Gain insight into the bottlenecks and areas for improvement
The conclusion of agreements, the fulfilment of obligations and the exercise of rights are integral business processes. In addition, business operations involve organising business activities using business processes (for example, sales, personnel and purchasing processes). IT applications support the business processes, and a (departmental) team manages them.
A baseline measurement of the legal operation identifies the bottlenecks and areas for improvement in the cohesion between business activities and business processes. In other words, a baseline measurement provides insight into:
- How is the current legal operation organised?
- Has the company made the proper agreements with customers, employees and suppliers?
- Are the objectives of contracts achieved?
- Do the agreements comply with current legislation and regulations?
- Are contractual rights optimally exercised, and are contractual obligations effectively fulfilled?
- Are there liability and cost risks associated with the existing agreements?
- Are measures necessary to limit liability and cost risks?
- Are there areas for improvement to organise business activities more effectively?
How can we help you?
Do you have questions about organizing, implementing or expanding your legal operations? Our service owner, mr. Ans Duthler or her colleagues, are happy to discuss your specific case.
What is our approach?
The purpose, scope and scope
We agree with the board of directors and management about the purpose, scope and range of the baseline measurement so that we can manage expectations about the baseline measurement results. For example, the baseline measurement can focus on the organisation of one business activity or several business activities (e.g., personnel management, purchasing, etc.).
A project leader is appointed who, together with company employees, makes an inventory of the current legal operations and maps it out. Then, it is tested whether the legal operation is effective and cost-efficient. Finally, a reference frame is created by the company size, the nature and objectives of the business activities, relevant legal frameworks, and the number of legal proceedings to be expected per year.
What is the role of the employees?
There are many reasons for performing a zero baseline measurement. Often, they are signals from employees about bottlenecks and areas for improvement, high costs of conducting lawsuits and/or disproportionate administrative and organisational effort and expenses to meet contractual obligations.
We see it as our role to give these employees ‘space’ to identify the points and place them within a broader framework. Gaining mutual trust is built during the inventory conversations with employees and is later necessary for successfully implementing a more effective legal operation.
By performing a zero baseline measurement, the company management addresses the signals from the employees and an appropriate remedy can be taken.
What is the influence of laws and regulations?
New legislation may give rise to explicitly organising the legal operation for business activities. Relevant legal changes supplement the bottlenecks and areas for improvement.
Reflecting on the existing contract set and the processes of preparation, contracting and contract management on inventoried business activities give an impression of how well the company is organised. In addition, an estimate of the maturity level of the legal position is made, taking into account the bottlenecks and areas for improvement.
By performing a baseline measurement, the company management addresses the signals from the employees and an appropriate remedy can be taken.
The report consists of a report of findings and an action plan for setting up legal operations or for implementing points for improvement. This report is minimally necessary for the management to take the next step. It may be a reason to change the scope and scope of the baseline measurement and/or prepare a business case.
Awareness and training programs
The rationale behind a more effective corporate legal function is easy to pierce (see elaborations on the corporate knowledge base). However, organising a legal operation can be challenging.
Company-specific knowledge and change management for the corporate legal function can offer a solution. Including the baseline measurement results in awareness and training programmes is recommended. Such programs are necessary to create support among management and employees when organising the legal operation.