Constant change is the new normal in business, and uncertainty the only certain for modern executives. To stay relevant in a fast-changing world, market leaders must continually change and innovate as well. Thankfully, one simple shift in thinking can help your legal department and organization successfully stay ahead of the curve. Make the move to a mindset where every strategic choice is critically-appraised and routinely reevaluated from an accounting standpoint that takes a future-focused outlook and more long-term horizon into account, and you’ll gain the ability to build a more profitable and productive organization that’s both capable of achieving sustainable growth and navigating whatever the future holds.
Traditional management strategies typically emphasize cost-cutting. But it bears reminding short-term gains often come at the expense of a both a legal department and organization’s long-term health, and ability to compete. To get ahead in highly disruptive marketplaces, it’s instead vital to instill a sense of transparency across the enterprise and create a culture that champions innovation, optimization, and smart decision-making. Rather than curtail spending, this means having to consistently reinvest in new initiatives that best support your organization’s vision and bottom line over an extended horizon. Adopting a more critical thinking model – wherein expenses are routinely monitored, and resources continually reallocated to best optimize operations, output, and growth – can not only help you consistently find the capital to do so. When you make it a cornerstone of your leadership strategy, it can also help you instill a sense of ownership, entrepreneurship, and accountability in employees that serves as a vital source of growth, learning, and competitive advantage going forward.