Insights for SMBs Seeking to Optimizing Legal Support
One way businesses can improve their profitability is by getting the most value from their legal support. This can be particularly challenging for small and medium-sized businesses (SMBs), which may not have the resources or need for a full-time in-house general counsel or the budget for an outside general counsel attorney. In these cases, Fractional Chief Legal Officer (CLO) services can be an effective solution. Here are some tips for getting the most value from Fractional CLO services:
Understand your legal needs: Before you start working with a Fractional CLO, it's important to understand your legal needs and goals. Take the time to work with an attorney to assess your business's legal risks, compliance requirements, and growth objectives. You should not do this on your own! This will help you identify the specific areas where you need legal support and ensure that you choose a Fractional CLO with the relevant expertise and experience.
Communicate effectively: Effective communication is key to getting the most value from Fractional CLO services. Communication with your legal support team should be frequent, regular, and efficient. Establish clear lines of communication with your Fractional CLO and ensure that all relevant stakeholders in your organization are kept informed. Provide your Fractional CLO with comprehensive information about your business operations, policies, and procedures, so they can offer tailored guidance and support.
Set clear expectations: It's important to set clear expectations with your Fractional CLO from the outset. Work together to define a scope of work that outlines the specific services and deliverables you require. Agree on timelines, milestones, and success metrics to ensure that everyone is aligned and working towards the same goals. Use S.M.A.R.T. goals to ensure you and your legal support team stay on the same page! Establish protocols for how you will communicate and collaborate, including regular check-ins and progress updates.
Be proactive: Legal issues can arise quickly, so it's important to be proactive about addressing potential risks. Don't wait until you think you need a lawyer (see Tip #1, above). Instead of being reactive, be proactive about legal support to ensure you have the best chance to prevent risks from becoming problems.
Engage your Fractional CLO in regular strategic planning sessions to identify and prioritize legal initiatives that support your business objectives. Encourage a culture of proactive legal risk management throughout your organization, with your Fractional CLO providing training and guidance to employees on how to spot and escalate potential legal issues.
Monitor progress: Regularly monitoring your Fractional CLO's progress can help you ensure that they are meeting your expectations and providing the legal support you need. Having a regular reporting process that's clearly understood by everyone is key to success! Establish a system for tracking the status of legal projects and deliverables, and schedule regular review meetings to discuss progress, challenges, and opportunities for improvement. Use data and metrics to evaluate the impact of your legal initiatives on key business outcomes, such as revenue growth, cost savings, and risk reduction.
Leverage technology: Technology can be a powerful tool for optimizing Fractional CLO services and improving legal efficiency. Work with your Fractional CLO to identify opportunities to automate routine legal tasks, streamline workflows, and improve data management. Implement a secure, cloud-based platform for storing and sharing legal documents and collaborating with your Fractional CLO and other stakeholders.
By following these tips, SMBs can get the most value from their Fractional CLO services and improve their profitability. With Fractional CLO services typically costing around one-third of the total compensation for a full-time, in-house CLO, SMBs can access high-quality legal expertise at a fraction of the cost. By leveraging the strategic guidance and support of a Fractional CLO, SMBs can build a strong legal foundation for growth and success.
