In his auto biography, "My American Journey," former Joint Chief of Staff Chairman General Colin L. Powell has mentioned several tests to determine when the nation should commit to battle:

Commit only if vital interests are at stake.
If committing, do so with all the resources necessary to win.
Go in only with clear objectives.
Be flexible to match the commitment to the objectives, as objectives change.
Only take on commitments that have the support of those who must bear the burden.
Commit forces only as a last resort.

Vital Interests: An employee has left with vital trade secrets. A former partner has left with the cash of the business. These are emergencies that demand an immediate response. Usually, though, the threat is less clear. A former employee has left, in a hurry, but the reason for leaving is unknown. The question of a vital interest depends on the situation. An attorney can help assess the situation and suggest solutions short of litigation.

Necessary Resources: Sticker Shock. Even well-off clients are stunned by the resources necessary for litigation. In California, the costs of some intellectual property disputes are covered under general business liability insurance policies as "advertising injury." Some business principals may have personal liabilities covered by their home general liability insurance. Some contracts provide that one side will indemnify the other for certain actions. The first question after "what happened?" should usually be, "what insurance policies might be available to cover it?" Even if no one indemnifies you, there are other ways to curb costs.

The first is to take precautions to prevent the dispute from occurring. An attorney is most cost-effective when a relationship is being formed. Ignoring the potential for disputes compounds their destructive capability. Cheaper alternatives to full-blown litigation, such as mediation or arbitration, can not only lower the cost of a dispute, but also keep the relationship intact.

Attorneys can also structure contracts to lower the costs to the prevailing party when a dispute occurs. The "American" rule is that litigants pay their own attorneys' fees. However, if parties agree, the winner may get attorneys' fees also.

Litigation requires active participation of management. Employees up and down the chain have to be consulted on the facts, called to deposition, review papers, or otherwise be taken away from more profitable pursuits. There are also intangible costs. Litigation strains relationships, especially when the combatants are formerly close associates. People caught in the middle have their loyalties sorely tested, and respond by avoiding both sides.

Specific Objectives. Deciding the objectives of litigation is difficult. Crushing the opposition can be rarely achieved at low cost. Reaching an objective in litigation means knowing what is possible. Civil courts cannot put people in jail. Forcing a person back to work is very rare. Some outcomes such as preventing someone from benefiting from your labors is easily achievable. In most cases, only a monetary solution will work. A litigant must balance the size and prospect of the award against the costs of achieving that award. Judges and juries often take a view different from that of either litigant. There is never more than an 80 percent chance of winning.

Preparing to Change Objectives. Litigation, like war, is never static. A litigant must always be prepared to change the means and the goals. Documents supporting the case are never found. New case law alters the field of battle. Witnesses cannot be found, or will not get involved.

Good litigants are ready for these ups and downs. If the million dollar award no longer looks so certain, be prepared to take a more modest, but certain settlement offer. Alternatively, a defendant may avoid later costs and risks by making a more modest offer early on. These ups and downs are part of the ride.Support to the End. Litigation's initial "rush" can be invigorating. Significant cases now take about eighteen months to reach a courtroom - much faster than before, but still a long time. The initial reasons for the litigation are often forgotten in the meantime.

Litigation as a Last Resort. Litigation is too expensive to be the first reaction to any crisis. Often, those interests can be served through litigation's alternatives. Litigation should be considered only once the alternatives are ruled out.