One of the biggest misconceptions about automation is the belief that buying a LegalTech platform and implementing it automatically makes legal processes more efficient.
In reality, the opposite often happens. A company purchases a system, conducts onboarding sessions, trains employees, and adds another digital product to its corporate infrastructure — but several months later the legal team is still working exactly as before. Contracts are still approved in messengers, Excel remains the primary management tool, and the new platform turns into expensive “shelfware.”
That is why the case of the legal department at Sber Factoring — one of Russia’s leading factoring companies — is especially noteworthy.
The team managed not only to implement technology, but to truly transform its legal operations: they reduced the time required to prepare legal opinions by half and developed an automated generator for corporate approval protocols related to transactions.
This case demonstrates an important principle: successful automation does not begin with selecting software. It begins much earlier — with preparing the legal function for change.
Why You Should Not Automate Everything at Once
One of the most common mistakes companies make is trying to digitize the entire legal department simultaneously.
Managers often assume that if automation is beneficial, then everything should be automated at once:
- contracts,
- approvals,
- claims management,
- litigation,
- corporate procedures,
- internal business requests.
However, large-scale automation initiatives usually lead to three problems:
- employees resist change;
- multiple processes fail simultaneously;
- the business loses trust because it does not see quick results.
Automation should begin not with the most complex process, but with the most predictable one.
How to Choose the First Process for Automation
There are several criteria that help identify the right candidate for LegalTech implementation.
1. High Repeatability
If lawyers perform the same actions every day, this is a strong signal for automation.
For example:
- standard contracts,
- NDAs,
- procurement approvals,
- corporate protocols,
- template-based legal opinions.
The more repetitive the process, the greater the automation effect.
2. Clear and Stable Workflow
If a process constantly changes, depends on specific employees, or lacks unified rules, it is too early to automate it.
First, the process must be standardized:
- define stages,
- assign responsibilities,
- eliminate unnecessary approvals,
- document exceptions.
A bad process in digital form remains a bad process — only more expensive.
3. Measurable Results
Before implementation, the head of legal must clearly understand which KPI should improve after automation.
For example:
- document preparation time,
- number of errors,
- approval speed,
- employee workload,
- cost per case.
If the impact cannot be measured, the project will quickly lose business support.
What Data Should Be Collected Before LegalTech Implementation
One of the main reasons automation projects fail is the lack of baseline analytics.
Many legal departments begin implementation without understanding:
- how much time processes actually take;
- how many employees are involved;
- where delays occur;
- how many mistakes happen;
- how much one operation costs.
Without this data, it is impossible to prove project effectiveness.
Essential Metrics to Collect
Before implementation, legal department leaders should gather at least five groups of metrics.
1. Process Duration
Measure how long it takes to:
- prepare documents;
- complete approvals;
- conduct reviews;
- obtain final sign-off.
The key is to collect real numbers rather than assumptions.
2. Labor Costs of All Participants
One common mistake is calculating only lawyers’ time.
In reality, legal workflows often involve:
- business teams;
- accounting;
- security;
- procurement;
- management.
Automation affects the entire chain.
3. Process Volume
How many contracts, requests, or legal opinions pass through the workflow every month?
Without scale, economic impact cannot be calculated.
4. Error and Rework Rates
How many documents are returned for revision?
How many approvals are delayed?
How many tasks are duplicated?
These metrics directly influence process costs.
5. Cost Per Case
One of the most underestimated metrics in Legal Operations.
Managers should know:
- the cost of preparing one contract;
- the cost of one approval cycle;
- the cost of processing one legal request.
This is the number that later helps demonstrate the real ROI of automation to the business.
How to Calculate the Economic Effect of Automation
Most LegalTech projects are presented through abstract promises:
- “we will accelerate processes”;
- “increase transparency”;
- “reduce workload.”
For business stakeholders, this is not enough.
Legal leaders must speak the language of numbers.
Point A and Point B
Before implementation, there must be a Point A:
- current speed,
- current cost,
- current labor input,
- current error rate.
After implementation comes Point B:
- the process becomes faster;
- manual work decreases;
- employees spend less time;
- the business receives results sooner.
Only by comparing these two states can the value of automation be proven.
What Should Be Included in ROI Calculations
The economic effect is not limited to reducing lawyers’ working hours.
It is also important to account for:
- fewer errors;
- faster business operations;
- fewer approval stages;
- reduced management workload;
- lower human-factor risks.
In many cases, the biggest effect of automation is not payroll savings but increased legal capacity.
The legal department can process more work without increasing headcount.
Why Lawyers Must Learn to Speak the Language of IT and Business
Another common reason LegalTech projects fail is communication breakdown.
Lawyers discuss automation as a legal task.
IT sees it as a technical integration project.
Business teams expect faster operations and lower costs.
As a result, every side speaks a different language.
How to Avoid Conflict
The head of legal should translate legal needs into business outcomes.
Instead of:
- “we need a contract generator,”
say:
- “we will reduce deal launch time from five days to two.”
Instead of:
- “we need an approval system,”
say:
- “we will reduce procurement delays and accelerate commercial operations.”
The closer automation is tied to business metrics, the stronger the project support will be.
Pitfalls at Every Stage of Automation
Stage 1. Unprepared Processes
The most common issue is trying to automate chaos.
If the process is undocumented and depends on specific employees, software will not solve the problem.
What to do:
- document workflows;
- remove unnecessary stages;
- standardize rules.
Stage 2. Team Resistance
Lawyers often perceive automation as a threat:
- fear of control;
- fear of layoffs;
- unwillingness to change привычные workflows.
What to do:
- involve the team from the beginning;
- explain implementation goals;
- demonstrate quick wins.
Stage 3. Lack of Project Ownership
If automation becomes “everyone’s responsibility,” the project quickly loses direction.
There must be clear owners:
- from legal,
- from IT,
- from business.
Stage 4. Searching for the Perfect System
Many companies spend years searching for the “perfect LegalTech platform.”
Meanwhile, the market evolves faster than the project itself.
It is better to implement a working solution for one process first and then gradually scale automation.
Automation Is Not a Software Purchase — It Is a Management Transformation
The main lesson confirmed by successful cases is simple: LegalTech alone does not transform legal operations.
Technology only amplifies mature processes.
If a company lacks:
- transparent metrics;
- documented workflows;
- business support;
- a team ready for change,
then even the most expensive platform will fail to deliver results.
On the other hand, when legal leaders begin with process analysis, calculate economics, align with business stakeholders, and implement automation step by step, technology starts delivering measurable value.
That is the difference between a purchased LegalTech tool and a working one.