How the CLO-CFO Relationship Influence the LegalTech Buying Decisions

Introduction

"In an eradefined by unprecedented change, organizations face a constant barrage ofevolving regulatory landscapes, geopolitical complexities, technologicaldisruption, and dynamic market pressures. Navigating this intricate environmentsuccessfully demands more than just departmental excellence; it requires a newparadigm of executive collaboration." - ACC

At the heart ofthis necessity lies the increasingly vital partnership between the Chief LegalOfficer (CLO) and the Chief Financial Officer (CFO). Today, the most successfulenterprises recognize that the strategic alignment and seamless collaboration ofthe CLO and CFO are not merely beneficial, but critical for achieving optimalbusiness outcomes, driving sustainable growth, and building resilientoperations. -Association ofCorporate Counsel

The belowanalysis is based on the "The PowerPartnership: Optimizing CLO-CFO Collaboration for Business Success" Report published by Association ofCorporate Counsel on July15, 2025.

For #LegalTechfounders aiming to sell their products or services to in-house legal teams,understanding the dynamics of this executive relationship is essential tonavigating-and accelerating-the LegalTech buying process.

Why CLO-CFO Relationship Is Important

The CLO-CFOpartnership is not only about collaborative operations; it is astrategic alliance considered critical by 94% of CLOs for overallorganizational success. Both roles frequently characterize their relationshipas highly collaborative and fundamental to risk management, financialperformance, and business growth.

Although 74% ofCLOs report directly to the CEO, suggesting strategic independence, theiralignment and regular interaction with the CFO are crucial-especially asboth executives typically engage in executive forums, weekly meetings, andboard sessions.

Effective CLO-CFOrelations are rooted in trust, proactive communication, and a sharedunderstanding of financial and legal priorities. CLOs who “speakfinance” and CFOs who promote legal's business integration enhance thisrelationship's value. The CLO-CFO dynamic increasingly goes beyondcompliance and risk. Both executives recognize legal’s role in financialstrategy and revenue generation, such as identifying opportunities incommercial arrangements and ensuring value creation.

Impact on LegalTech Buying Decisions

1.Joint Decision-Making Power: 
Large and mid-sized organizations often require both CLO and CFO buy-in forLegalTech investments. As the report reveals, the CFO’s approval (budget,ROI, risk) is as essential as the CLO’s endorsement (usability, compliance,alignment with legal goals) for any significant technology purchase.

2.Financial Literacy as a Factor: 
CFOs value LegalTech solutions that clearly align with business objectives anddemonstrate financial impact—be it through process efficiency, cost reduction,or revenue enablement. The more the CLO translates LegalTech benefits intofinancial terms, the smoother the buying path.

3.Risk, Governance, and Compliance: 
Both leaders assess LegalTech through the lens of enterprise risk managementand governance frameworks. Solutions that proactively address compliancerequirements, lower organizational risk, and facilitate audit-readiness areprioritized.

4.Strategic Alignment: 
CLOs with direct reporting lines to the CEO (as is common in largeorganizations) tend to have greater perceived influence on financialperformance and, thus, on tech-buying priorities. However, a direct line to theCFO can facilitate a more agile, integrated buying process, provided there istrust and open communication.

5.Early Engagement vs. Last-MinuteApprovals: 
Firms with high CLO-CFO collaboration tend to involve both leaders early in thetechnology selection process. This promotes smooth internal alignment andminimizes last-minute objections or delays related to budget or complianceconcerns.

What LegalTech Founders Need to Know

For LegalTechfounders, recognizing and responding to the deep collaboration between CLOs andCFOs is not just good practice-it is a commercial imperative. Masteryof this power partnership is a decisive factor in winning-and scaling-biggerLegalTech deals.

The mostsuccessful LegalTech sellers better negotiate the buying cycles by aligningvalue propositions across both domains and proactively supporting theorganization's dual imperatives i.e. legal risk management and sound financialcontrol.

While pitchingyour LegalTech product/ service, make sure to -

1. Understand this 'Power CLO-CFO Partnership'
2. Speak the language of both leaders
3. Position 'Technology' as a business enabler
4. Support With related data, if possible, in the same domani
5. Anticipate joint forums
6. Facilitate cross-functional integration - much important
7. Build relationships, above everything!
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LegalTechfounders must recognize that most significant technology buying decisions arenot made by legal in isolation. The CLO-CFO partnership is critical-solutionsmust appeal to both legal value and financial rationale. Craft messagingand demos that articulate not only legal/compliance benefits (risk reduction,improved workflows) but also quantifiable financial outcomes (costsavings, ROI, faster revenue realization).

Avoid positioningLegalTech only as a compliance or risk tool. Highlight how your solution canenable growth, support revenue generation (e.g., faster contract cycles, betterIP management), and contribute to business goals. Be prepared to providedata, case studies, and projections that convincingly demonstratebusiness and financial benefits. CFOs demand evidence of operational impact andROI.

Expect to presentto both legal and finance decision-makers, possibly in executive orcross-functional meetings. Prepare to address questions about strategicalignment, integration with other systems, and long-term value. Solutionsthat enable or enhance collaboration between legal and finance teams will havea competitive edge. Features such as shared dashboards, complianceanalytics, and integration with financial systems are increasinglyvalued.

Invest in buildingrelationships with legal and finance leaders, trust remainssignificant in buying decisions. Understanding individual priorities and painpoints on both sides accelerates the sales process.

Now re-access ifyou are selling right and valuing the inter-dependent CLO-CFO