselves to deliver genuine operational improvement in 2026 whilst building foundations for continued evolution beyond.
Disclaimer
This information is for general information purposes only and does not constitute legal advice. It is recommended that specific professional advice is sought before acting on any of the information given. Please contact us for specific advice on your circumstances. © Shoosmiths LLP 2025.