IT IS LIKELY HIGHER THAN YOU REALIZE
Cutting edge strategies, laser focused marketing campaigns, smart investments and a talented workforce will not alone ensure a company’s success. Every organization is competing for scarce resources and market share in innovative ways unheard of even five years ago. Therefore even the simplest business transaction risks conflict. Understanding, managing and planning for conflict so that it does not become a barrier to growth and prosperity should be of paramount importance to every company.
A shrewd organization accurately measures the total cost of any legal action before engaging. This includes not only the cost of legal services (internal and external) but also things like;
- Impact of market valuation
- Impact on future growth
- Ability to attract investors
- Reputational and social costs
- Ability to attract top talentt
The direct cost of litigation are steep with an average case time from filing to trial taking approximately two years. And according to a study done by Yale University, has no net wealth creating effect. When compounded by the cost and complexity of Electronic Discovery in most cases litigation simply doesn’t make sense. The fact that it has been found that companies who are deemed to be repeat litigants have fewer investors is simply another of the many negative impacts.
Should you wish to get a better understanding of the statistics and financial effects of litigation as well as the alternative dispute resolution options that restore control over what is often seen as an unmanageable process, please contact us.