Many industries are facing multiple disruptive factors: the COVID-19 pandemic, technology, political uncertainty, changing market dynamics or customer demand. Corporates are reacting to these changes by rethinking and streamlining their organizational and operational setup to address changing strategic objectives and introduce more agility into their businesses.

However, many corporates risk leaving considerable value on the table by failing to address and rationalize the underlying legal organizational structures. While functional teams are becoming more agile, the underlying legacy legal structures remain unnecessarily complex and burdensome to administer. These structures can also become an obstacle to effective corporate governance and efficient internal procedures such as accounting and tax management.

While tackling this can be challenging, there are a number of criteria that will lead to the successful simplification of a legal organization:

  • senior management buy in and support;
  • rigorous program and stakeholder management; and
  • subject matter experts across the diverse business, legal, governance, and tax functions.

It is a challenging combination; the rewards, however, can be substantial, particularly if this is done within a wider turnaround or restructuring program. The operational and organizational changes will be reflected in the legal structure, creating a more efficient and streamlined business in the long-term.

alixpartners legal organization simplification blind spot infographic 2020