Articles Posted in “Legal” Issues that Present “Management” Issues

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The Point

Two surveys of general counsel reported in December offer identical descriptions of the budget crisis facing corporate Legal departments in 2023:

(1) From the legal system: most face increasing demands, and

(2) From the C-Suite: most face cost reduction demands.

In such circumstances, executive management usually asks Legal for some measure of cost discipline similar to what they ask of other corporate functions and business units. Too often, Legal reacts by threatening a game of “chicken” with the business side: give us the funding we want, or the company faces potentially catastrophic risk.

C-Suites facing intransigence from Legal should consider a tool used where an employee’s performance has slumped, but summary dismissal would be premature: a performance improvement plan. Continue reading

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 The Point

  1. Operational risk — the possibility that a business’ efforts might fail in their actual execution — poses the greatest peril to success of a company’s contracts.
  2. Operations take place outside of the corporate law function, so evaluation of the risks they pose should consist of practical judgments by businesspeople — not legal analysis.
  3. Therefore contract creation and management should be a cross-functional — not solely a Legal — responsibility.

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