Friday, June 06, 2008

There May Be Trouble in River City- episode 2


As my GC warned the day came when Superstar called and asked that I come to see him in his office. Since my meeting with my GC the official announcement of Superstar’s appointment of division president took place, and for the next couple of weeks a flurry of additional announcements took place describing new assignments in the Superstar’s division as he replaced or rearranged the management structure to his liking. This was not unusual; of course, management changes typically took place when new leadership was installed in a division. However, there was a different tone to these changes.

In the past one could somewhat predict the changes in personnel—it was sort of musical chairs, people changed chairs but the people were the same. This was different. Positions were filled by people no one had heard of before. Serious change was in the air.

When I arrived at Superstar’s office, he invited me in and was very cordial, but it was clear I was under review. He explained that it was his intention to re-examine every aspect of the division’s operation, including the way its legal issues were managed. His review of the legal area suggested that major expenses were being incurred in the litigation area. He said it was his intention to understand why that was occurring and then determine the appropriate response. He wanted me to undertake that effort.

As I walked out, two obvious options occurred to me, a more strident defense posture as a deterrent or a compliance program to improve the employees understanding of their legal obligations. But I was not sure, so I decided to consult Super Lawyer at our outside law firm, the ACE firm in downtown River City. We had long ago established a partnership (see partnership debate in prior blogs) in the manner in which we related—they could help I thought.

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