There are rules and regulations that companies must follow, laws that they must follow. An appropriate OCOL ensures that the company does not face lawsuits from customers or tax violations. An OCOL in senior management is crucial as they establish contracts as lawyers and other legal documents. If the company is involved in litigation, the general counsel may represent the firm directly, lead the legal team that does so, or choose the lawyer who will do so. The OCOL may also be a member of the company`s operating committee and is supervised by the CEO. OCOL supervises the firm`s in-house lawyers. When a large, publicly traded company hires a new OCL, it can make headlines, as can hiring a new COO or CFO. An OCOL usually has a long career in law. Positions an OCOL can hold before becoming an executive include Chief Legal Officer, Senior General Counsel and Partner of the firm. A Chief Legal Officer (CLO) is often the most powerful legal manager in a publicly traded company. The Chief Legal Officer (COO) is an expert and officer who assists the Company in mitigating its legal risks by advising other officers and directors of the Company on all major legal and regulatory matters facing the Company, such as litigation risks. To become a CEO or COO, qualifications don`t matter.
However, to become a CLO, a law degree is a must and a few years of experience in corporate law, as few organizations want new lawyers graduating as department heads. The OCOL must have a complete knowledge of the potential lawsuits that a company can face in different situations and resolve legal issues. First, we lead with measures to manage external consultants` expenses, shorten contract cycle times and respond to internal legal requests. An OCOL must link these measures to the company`s objectives and show their team that good legal performance in turn has a positive impact on the company`s measures. For example, understanding that reducing contract cycle time is directly related to reducing costs for the business and increasing revenue. Technology is also a big part of the OCOL`s role, particularly integrating technology into the day-to-day practice of the legal team, creating efficiencies. Perhaps one of the most valuable assets an OCOL can offer the GC is its ability and vision to modernize the legal team by leveraging technologies such as case management, contract AI and workflow tools to achieve the best business outcomes. However, this is not without obstacles, as it means recalibrating the mindset and educating lawyers who are opposed to change and reluctant to embrace new technologies. Finally, the role of an integrator is paramount to the success of an OCOL – it acts as an intermediary between the legal and management teams and the entire company. This is achieved by understanding where the individuals within the legal team are best positioned to use their skills to coordinate with another business unit and build successful lateral relationships. For example, certain types of products must first pass regulatory approvals and each unit must then undergo an inspection before being offered for sale. A failure of this process and any associated breach – for example, by contamination – can expose the company to litigation.
All of this becomes possible because OCOL are there to guide them on their career path. Having a Chief Learning Officer sends a clear message that the company is investing in its employees and is ready to provide them with the tools they need to shape the future. Keeping the company informed of compliance issues and recommending an action plan to address those issues is also the responsibility of the OCOL. There is also an aspect of corporate governance in the role where certain responsibilities and functions fall on the OCOL to ensure that the company does not break any laws. This may include, for example, ensuring that the company conducts its hiring process in accordance with labor standards, complies with relevant product labeling regulations, complies with health and safety regulations, and submits reports required by government agencies.