Toward a Strategic Management Perspective of Legal Departments

Abstract

This chapter proposes a new reading of legal management in conjunction with the strategic management perspective. Grounded in theoretical frameworks such as the resource-based view and dynamic capabilities approach, the chapter examines the transformation of legal departments from traditional cost centers into a strategic assets management unit, emphasizing the integration of strategic management principles into legal management. Specifically, the chapter highlights how strategic management-based approaches, which leverage technological advances and legal innovation to align with organizational objectives and enhance value creation, can be extended in the legal context, especially to understand many aspects of legal management such as legal innovation, legal agility, legal talent management, and legal performance. In doing so, it advances the Law & Management approach underlying this volume and its potential to redefine the role of legal departments within organizations. To support and illustrate the theoretical developments, practical examples based on a pioneering case study of Ubisoft’s legal department are discussed throughout the chapter.