Local Government Lawyer Insight July 2017 LocalGovernmentLawyer 16 There are many factors that might influence which alternatives are attractive, or otherwise. The strengths and weaknesses of the internal team need to analysed, alongside an analysis of the state of the market, and the likelihood of being able to recruit to fill any gaps identified. If there is a recognised shortage of expertise in a particular area, and known difficulties recruiting to it, this might be a strong influence to source most of that work from external suppliers. Capacity is also an issue, both in the in- house legal team, and client departments. If departments are stretched and struggle to instruct effectively, it might be a better option to leave that work in-house so that support can be given by in-house lawyers rather than incurring the cost of more expensive external lawyers. In these circumstances the support needed may extend beyond what it would be usual for lawyers to provide, and the cost of obtaining this level of support externally could be prohibitive. Of course, there may also be contractual obligations that influence the changes that can be made, for example if an authority is tied into a contract with a particular provider for a particular area of legal service, it could be difficult to make changes until that contract has expired. Likewise it might be necessary to set up new contractual arrangements to outsource large areas of work. The culture of the organisation and its appetite for risk is also likely to be an influencing factor. If the authority is involved in high-profile, innovative projects, it may be appropriate for support to be provided by the in-house team, but it would require an honest assessment of whether the in-house team currently has the relevant skills to support that work. It may do, or it may be prudent to outsource such work for a period of time with the express intention of upskilling internal lawyers working alongside the external lawyers on current projects, or recruiting to strengthen the team in the longer term. The target operating model Once the authority’s needs are understood, and the alternatives to the current position fully considered, it should be possible to determine a target operating model and potential revised structures, supported by a strong business case. It is unlikely that the target operating model could be achieved immediately. However, once the aim is established, a project timeline can be prepared, with targets set as to what could be achieved at various stages. It is inevitable that any target operating model that changes the status quo will be time consuming and potentially complex. It will be necessary to gain the support of the in-house legal team, client departments and senior management, and ensure that they are fully on board with the aims. This is a project, and like any other, will require careful project management to ensure that desired outcomes are met. If the business case supporting the target operating model is strong enough, the project is likely to be worth pursuing despite any hurdles encountered. However an authority currently balances the work between its in-house team and external suppliers, it is worth reviewing the arrangements, and continuing to carry out periodic reviews. Local government is a rapidly changing environment, and what was once the best mix of internal and external suppliers in unlikely to remain so indefinitely. Helen Edwards is client services director at Kennedy Cater Legal.