Transforming Entity Management for the Edge You Need

In large corporations, the struggle to implement effective entity management solutions remains a widespread challenge. But why does this persist, and why does it matter? The answer lies in the profound impact this issue has on businesses today. A staggering 89% of organizations still face obstacles in legal entity management, and nearly two-thirds lack access to reliable global legal entity data. This isn’t just a technical hiccup—it’s a critical compliance issue that can lead to everything from delays in license renewals to complications in business transactions such as divestments or acquisitions, ultimately translating into multi-million dollar losses.

Simply purchasing software to store data won’t solve this problem. The “garbage in, garbage out” principle holds true: no matter how advanced the software, it can’t fix poor-quality input. The real challenge goes beyond software acquisition—it’s about overcoming the complexities of maintaining accurate, reliable datasets, ensuring their accessibility, and tapping into the right local expertise.

The Real Hurdle

The primary obstacle isn’t resistance to technology itself; it’s the complex interplay of human factors that hampers success.

Decentralised Management: In many large organizations, entity management is fragmented and often split between departments like finance and legal. This division leads to data being scattered across silos, creating barriers to ownership and accountability. With so many stakeholders involved in compliance, the reliability of data naturally suffers.
Resistance to Change: Change can be difficult, especially when entrenched practices are deeply woven into the fabric of an organization. The reluctance to break established habits can prevent new technology or processes from taking hold, resulting in unreliable datasets and hidden costs.ure in adoption, rendering datasets unreliable and incurring hidden costs.
Lack of Clear Ownership: Legal teams, already under significant pressure, often juggle corporate secretarial tasks alongside their other responsibilities. Without clear ownership of entity management, information becomes delayed, incomplete, and lost in the shuffle of multiple departments and external partners.
Localized Expertise: Expertise in local markets is often siloed within specific teams. When key individuals depart, the valuable knowledge they hold goes with them, forcing organizations to incur significant costs to replace it.

Tackling the Entity Management Challenge

Start with a Clear Vision: Begin by gaining a deep understanding of how entity management aligns with the broader operations of the organization. Craft a vision statement that emphasizes the importance of robust entity management and aligns it with the company’s overarching goals and future strategies.
Prioritize Change Management: Successful implementation hinges on effective change management. Designate internal champions in every affected department, foster a shared vision across the organization, and drive early wins to build momentum. Overcommunicate to ensure everyone is aligned and committed to the process.
Speed Up Onboarding: Minimize the gap between signing the contract and fully onboarding onto the new solution. A smooth and swift implementation ensures that disruptions are kept to a minimum and the transition remains seamless.
Choose the Right Solution: Select a solution that directly addresses these challenges. Klea, for example, brings innovative features such as streamlined data onboarding, intelligent document workflows, secure data access, and local expertise, creating consistent, reliable workflows. The result is reliable datasets and the freedom to focus on strategic, value-adding activities.

If you’re intrigued by the potential of digital transformation in the legal world, be sure to dive into our other blog post, Unlock Efficiency and Triumph in Entity Management with Digital Tools, where we explore more innovative strategies and tools that can revolutionize the way legal teams work!