Practical tips from the 2025 State of the Corporate Law Department Report
2025 State of the Corporate Law Department Report
The Thomson Reuters Institute published the latest annual report on law-department priorities and concerns, the 2025 State of the Corporate Law Department Report, in the spring. A recent webinar, Defining Value In-House: Insights from the 2025 State of the Corporate Law Department Report, covered findings of the report, with valuable insights into the evolving role of in-house legal teams.
Moderated by Kathleen Alberico, Strategic Business Development Director at Thomson Reuters, the webinar featured a panel of experts, including:
- William Josten, Legal Marketplace Innovations Strategist at Thomson Reuters Institute and principal author of the report
- Lyndsey Wurst, Director of Strategic Accounts at TransPerfect Legal Services
- Shelly O’Callaghan, Executive Vice President and General Counsel at International Dairy Queen
These leaders discussed practical strategies for maximizing return on investment (ROI) and enabling business growth, emphasizing the importance of aligning legal goals with broader business objectives.
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Rise of value to top of mind for GCs
What value can mean to different departments and GCs
Balancing the goals of a legal department: The four spinning plates model
Communicating value and setting goals
Protecting the business from emerging risks
Embracing innovation, continuous learning, and strategic alignment
Rise of value to top of mind for GCs
The report found that General Counsel (GCs) mentioned the concept of “value” three times as often as in past surveys. The emphasis on value is driven by the need to manage rising legal costs, navigate complex regulatory environments, and support business growth.
GCs are increasingly expected to demonstrate how their department adds value to the organization, beyond just legal compliance and risk management. As Shelly O’Callaghan noted, “The legal department’s always been a cost center, whether we like it or not. And that’s why we have to be so clear about how we bring value. “
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What value can mean to different departments and GCs
The definition of “value” can vary significantly across different departments and GCs. For some, value is about cost efficiency and reducing legal spend. For others, it is about providing strategic, commercially attuned advice that supports business initiatives.
William Josten highlighted this diversity, stating, “You hear value so often it’s important to contextualize all the different things that it can mean. And that helps to quantify why we see it so predominant in GCs’ minds.” He continued to list several different kinds of value that are important to specific types and sizes of businesses. GCs must understand the unique needs of their business and tailor their approach to deliver value in a way that resonates with each department.
Balancing the goals of a legal department: The four spinning plates model
To effectively manage the multifaceted nature of value, the webinar highlighted the “four spinning plates” model from the report, which helps GCs balance the legal department’s priorities:
- Effectiveness: Managing performance and talent to ensure smooth operations.
- Efficiency: Controlling budgets and leveraging technology to improve processes.
- Protection: Addressing new regulations, emerging risks, and litigation.
- Enablement: Supporting business growth and aligning with the company’s strategic objectives.
Lyndsey Wurst emphasized the importance of continuously managing the priorities of a department through a Legal Ops function, saying, “It’s that kind of constant reminder of: we have discussed this or we’re going to continue to discuss this. Is it an absolute need or if it’s something that we can reprioritize?”
The panelists agreed that legal department concerns can generally be rolled up into those four large areas for clearer comparisons and priority-setting.
Communicating value and setting goals
Effective communication is key to demonstrating the legal department’s value to business leaders. GCs must be transparent about costs, explain the value of outside counsel, and show how technological investments can lead to greater efficiency and alignment with business goals.
At the same time, legal teams need to have goals, both short- and long-term, that align with the business. Shelly O’Callaghan shared her approach, stating:
We set our executive goals: three to five year strategic goals. How are these things going to come to pass? What are the projects that are going to need to be initiated? In addition, what are the enabling tools that we’re going to need? So the department goals are a mixture of sort of direct goals that link to the strategic initiatives and also internal department goals where you’d say, I’d love to get there, but I can’t do those things if I’m spending all my time doing manual work over here.
Executive Vice President and General Counsel at International Dairy Queen
O’Callaghan also noted that goals and budgets can often shift substantially during the course of a year, due to major litigation, transactions, or evolving business priorities.
Protecting the business from emerging risks
Staying informed about rapidly changing regulations and being proactive in anticipating new risks is essential for protecting the business. GCs must be involved in early discussions and provide balanced advice that helps the company navigate potential legal challenges while supporting its growth.
Shelly O’Callaghan highlighted this point, saying, “The legal department tends to be a little more logical and a little less emotional about things. That’s helpful in almost any discussion that you have internally: are you offering choices? Are you talking about both risks and benefits? Are you able to be a connector?”
By staying ahead of emerging risks, legal teams can help the company avoid costly legal issues and capitalize on new opportunities.
Embracing innovation, continuous learning, and strategic alignment
To maximize ROI and enable business growth, GCs and their teams must define and measure value, allowing the definition to evolve over time. They should be open to new technologies, such as AI, to enhance operations and reduce costs.
Continuous alignment with the business’s needs and effective communication of this alignment to the C-suite and the broader organization are also critical as well as an ability to learn quickly from mistakes.
As Lyndsey Ward concluded, “Just never keep the door shut. You’re a constant learner and making sure that you have people around you that are also a constant learner and are OK with trying new things. And, maybe, taking a few steps back every once in a while to reflect on what we learned and not to do that again.”
By implementing these practical strategies, legal departments can position themselves as indispensable assets to their organizations.
For more insights, watch the webinar on-demand or download the full report.
