Legal and procurement teams play a critical role in shaping a company’s success and a strong partnership between them can directly boost your bottom line. When these teams work together effectively, contracts get negotiated faster, risks are minimized, and costs are kept in check. This means better deals, quicker decision-making, and fewer costly mistakes. On the flip side, poor collaboration can lead to delays, miscommunication, and financial losses that ultimately hurt the business.
In this article, we’ll explore six practical strategies that break down silos between legal and procurement, leading to faster turnaround times, improved cost control, and a competitive edge in the market.
- Make a clear order of operations
Making a clear order of operations means creating a detailed roadmap that outlines every step of the process from start to finish. It’s about knowing exactly what needs to happen and who is responsible at each stage so that everyone is on the same page. By defining the sequence of tasks, you remove uncertainty and ensure that work flows smoothly from one phase to the next. This clarity not only helps prevent delays and miscommunications but also builds confidence among team members. Using reliable technology to support this structure can further streamline the process, keeping everyone aligned and informed throughout the journey.
- Promote collaboration through mutual respect
Collaboration and respecting each other are the cornerstone of any effective partnership, particularly in high-stakes areas like contracting, where financial outcomes and legal risks are often at play. This respect comes from recognizing and valuing each team’s distinct roles in driving success. Leaders can model this by promoting thoughtful engagement, such as expressing appreciation for contributions and encouraging open communication. These actions help break down hierarchical barriers and cultivate a shared sense of purpose. When mutual respect becomes a natural part of everyday interactions, legal and procurement teams unite seamlessly, overcoming challenges and driving lasting success.
- Communicate early, frequently, and clearly
Effective collaboration depends on consistent and transparent communication. Regular check-ins, whether through weekly meetings or platforms like Slack, allow teams to resolve minor issues before they escalate. While conversations between department heads (such as CLOs and CFOs) are essential, most day-to-day challenges arise at the front-line level. With their hands-on experience, mid-level managers often have more profound insights into process inefficiencies and can provide valuable input when engaged regularly.
If time constraints hinder frequent communication, evaluate how teams prioritize their workload. Research shows that legal departments spend up to 20 percent of their time on repetitive tasks that can be automated, such as basic document reviews, time that could be redirected towards making stronger interdepartmental collaboration.
- Use technology to work smarter
When legal and procurement teams manage many contracts at once, every minute counts. A modern contract management system not only simplifies routine tasks but also improves the overall workflow. Automating tasks like creating contracts from approved templates and handling approvals it reduces manual work and cuts down on email back-and-forths. With up-to-date information on contract status, negotiation progress, and renewal dates, teams can quickly identify issues and focus on the most important tasks, leading to better results for the organization..
- Adopt an internal customer success mindset
Operational teams perform best when they prioritize the needs of their internal stakeholders and adopt a culture similar to that of customer-facing teams. Many high-performing organizations even appoint an internal Customer Success Manager to streamline inter-departmental processes and drive efficiency.
This role, often part of legal operations, focuses on identifying pain points, implementing actionable solutions, and developing long-term improvement plans. A well-known law firm reports that 93 percent of companies with legal operations functions see enhanced project management and innovation outcomes.
If hiring a dedicated CSM isn’t an option, teams can still embrace this mindset. By accepting customer success principles into daily practices, organizations can minimize inefficiencies and foster better alignment between legal and procurement teams.
Building a collaborative future for legal and procurement
Fostering better collaboration between legal and procurement functions has become a strategic necessity in today’s fast-paced business world. Organizations can make a partnership that drives efficiency and transformation by fostering mutual respect, redesigning workflows, maintaining clear communication, and adopting the right technologies.
Tools like smartContract CLM further accelerate this change, offering solutions that standardize contracts, optimize workflows, and provide transparency across teams. When legal and procurement professionals collaborate with trust and clarity, they unlock the full potential of their combined efforts. The result is faster processes, more thoughtful decision-making, and a strengthened competitive position. Organizations can create a sustainable legal and procurement ecosystem for long-term success by implementing these strategies.
