Keep both camps among clients informed about legal costs: executives and financial managers

No surprise that we hear over and over about how important it is to tell business executives about legal costs the law department will incur on their behalf. These forecasts honor the Golden Rule and keep managers in the loop.

To tell the senior manager about anticipated legal costs does not end the obligation; the responsible law department attorney also needs to inform that manager’s financial staff. They are the ones who need to budget for the cost, report the details, or accrue for the expenditure (See my posts of Aug. 24, 2005 and Sept. 17, 2005 #4 about accruals.).