Bentley Systems interview: How to manage an endless workflow

March 11, 2014 | BY

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Stan Abrams heads the Asia legal team at Bentley Systems and has practiced in China for 15 years. He explains the importance of balancing internal and external work processes in light of changing regulations and seeking individual experts for outside counsel

When did Bentley Systems enter China and how has it since developed in the market What plans does it have to expand in China

We have had users of our software in China for quite a long time, but strictly in terms of foreign direct investment, Bentley set up its first China FIE in 2002. We have since expanded both organically and through acquisitions, each of which has contributed differently to our current situation in terms of staff levels, geographic locations and business focus. We will continue to take both growth paths as the country and market develop and as specific opportunities arise.

What are the main regulations in technology that are relevant to the business

Bentley is a “technology” company insofar as we create and commercially exploit intellectual property. But the good news is that in China, software in general is nowhere near as heavily regulated as other forms of technology in industrial sectors such as pharmaceuticals and energy. Moreover, as our product is business software, we also avoid the regulatory challenges faced by software firms with entertainment products, such as games. The result is that in terms of compliance, we spend far more time on traditional corporate issues, as well as HR, tax and facilities, than we do with technology transfer or permitting.

What are the biggest recent legal developments that affect your work

The recent changes to the Company Law are huge implications. Even if one just looked at registered capital and annual inspection liberalisation, it's clear that the government is making a concerted effort to streamline administrative processes, no doubt in an effort to boost private sector growth. Other notable changes include the labor dispatch rules and (depending on the city) VAT regulations. None of these issues has fundamentally changed the way that Bentley does business in China but they affect our internal administrative procedures. For my team members in Beijing, this has necessitated some short-term adjustments, including to our standard agreements, but will ultimately mean fewer compliance and other administrative tasks.

What are some daily challenges faced by your legal team

My team is responsible for nearly all legal issues in the region, so we could be hit with just about anything on a given day. Proper response to, and management of, workflow is the key. In-house legal departments have different ways of categorising tasks, often putting commercial work in one category and essentially everything else in another. Those designations hold up fairly well, but another useful delineation concerns prioritisation.
Tasks with deadlines, including most corporate compliance work and matters relating to specific commercial transactions, are like a never-ending river. In contrast, policy review and implementation, including tasks such as training, IP registrations and creation of contract templates, could be seen as stepping stones or bridges that help us cross that river so we can get to the next one as our business grows. Day by day, it is tempting to simply fight the current as we negotiate contracts, deal with HR disputes, and work our way through the annual corporate compliance calendar. More importantly, however, is the review and implementation of efficient, compliant policies. For example, any time spent setting up tight contracts and educating sales staff and distributors on anti-corruption policy is well worth it. The challenge is balancing both types of work given the capacity and expertise of the team.

On what occasions do you turn to law firms for help How do you select the firm

In a perfect world, we would be dealing with a single international firm and one point of contact, a firm with broad expertise and representation in all jurisdictions for which my team is responsible. Although many managing partners throughout Asia will disagree, I do not believe this fantasy law firm exists. In many jurisdictions, the best one can expect is to find individual experts who are also responsive and professional; if you can identify more than a couple of such lawyers in a single, integrated firm, consider yourself lucky. As a result, we work with a variety of outside counsel, from M&A groups at multinational firms to very small local labor firms and individual litigators. In addition to transactional matters, we often need opinions on specific points of law, projects that are often ad hoc and driven by compliance deadlines; a majority of this work goes to lawyers who simply respond on a timely basis. Those who are short-sighted and ignore the small Q&A requests are less likely to make the short list when it comes time to screen counsel for an acquisition.

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