I believe that all managers face, at some point, problems that seem to be bigger than the management itself. Here are some examples that I experience with my clients:
- When the implementation of a new management integration system does not work within the stipulated deadline and the expected solutions do not work (anyone who has participated in the implementation of SAP, TOTVs, etc. systems will understand what I am talking about).
- When a leading employee goes to the competition in place of a manager who had a health problem and had to take leave for many months.
- When a legislative or regulatory change impacts the business.
- When there is a sudden death of a partner.
- When the partners cease to understand one another.
- When a news report tarnishes the image and integrity of the company.
- When there is a drop in revenue.
- When we have a problem with the quality of products or services.
In situations such as these, the legal department is immediately called upon to assist in the “crisis management”. Upon arriving at the first meeting, since I am “on the outside” of the situation, the first analysis I make, however, is not legal; it ends up being more of a microeconomic analysis of the situation, to check whether the situation is critical or emergency.
I call critical the situation of news being published, because in this case I understand that decisions and measures must be taken immediately to stem the crisis. Emergency situations, on the other hand, are those that may negatively impact the business in the short and medium term.
So, based on this analysis, together with the company, I begin to participate in the process of change and adaptation to the new situation. And each company has a different organizational culture. Some prepare a committee with the main managers, draw up a plan and proceed to execute it; others prefer that the matter be restricted to a small group.
Regardless of the organizational profile of the company and the manager, my position, as a lawyer, is always to outline the worst-case scenario, foreseeing all the risks involved and preparing the company for a potential moment of severe adversity. This is because I am of the opinion that if the company is prepared for the worst-case scenario, it will be able to prepare better for adversity.
In addition, I understand that there is an extra component in the management of a problem: intuition, prior experience, the ability to assess the personal and psychological profiles of those involved in the matter, the beliefs and the empathy of the manager.
It is at this point that the legal department must act, together with management, orchestrating the company’s resources, its weaknesses and its strengths, so that the management problem does not become a legal problem to be discussed in court or arbitration.
It is precisely this capacity for orchestration that I consider a great differentiator of the lawyer, since the lawyer will be able to contribute to unraveling a problem, analyzing reality without the myopia of emotional involvement, outlining strategies, executing tasks and continuously evaluating the results to verify whether the course needs to be changed.
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