In-House Counsel

Truth To Power

One of the most important jobs of an in-house lawyer is telling your boss, "no."

Like many towns, we have a Little League franchise. And like many children’s sports leagues, it is rife with politics. Adult coaches living out their unfulfilled high school or college days, parents unhappy with the way things are run, and basic dysfunction; at a cost of $150 per kid annually. (I am well aware of travel club costs, but that’s not germane here). A coach caused uproar the other day by exposing some of the backdoor methods in which kids are placed on certain teams (“loading”). And parents were righteously indignant. The director of the league called this guy and asked “why would you do that?” The answer he gave, “it needed to be done.” A shakeup was required, because the way things were run, by the powers that be, were making a one time strong league into a mess.

The political structures of our companies are not small town sports leagues. But the basics are identical; a pyramid of power filters down to the bottom, through policies, processes and “they way things are done.” The CEO sets the tone from on high, and this filters down to the day to day operations of the company. As in-house counsel (and generally, most in-house counsel are in small law departments) most of you have at least some contact with the CEOs of your companies. And it can be daunting, especially at first, to be responsible for reporting and counseling the person in charge. Your company may employ hundreds or even thousands of workers, and you, as the legal counsel, are responsible for offering sound advice that affects them in some way. The most difficult aspect of your job is telling the boss that she is wrong, or headed in an unsound direction.

Most companies like to tout the empowerment of their employees, but practically speaking, no one likes to be told no, or that they’re wrong. Learning the ability to speak truth to power in a calm and rational manner can enhance your immediate position as a trusted advisor, as well as serve you in your in house career. In private practice, we are a bit removed from the everyday contact with clients. Depending on our role at the firm, we may never speak directly to a client. One of the benefits of in-house counsel is day to day client contact. While I work at a company with 84,000 employees, I have only once been asked to report to the CEO, and it was a smallish matter at that. We have levels of reports beyond my pay grade that have that sort of contact. In your company, you likely have a direct line to the CEO, and it is important that you use that line when necessary, and that you have fully prepared for any question that may come of an issue. This is basic firm associate training, but it is imperative when dealing with a CEO who has the ability to decide an issue on the spot that will have immediate impact.

You have to learn how to say no in several different tones. Like Travis Bickle practicing his lines in the mirror, your emphasis on your advice will stem from the import of the decision on which you are opining; the really fun times are when you get to assist on a strictly business issue. (Sarcasm). All issues in-house are business issues, and they are all legal issues. It is up to us as counsel to begin to parse the difference and learn when to say when.