With the changing face of business and an uncertain business environment during recent years, there is an increased need for businesses to address operational management of legal entities. There is a focus on businesses needing to simplify compliance, reduce risks, improve transparency and find ways of saving costs and improving outcomes. Strata Management companies such as WA Strata Management have identified that an important factor in the supervision of legal entities is through simplifying processes of management of legal entities. Following a step by step process provides a framework for businesses to implement these new strategies and greatly improve operational administration of legal entities.
Review Existing Legal Entity Structure
Before any changes can be implemented it is important to get a clear idea about where the business is at in terms of its legal entity management. Reviewing the existing legal entity structure will provide a clear view of the whole picture, including where the business needs to go.
Isolate Areas for Immediate Success
As well as identifying areas for improvement, an important part of the process is to identify and isolate areas where there can be immediate successes and wins for the business. Once identified, these prospective successes need to be carried out immediately and made to happen accordingly.
Plan and Reorganise
The next step in the process is to create a plan for reorganisation of the running of legal entities, and make the appropriate changes where needed. WA Strata Management sees that having a clear plan is a crucial stage in ensuring success during the process as the reorganisation is underway to ensure success.
The structure of the legal entity management organisation needs to be managed proactively and adjustments made according to what is needed as the process evolves. Over time, there may need to be changes made to the structure so there should to be a continual supervision of what is needed and adjustments made accordingly.
Define Processes for Ongoing Management
As a part of the operational management of legal entities, there needs to be clearly defined processes for ongoing entity management. These processes need to include the creation of legal entities and procedures for eliminating them as needed.
Revisit and Revise
In critical times during the process it is important to revisit and revise the operational management of legal entities, especially during critical times such as the acquisition or a divestment.