This Case is about STRATEGY EXECUTION
PUBLICATION DATE: October 01, 2014 PRODUCT #: SMR500-HCB-ENG
Businesses have increasingly understood that legal abilities are critical for on-going corporate success, and they comprehend the value of working with legal counsel.
In their own research, the writers have developed a framework that could help executives identify the various ways that legal strategies could be utilized to accomplish various corporate aims, for example, identification of value-creating chances. The framework includes five distinct legal nerve pathways, which the writers describe using cases including United Parcel Service, Microsoft, Qualcomm and Xerox. In order of least to greatest tactical impact, the five nerve pathways that are legal are (1) avoidance, (2) conformity, (3) prevention, (4) worth and (5) transformation. In the avoidance path, supervisors view the law as an impediment to their desired business aims. Businesses running in the avoidance pathway will most likely have a failure or lax internal controls to perform due diligence, and this strategy can result in catastrophe. Businesses in the conformity pathway understand the law is an unwelcome but required restraint, and they think as a price that must be minimized essentially of conformity.
For companies in the prevention nerve pathway, supervisors take a more proactive strategy, utilizing the law to preempt future company-associated hazards. For businesses in the transformation path,executives have incorporated their legal strategy with the value chains of significant outside associates but within the organization’s various value-chain actions. Locating the proper path that is legal for a specific firm demands much more than simply a thought of the entire business model.
Other crucial components comprise managers’attitudes toward their degree of legal knowledge as well as the law, the sophistication of legal counsel and, in particular, the capability to work with supervisors to accomplish strategic company aims of the legal section.