For a long time, the main function of the legal department of companies and law firms, which offer support, was to manage litigation. In other words, lawyers and managers were more concerned with the management of lawsuits than with understanding the reason for filing them.
It happens that both the cost of the administration of lawsuits and the legal costs themselves have a significant impact on the companies’ budgets, making a new mentality and new tools necessary.
Due to the high cost of judicial demands, companies are currently more concerned with prevention than with remedying. Precisely because of this, after legal auditing, legal intelligence has been growing and gaining space in the corporate scenario.
What is Legal Intelligence
Every lawsuit that is filed against a company obviously has a reason. Most of the time, lawsuits arise from the existence of non-conformities within the company itself, which, if not cured, will generate more and more new actions.
The role of legal intelligence is precisely to map out what these non-conformities are, directing them to the competent departments so that they create policies of good practice to combat the problems caused by them.
This kind of work was often done in a timely manner, through legal audits. However, with the new technologies, which allow access to data full time through software, today it is possible to incorporate the activities of legal intelligence with the departments, implementing this preventive culture in the day to day of the company.
Legal intelligence as legal services
Just as many law firms have specialized in auditing and due diligence, legal intelligence has also become a type of service whose demand should grow. Precisely because of this, entrepreneurial lawyers, who are keeping an eye on market trends, know that legal intelligence is also a service that can integrate the activities of firms.
Most of the firms that work with companies, work directly in the front line of litigation, i.e., are the firms that write pieces, promote agreements, attend to hearings, take care of the steps in the process, among other actions. Obviously, the legal strategies are discussed with the contracting company, but, in general, it is the offices that offer all the legal support.
For this reason, legal intelligence services can be a great solution offered by law firms, since the potential client for this type of service, in general, is already a client company.
Legal intelligence: more than fewer processes
Legal intelligence is much more than a tool that serves to reduce the incidence of lawsuits and the cost with litigation. It is also a good exercise for the company to review its practices and improve itself.
Besides reducing the number of lawsuits, legal intelligence also presents other “side effects”, such as the improvement of the environment, productivity and even the level of employee satisfaction.
Most of the time, non-conformities do not only generate problems and lawsuits that come from outside. They can also create bureaucracies and other practices that impede the agility and dynamics of internal procedures.
It is not always that a non-conformity generates internal impacts, however, what happens in practice is that the direction of good practices for the day-by-day of the company usually moves the departments as a whole, bringing a new mentality of improvement and improvement.
How to implant legal intelligence
Many departments are concerned about this issue. After all, how to implant legal intelligence in the day to day of the company. However, this issue is already quite advanced. This is because with the use of legal software it is possible to insert, catalog, and measure almost any type of data.
This type of information can also come directly from the law firms that, in general, deal with the front line of corporate litigation. These functions, by the way, were little explored by many departments, which were more concerned with entering data for the administration of processes.
The part of data collection that can identify non-conformities is practically automatic. And once identified, all the legal department needs to do is direct the corrective demands to the responsible sectors. The legal intelligence has been creating so many positive impacts that the use of this tool is growing in the corporate environment.