The heat, as they say is well and truly on. In an environment in which businesses are under daily pressure to cut costs and reduce headcount, the cost of so-called ‘service departments’, such as in-house legal, are the first to be put under the financial microscope by finance departments that are quick to make unfair and often inaccurate comparisons with other, more obvious value creators such as marketing or sales departments. The truth is, however, simply a problem of perception.
In a recent survey ( Legal Week, 14 October) the average cost of an in-house legal team was found to be about 1% of a company’s total budget. If properly managed, this team can be a powerful and cost effective tool for creating and maintaining value. In-house lawyers know this – the trick is convincing the business. The five-point plan below may offer some help.
