RSS SyndicationThe problem: Your company is growing quickly. Your operation is groaning under the weight of unfilled orders as you strain to ramp-up production. You’re having trouble finding the employees you need to keep up. Customers have to wait longer for products and your customer service department is having trouble responding promptly to problems. You’re putting out so many fires that you should be wearing high boots and carrying a hose. You’re dealing with day-to-day issues when you should be focused on longer term goals.
In his book, Thinking Like An Entrepreneur, Peter I. Hupalo recommends, “As you’re planning your company’s growth … take the time to evaluate the systems you have in place”. One key but often overlooked asset is your general counsel, who can play an expansive role as you review the roles and responsibilities of your personnel and adequacy of your systems.
Are you tied-up in negotiations with strategic partners, suppliers, distributors or others? If so, then insert your general counsel early in the process and let her take some of the weight off you in negotiating the deals. Trying to find additional real estate into which your operation will expand? Tell your general counsel what your space objectives are and let him deal with the details involving the real estate broker, the landlord, the contractor and any other party to the process. Ensnared in ongoing litigation that consumes too much of your time? Your general counsel is particularly well-suited to manage it and its cost, making sure that the right moves are being made. Are employee complaints increasing? Let your general counsel work with your HR manager to defuse these potential threats to the smooth operation of the company.
Beyond that, your general counsel can play a big role in developing and implementing procedures to strengthen the backbone of the business in many areas, including the following:
· Employment policies and procedures and legal compliance.
· Procedures for protecting intellectual property assets.
· Preservation of trade secrets and confidential information.
· Procedures for extending credit and collecting accounts receivables.
· Development and use of contract forms and management of contracting process.
· Maintain corporate records.
· Assure overall compliance with legal requirements.
Most fast growing companies do not have general counsel. They’re using a traditional hourly rate law firm or outside attorney acting as general counsel. Not being on-site, these lawyers are usually not exposed to the day-to-day issues that require attention and react only when called. The company may have considered hiring an in-house general counsel but does not have enough work for a full-time GC or the budget to pay for it.
The recent availability of part-time, cost-effective and experienced general counsel services fills a gaping hole in the marketplace, especially for those fast-growing companies that may have outgrown “by the hour” legal services.