In the vast landscape of legal operations, the practice of selecting outside counsel often hinges on gut feelings and established relationships. However, Basha Rubin, CEO and co-founder of Priori, challenges this norm by advocating for a more strategic and data-driven approach. On the podcast "Notes to My (Legal) Self," Rubin discussed transforming vendor selection into a formidable asset for legal departments.

Rubin highlighted that Fortune 500 companies allocate between $100 to $150 million annually on outside counsel, often without a structured framework to assess risk or complexity. To address this, her team encourages clients to adopt a simple yet effective tool: a risk-complexity matrix. By categorizing past legal projects and comparing them against spending and provider efficiency, legal departments can gain insightful revelations. Often, this analysis shows that a significant amount of work outsourced to prestigious law firms could be handled more cost-effectively by specialized providers.

The current trend in many legal departments leans heavily on familiarity — choosing counsel based on personal connections or quick internal referrals. Rubin argues that this method is not only outdated but also indefensible in today's data-driven environment. Instead, she suggests that legal teams should adopt procurement-style strategies that emphasize transparent and repeatable decision-making processes.

To facilitate this shift, Rubin’s platform, Priori, aggregates data from a wide array of public and private sources. This creates a comprehensive database that allows legal departments to search for attorneys based on specific metrics such as expertise, litigation history, and past client reviews. This system not only enhances the selection process but also aligns legal operations more closely with business strategies, focusing on efficiency, cost reduction, and client satisfaction.

Moreover, Rubin emphasizes that modern legal teams should view vendor selection not just as a necessary task but as a strategic lever. By designing systems that evaluate and select outside counsel based on performance and fit rather than prestige and familiarity, departments can optimize their resources and contribute more significantly to their companies’ overall success.

The approach Rubin advocates represents a pivotal shift in how legal departments handle outsourcing. By moving away from instinct-driven decisions to a more robust, data-centered approach, legal teams can transform their operations from cost centers to strategic assets. This change not only promises better financial management but also a higher degree of satisfaction among internal clients, proving that strategic vendor selection is crucial for modern legal departments aiming to thrive in a competitive business landscape.