In the Allen & Overy Legal Innovation Benchmarking Report, 92 senior in-house leaders, such as general counsel and head of legal operations, spanning 18 countries globally, were surveyed to find out where in their legal innovation journey they are: reacting (starting out on the innovation journey), anticipating (on the cusp of significant change), or engaging (actively changing).

The research shows that, overwhelmingly, leaders of in-house functions have ambitions to change with over 80 per cent aiming to change in a systematic way, whether through continuous, incremental improvement (57 per cent) or transformational change (24 per cent).

Jonathan Brayne, partner and chair of Fuse, said the research has shown that in-house legal functions are ambitious to change and improve. 

However, while there are drivers to innovation, there are barriers too.

“Those legal functions enjoying the most success from innovation-based change (what we call the engaging group) make extensive use of established change management techniques and seek out innovation skills, whether by bringing them into the legal function or engaging external providers,” Mr Brayne said.

“But most legal functions haven’t yet taken this on board. They would find it easier to become agents of change if they did.”

In order to successfully achieve innovation-based change, the majority of the leaders of the in-house functions stated they had a clear vision of what they wish to achieve and its importance to the future success of their function. 

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The results show 75 per cent of in-house leaders have either developed a strategy with a substantial emphasis on innovation, or are planning to develop one.

However, most in-house leaders have not yet embraced the new approaches, technologies, data and resources necessary in order to realise their innovation visions. The survey revealed, for example, that although 53 per cent of respondents have cited the need to have better data as their main driver for innovation, only 15 per cent have data analysts/scientists dedicated to their team and only 30 per cent have technology managers.

“Something that stood out in our conversations with the APAC in-house leaders who participated is that the leaders in the organisations with the highest levels of innovation activity know how to stand back,” Kate Morris, executive director in A&O Consulting’s Asia Pacific practice said.

Ms Morris said that some organisations have trouble resisting the urge to turn innovation into a “group assignment”, involving members of the team who are in fact quite change-resistant.

“This can be critically demotivating, meaning transformation initiatives stall in the design phase,” she said.

“We know when we’re speaking with a change-maker – they have a genuine passion for higher performance, as well as the ability to cut through internal resistance. It’s a special combination.

“If leaders can identify these individuals, give them enough agency to learn through experience and clear the way for them when they become blocked, that’s when you really start to see an impact. Letting the internal change-makers drive the process, including any managing the external specialists, means you’re simultaneously re-investing in the team’s organic innovation capability.”