Among the management approaches newly developed by and for companies to extend their influence, including beyond domestic markets, legal management ranks high. This is indeed vital for any company that aims to conquer new markets, especially abroad, by surfing on globalization: it meets these requirements necessary for successful internationalization. However, the type of legal management to be put in place also depends on the structure of the company.
Internationalization and its constraints
International expansion is a Holy Grail for any ambitious company; but it is accompanied by several constraints, including the inevitable multiplication of management positions across subsidiaries and branches, and the dispersion of shareholders. To compensate for the inexorable dilution of powers and responsibilities, it is then necessary to set up a coherent administration of each entity.
Each of these entities will thus operate with its services: local management, human resources, accounting, legal department, etc. A hierarchy is modeled on that of the general management in the country where the group’s head office is located, each with its own characteristics and its standards.
But how can such a multi-headed entity be administered? How can we ensure that each management position receives the same level of information, without having to send executives to the four corners of the world? How can we guarantee that decision-making is effectively relayed from the center to peripheral structures? This global governance is made possible by the principle of legal steering.
Structuring your legal management using software
The complexity of the structure of an internationalized company requires the implementation of efficient legal management. This can be supported by a software solution, a legal management tool that offers a global view of the constraints related to the administration of each entity. Such a solution has many advantages, including:
- Being able to find solutions that correspond to the scope of action of the entity concerned, legal, financial, and tax standards being different from one country to another;
- Obtain a clear representation of the legal frameworks of the different entities, and be able to consult the data from anywhere, at any time, in real-time (a fundamental advantage when it comes to saving time);
- Beyond just legal management, the possibility of administering all departments with management of financial information, production of accounting inventories, human resources management, etc.
Thus, a legal management tool adapts to all departments and all management needs of the company.
A tool that suits everyone
Contrary to what one might be tempted to think at first glance, legal management through a software solution is suitable for all structures, regardless of their size or area of influence. Large groups seem a priori to be the most concerned, given the number of subsidiaries and various entities that they own throughout the world, with all the constraints that such dispersion implies.
However, this is not the case. Centralized administration tools are just as well suited to smaller companies. This is true for groups that have only one or two branches abroad, but it is also true for SMEs whose presence does not extend beyond the borders of France, and who wish to expand their coverage of their territory by ensuring the most efficient management possible.
Under these conditions, a legal management tool does not deploy the same functionalities as those that are necessary for the operation of an international group. This does not prevent it from promoting the domestic performance of the company, both at the legal and tax level as well as at the accounting level. In short, everyone benefits.
The implementation of such a solution therefore opens the doors to internationalization. This is only possible, for a large or small structure, with the adoption of a tool allowing centralized legal management for better performance of the entities that orbit within the same group, and ultimately to achieve greater returns.
