A Path to Effective LER

“We just need someone internally to take control of the LER program.”

That comment we received from an over-stretched senior leader captures a reality we see repeatedly in complex organisations: simplification is recognised as important, but rarely set up to succeed.

This was a recurring theme we were seeing across organisations grappling with large-scale restructuring, including Legal Entity Rationalisation (LER). Although it wasn’t new, it refined our thinking about what was really missing from many programs and ultimately shaped the approach that became synonymous with JC Consulting.

James and Cameron were managing LER programs within a Big 4 environment, including for global organisations. In one such group, responsibility for the LER program sat with a senior functional leader who was also accountable for a broad portfolio of operational and transformation initiatives, leaving limited capacity to drive simplification as a standalone priority.

Within a matter of months, it was evident that LER is not “business as usual”, but a distinct restructuring exercise requiring specialist expertise and a more deliberate approach to execution.

We describe LER as “a mile wide and an inch deep”. It cuts across the organisation. It touches all functions, some with only a passing reference check; others with a far greater impact (tax, finance, legal, CoSec).

Legal entity rationalisation is also highly technical. Successful programs require specialist restructuring expertise combined with disciplined delivery – clear ownership, coordinated execution and sustained momentum over time.

There is little margin for error. When entities are being wound down, precision matters. Assumptions quickly become risks: legal agreements must be identified rather than inferred; asset positions must be fully reconciled rather than taken at face value. In complex groups, the most critical issues often sit off-balance sheet.

Over time, one pattern became clear: organisations that deliver effective simplification combine restructuring advisory capability with hands-on delivery. Simplification succeeds when it is treated as a leadership discipline, not simply a technical exercise.

That thinking underpins the JC approach. Our work focuses on embedding the right capability alongside client teams – bringing together restructuring expertise, delivery discipline and an understanding of how decisions are made within complex organisations.

In practice, this often means working alongside clients to shoulder the execution burden, providing project management, finance and operational support while coordinating tax and legal input through a single, integrated structure.

Done well, legal entity rationalisation creates organisations that are simpler to govern and easier to run. The challenge – and the opportunity – lies in approaching simplification as a deliberate, long-term discipline rather than a one-off exercise.