Involve legal departments early to increase efficiency

Author: Stephanie Simon-Sommer, lawyer

Companies make decisions constantly. Usually, the legal department is asked only afterwards whether those decisions are legally watertight. Quick answers are then expected so that resolutions can be implemented immediately. Yet it often cannot happen that quickly; legal fine-tuning may be required. And everything is delayed. The legal department is often blamed for this postponement — which is unfair. If the legal department had been involved from the outset, resolutions and decisions could actually be implemented immediately. So how can companies deploy their legal department so that it does not merely put out fires, but prevents them?

Integrating the legal department into processes

Colleagues in the legal department never apply the brakes deliberately. Like everyone else, they are interested in sound business decisions that are implemented quickly. But progress slows when resolutions make it essential to examine all associated legal risks. That takes time. And it could easily be avoided.

For the legal department to act as efficiently and successfully as possible, it must be involved proactively in internal company projects and processes. Only then can small and large “fires” be prevented before they arise. Legal problems can be addressed before they cause greater damage. Those who ignore this legal expertise will more often find that a fine notice or interim injunction arrives suddenly and unexpectedly. In such cases, even the best legal department can do no more than limit the damage. It is therefore all the more important to persuade management and establish a “tone from the top” that the legal department must be involved as early as possible.

Motivated employees are productive employees

Those who involve the legal department early are rewarded not only with faster processes, but also with more motivated colleagues. They appreciate being able to contribute their knowledge and skills — rather than having to spend the working day on routine tasks. Experience shows that high motivation leads to greater performance and satisfaction. It is therefore important not to jeopardise this motivation with overly rigid requirements or even micromanagement. The more independently lawyers can make their contribution, the more committed they will be to their work.

Experts call this “empowerment”: instead of being micromanaged, employees can contribute their strengths, ideas and knowledge. This reinforces self-esteem and personal responsibility. Beyond having more motivated and therefore more productive employees, the employer benefits from increased retention and loyalty. Who would leave an employer that values their abilities?

Support through legal outsourcing

The earlier the legal department is involved in strategic processes and projects, the more efficiently it can remove potential legal problems. Supporting strategic processes with legal expertise is in fact the legal department’s most important task. The problem is that contract and NDA reviews, warranty cases and legal opinions often tie up too much capacity in day-to-day business. Fortunately, these routine tasks can be delegated. When workloads remain high or a particular volume of work is especially demanding, legal outsourcing provides relief. “Outsource the work that keeps you from working” is the guiding principle.

One final tip: a surprisingly large proportion of companies’ contract templates can be created by the relevant specialist department itself using IT-supported solutions. For example, document generators can be used that contain templates prepared by the legal department with legal certainty.