Efficiency in legal litigation management
Organizations that sell goods and services directly to consumers have a great challenge to manage legal cases and mitigate risks in all legal areas. In addition to the legal complexity of each business, there are important opportunities related to seeking greater efficiency for its internal processes.
Balance sheet data of major companies from different industries show that legal provisions represent a significant portion of annual revenue, blocking capital that could be invested. Moreover, on average 37% of this capital becomes effective in convictions that compromise profit for these organizations.
Source: Balances of 2014 of the main players in Brazil.
Regardless of these company sectors, there are some challenges that are faced by most businesses operating in Brazil today. Among them:
• INFORMATION AVAILABILITY AND QUALITY - availability of information on new and/or in progress legal cases, on time and with quality, enabling agile performance and consequently mitigating trials in absentia and minimizing conviction amounts.
Currently, the Brazilian legal system is being updated and migrating information related to legal procedures to electronic databases, which has facilitated and extended the coverage of data capture methods and automatic updates at organizations. However, at the administrative level there is still no prospect of data unification/availability in the network. The same happens for regional regulatory agencies.
• FINANCIAL CONTROL - efficient management for provisions, deposits in court and fees paid to partner offices, minimizing operating expenses and ensuring quick recovery of blocked amounts.
Many organizations fail to recover deposits in court at the time the cases are closed, missing an opportunity to free up capital so the company can perform its investments. Furthermore, when it comes to the management of fee agreements, the companies that work with many partners and variations in billing models may have difficulty in validating the charges and negotiating with the legal offices.
• PROCESS MANAGEMENT - compliance and operational efficiency from the formalization and optimization of processes, standards and policies.
Reducing the flow of documents and internal bureaucracy, without losing process traceability and compliance is a challenge for large organizations. Examples as an Agreement Policy, can provide flexibility when handling legal cases and reduce administrative costs and conviction amounts. We at Cosin Consulting, based on our experience supporting Legal Departments of our customers in modeling/designing operating models, implementation and continuous improvement, believe that to address these challenges it is necessary to act on different fronts in a coordinated manner.