With less reliance on external legal counsel, not only are in-house legal teams making significant savings, but their lawyers are also becoming more focused on the business, and this is leading to a greater integration between the business and its lawyers.
As we reported back in February, in-house legal teams are continuing to scrutinise their external legal spend. A re-think on the hourly billing process and the move to take some roles in-house are both ways in which companies have looked to make savings. In the immediate term, this has led to significant cost savings but another outcome has been that in-house legal teams are getting increasingly involved with the business.
The business wants our expertise in legal and compliance matters as ever, but also is looking to us to play a full part in the business decision-making process.
Sue Brooks, Chief of Staff in the Barclays Group Legal and Compliance team highlighted to Badenoch & Clark’s Connections magazine how much in-house lawyers’ roles are changing. “It’s notable that our role is changing swiftly. The business wants our expertise in legal and compliance matters as ever, but also is looking to us to play a full part in the business decision-making process.”
In-house lawyers have tended to be more commercially-focused than lawyers working in private practice or the public sector, but this change in strategy ensures that this will become even more important in the future. For those lawyers interested in expanding their skillset and experience, this can only spell a positive future – not only will it lead to more interesting and varied work, but it will also stand you in good stead for when the time is right to move.
Dr Solomon Osagie, TSYS International’s Corporate Counsel summarises the benefits well. “This is actually strongly motivating for in-house lawyers as it’s putting the onus on them to up their skills, gain expertise in at least a couple of specialist areas and acquire the kinds of specialist knowledge that will be very attractive to recruiters in the future.”
One Comment
I have been an in house lawyer for the past 7 years and I have played a commercial role within my organisation from the outset. After 14 years in private practice it is very refreshing to be part of the running of a business and I am surprised to read that senior in house lawyers are only just becoming intergrated into the businesses they represent. It is extremely sad that it is only now that this is happening, if indeed that is truly the case.
To be a good in house lawyer means to know your business. The only way that can happen is to understand its objectives, ambitions and working practices at the coal face. This knowledge is what seperates, more than anything, the expertise of an in house lawyer from that of those in private practice. Sadly all too often in house counsel are very young and have little prior experience of private practice or the commercial world. Businesses should be prepared to pay more for senior counsel who can take crucial business decisions, which include weighing up commercial risk and faciliating transactions rather than merely being or being perceived as a block or hurdle to such transactions.
Legal Directors ought, indeed must, sit on the Boards of their respective businesses and play a pivitol role in the running of those businesses. I have heard arguments that this can compromise their advice and neutrality. I have never found this to be the case, I advocate and entirely agree with the article that in house counsel should play a role in the business decision making process.