There’s no question that the legal function within a business is critical. However, it can be challenging to demonstrate the value of the legal function to business leaders. After all, what does “legal” mean to most people? It’s not tangible like sales or marketing. In this article, we’ll explore five strategies for demonstrating the value of the legal function to business leaders.
1. Legal Function Provides Value by Acting as a Consultant
When the legal function can provide value to the business by acting as a consultant, it demonstrates the legal function’s importance and ability to add value. To provide value as a consultant, the legal function must understand the business and its operations. The legal function can then provide advice and recommendations to the business on how to improve its operations.
2. Legal Function Can Serve as a Resource Tool
The legal function can also provide value to the business by acting as a resource. The legal function can provide information and resources to the business that can help the business improve its operations. The legal function can also help the business find solutions to business problems.
3. Legal Function Can Be Used to Reduce Risk
The legal function can be used to reduce risk by developing and implementing risk management policies and procedures. The legal department can also help identify and assess risks and work with other departments to mitigate any risks that may threaten the business. Additionally, the legal team can advise senior management on potential legal and regulatory issues impacting the business. By taking a proactive approach to risk management, the legal function can help reduce the business’s overall risk exposure.
Another way the legal function can reduce risk is by providing training to employees on compliance-related topics. This training can help employees better understand the business’s compliance requirements and how to avoid potential risks. Also, the legal team can develop and implement policies and procedures to ensure that employees are aware of and comply with all relevant laws and regulations. By providing employees with the tools and knowledge they need to stay compliant, the legal function can help to reduce the risk of non-compliance.
4. Legal Function Can Provide Valuable Feedback on Business Decisions
Legal professionals can provide critical insights to their business counterparts on various topics, including proposed transactions, new product launches, and changes in company strategy. In some cases, the legal team may be the only ones with the knowledge and expertise to understand the implications of certain business decisions fully. As a result, the legal function needs to be proactive in offering their feedback and perspectives to the business.
One way to ensure that the legal team provides valuable feedback is to develop a process for flagging potential issues early on. This can be achieved by creating a checklist of items that should be reviewed before any significant business decisions are made. The checklist should include items such as:
· Whether the proposed transaction complies with all applicable laws and regulations;
· The potential risks and liabilities associated with the transaction;
· The tax implications of the transaction;
· Any contractual obligations that need to be considered; and
· Any other legal or regulatory issues that may impact the decision.
By having a process in place for flagging potential issues, the legal team can provide valuable feedback to the business on various topics, helping to ensure that all decisions are made with a complete understanding of the implications.
5. Legal Function Can Negotiate Deals and Contracts on Behalf of the Business
The legal function can negotiate deals and contracts on behalf of the business, which can be valuable to the company. By having a skilled lawyer or team of lawyers representing the company in these negotiations, the business can be sure that it is getting the best deal possible. Besides, the legal function can also help draft contracts and other legal documents for the business, saving the company time and money.
Ultimately, the legal function can be extremely valuable to a business. By utilizing some or all of the strategies mentioned above, the legal function can help save the company money, time, and hassle.