We invite you to take part in our maturity index test so that you know how prepared your legal department is for the challenges of the future. Therefore, it is important to emphasize that today, the General Counsel is himself a legal leader who, with his communication and leadership skills, helps to define the direction of the company by aligning business strategies with the legal future. In addition, according to a survey by the Association of Corporate Counsel (ACC), 50% of the in-house legal departments that participated had at least one person for the role of legal operations, which is a significant increase from last year`s 20%. According to Thomson Reuters in the Legal Tracker LDO Index Benchmarking and Trends Report 2019, 68% of legal departments are facing a growing demand for legal work, and this is a trend that has become evident in recent years. If we take a closer look at what a legal manager is today, we realize that he is not only an experienced lawyer, but also a key figure in advising managers on strategic decisions. The General Counsel is the internal advisor responsible for ensuring that the Company generally complies with applicable regulations, legally supervises the Company`s activities and projects and defines the strategy for defending the Company`s legal interests in processes initiated or initiated by the Company with third parties. The effective execution of such functions brings benefits that improve the productivity and profitability of the in-house legal department and allow the team to demonstrate its value to the company: thus, the functions of the legal department are increased, while the staff and resources generally remain unchanged. There is a new trend to achieve this result: legal managers focus on consulting rather than execution, and focus their time on strategic advice that moves the business forward. The legal manager must design these initiatives in such a way that they comply with legal requirements and do not invade areas that could harm the company`s image. In some organizations, there may be a tendency to transfer risk to the legal department, which creates pressure on business decisions. In these cases, the role of the legal lead is to understand the company`s pressure points, strategy and objectives and to communicate to senior management the risks and legal issues associated with each decision. This will enable the legal department to make strategic and informed decisions within an acceptable legal risk profile. Finally, legal managers are increasingly reliant on technology and must adapt to new changes in their legal activities.
For example, contract management process automation programs can help legal managers create more efficient contracts and use automation to manage contractual obligations and their respective renewals. That`s why at Alster we specialise in developing and even outsourcing this role and functions, but we`ve also been able to internalise the best practices that organisations like the Corporate Legal Operations Consortium (CLOC) promote around the world. On the other hand, CLOC actively participated in the definition of the “Legal Ops” function, creating a framework and defining the 12 key competencies to reach a level of maturity that allows the in-house legal department to be more efficient and generate added value for the company. Only quantifiable clarity about the location of your legal department leads you to think about the strategies and actions that need to be implemented to achieve efficiency and quality of service. The legal manager must demonstrate a good ability to be an intermediary of the company and make informed business decisions to easily connect with other areas of the business. There is a strong tendency within the company`s senior management to seek support in the legal areas to make strategic decisions based on business and legal analysis. A legal officer`s ability to provide this combination in their advice can add fundamental value to the business. For example, if it is an organization with an online presence that manages users` personal data, it is the function of the legal administrator to get the company to act in accordance with the various regulations on the protection of personal data. The purpose of the legal department is to legally represent the company by delegation of management. as well as competency advice and support for senior administration and other organizational units to ensure that. The legal manager`s knowledge of regulatory developments forms the basis for advising on transaction planning or business initiatives.
For the General Counsel to be considered a strategic partner in the business process, the CEO and the company`s executives must necessarily involve him in the business planning and decision-making process. In addition, according to the same report, 90% of legal departments consider the control of costs incurred in their field to be a high priority, aspects that hinder the path to efficiency. In principle, the legal officer is the lawyer within an organization who is responsible for managing, coordinating and supervising all legal aspects. In this sense, the legal manager is responsible for designing the methods that allow the company to comply with all applicable legal regulations according to its nature. This includes those relating to human talent to those inherent in the market or industry in which the company operates.