Thursday 28 July 2011

Why businesses should look at integrating legal

In South Africa, we tend to see the law as a reactive option and our closest we get is using law for compliance. The fact is that law is the rules the play book if you will. They say that most errors (to 90% says one study) that error is decision making are usually based on an error not of logic, but of perception.

Could this be why is SA lawyers are seen as a necessary evil or even worse a cost centre?
Let's not tackle this issue head on let's rather look at some things that lawyers are good at:

Thinking
A good lawyer is not only someone who can look at and interpret law and some say are masters of gray, but rather let's look at what a good lawyer's thinking skills should be:
  1. Structured
  2. Logical
  3. Tactical
  4. Proactive
  5. Solutions driven
  6. "Big Picture" or "Global" view
 Team orientated
  1. Lawyers need to be able to work across multi-disciplinary teams with different personalities
  2. Can move effortlessly between team member and leader
  3. Knows the importance of many of the core principles behind project management
  4. Understands conflict, can engage in it when tactical required or resolve it
  5. Good people skills
  6. Excellent communication skills
  7. Can change roles quickly
  8. Understands how to work within set parameters
Flexibility
  1. Can be moved within the business to any position or project without too much disturbance
  2. The dynamic nature of law means that lawyers are more comfortable than most with position changes 
  3. Can easily be moved within reporting structures
Potential areas where the occupation of lawyer can help business
  1. Obvious is legal interpretation and compliance
  2. Handling legal problems and bringing in external legal assets when tactically and economically requires
  3. Disciplinary issues and appearance on behalf of the business in legal forums
  4. Naturally are risk conscience, so risk and its mitigation are a natural fit
  5. Contract management
  6. Procurement
  7. Project management
  8. Taking meetings
  9. Organisation
  10. Negotiation
  11. The list goes on ....
  12. Why are lawyers so capable, because as stated above they become masters of the rule book and from that everything else follows.
Other advantages:
  1. Helps secure "first mover advantage" (this was shown in a Harvard Business School Study)
  2. Reduced legal expenses
  3. In high risk industries, having in-house legal on site dramatically increases the ability of the business to contain and mitigate risk
  4. Lawyers bring a different view which can provide different insights into the business
There are many more advantages, but the items above and other will be dealt with in future posts. In South Africa securing the best possible legal minds for you business unit may be one of the best decisions that your business has made. Don't believe me, just step back from your present view and look at the potential and then put the cost into perspective. Its a good move to make.

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