Practical Tips for New In-house Counsel

Many companies today are launching internal legal functions or growing their corporate legal teams as a way to decrease and manage their external counsel spend. Lawyers who transition from private practice to in-house positions must adapt their skills and mindsets so they can be effective in their dual roles as legal counsel and business partner. This article summarizes some of the key differences between law firm and in-house practice and discusses practical suggestions to help lawyers successfully transition to in-house counsel positions, including how to: establish credibility within the company, set and meet expectations with internal clients, use effective communication strategies, and develop as a trusted legal advisor and valued business partner.

Enhance_Your_Practice_300x250Many companies today are launching internal legal functions or growing their corporate legal teams as a way to decrease and manage their external counsel spend. Lawyers who transition from private practice to in-house positions must adapt their skills and mindsets so they can be effective in their dual roles as legal counsel and business partner.

This preview of the full article summarizes some of the key differences between law firm and in-house practice and discusses practical suggestions to help lawyers successfully transition to in-house counsel positions, including how to:

  • Establish credibility within the company.
  • Set and meet expectations with internal clients.
  • Use effective communication strategies.
  • Develop as a trusted legal advisor and valued business partner.
  1. Know the Company

In-house counsel’s first step toward building credibility within a company is thoroughly understanding all aspects of the company and its business, including:

  • The business structure and type of entity.
  • The size of its operations and the number and type of people it employs.
  • The industry and the nature of its goods and services.
  • The locations of its operations, both domestically and internationally.
  • The business’s approach to taking risks.
  • The governance and decision-making processes, including the legal department’s role in making business decisions.
  1. Determine the Company’s Risk Profile

Public scrutiny of corporate risk management and risk oversight has intensified as a result of the recent financial crisis and the ensuing parade of corporate scandals. While the senior leadership is responsible for risk management and the board of directors is responsible for risk oversight, in-house counsel plays an increasingly important role in a company’s efforts to manage risk.

  1. Understand Internal Clients

In-house counsel frequently advise and collaborate with internal clients from diverse areas such as sales, product development, human resources, accounting and marketing. Counsel should consider that:

  • Many internal clients may have little comprehension of what lawyers do and may have worked with lawyers only infrequently.
  • Counsel’s relationships with internal clients may often be different from the relationships they had when dealing in private practice with clients who were lawyers and understood their work.
  • Internal clients may require more support and guidance from in-house counsel than they would request of external counsel who bill at hourly rates. Counsel should schedule appropriate follow-ups with internal clients to review legal options, discuss action items and provide other project assistance as needed.
  • Conflicts may arise. Counsel represents the company, not its constituents, and must avoid creating the impression that counsel represents an internal client in his or her individual capacity.
  1. Adapt to the Corporate Culture

Corporate culture is the personality of an organization, including its values, behaviors, beliefs and norms, which is demonstrated through how things are done there. Many factors can shape this culture, such as the company’s:

  • Management profile and the tone set from the top.
  • History and development (such as when and how the company was founded and the original values it espoused).
  • Industry.
  • Size.
  • Organizational structure (for example, whether management and administration are centralized or decentralized within individual territories, functions or business units).
  • Status as a privately held or publicly traded company.
  • Ownership as a domestic or foreign-owned company.
  • Development stage as a start-up or mature company.
  1. Promote the Value of In-house Services

The biggest adjustments for in-house counsel transitioning from private practice often are:

  • Moving from their role as revenue generator to a new role as cost center.
  • Having more limited resources in the corporate environment (for example, having less administrative and peer support and fewer systems, precedents and general know-how at counsel’s disposal).
  • Providing legal advice that minimizes risk sufficiently to enable the business to succeed.
  1. Become a Problem Solver

Internal clients may propose potentially lucrative projects that fail to properly account for risk. Counsel’s initial reaction to protect the company may be to say “no.” Repeatedly giving a negative response, without more, can lead to conflict with the client and counsel’s reputation as a naysayer and obstacle to the business. Counsel should consider the following strategies to overcome that negative perception:

  • Adopt a mindset of mitigating risk rather than eliminating it. Be prepared to assume some risk to give practical advice and solve problems. Risk management (rather than risk avoidance) based on the company’s tolerance for risk can make the company more competitive.
  • Suggest alternatives. Simply prohibiting a problematic business proposal does not help the company achieve its business objectives. Provide suggestions for minimizing the risk through alternative approaches.
  • Say “no” with credibility. When a negative answer is the appropriate response to a particular situation, say “no” to internal clients in a manner they can understand and accept.
  • Build relationships with internal clients. By building solid relationships with internal clients and consistently supporting them in positive ways, counsel can develop trust, value and influence, even when counsel’s advice is “no”
  1. Manage Work Efficiently

Competent in-house counsel are expected to be responsive to queries and deliver timely and appropriate work product to internal clients. This efficient time and project management are central to helping counsel:

  • Create positive impressions within the company.
  • Maintain the good will of internal clients.
  • Eliminate waste.
  1. Communicate Effectively

In-house counsel add value to the business when they can:

  • Quickly digest a lot of information.
  • Explain key points and complex concepts in a clear, concise and non-technical manner.
  • Enable management and other corporate leaders to make informed business decisions.

Counsel should consider the following steps to communicate effectively with internal clients and external business partners:

  • Speak the common language.
  • Listen carefully.
  • Tailor communications to the audience.
  • Explain risks coherently.
  • Communicate frequently.
  • Consider privilege issues.
  1. Develop As a Generalist

New in-house counsel may be surprised at the broad range of legal questions raised by internal clients. If not specializing in a particular practice area within a large legal department, in-house counsel are usually expected to be generalists. Counsel should consider the following strategies to develop and succeed as a generalist:

  • Candidly admit not knowing an answer on the spot.
  • Use good judgment and instinct to provide initial guidance.
  • Embrace new challenges.
  • Be deliberate about professional development.
  1. Be More Than the Lawyer

In addition to traditional legal responsibilities, in-house counsel often assume ancillary responsibilities that include areas such as corporate governance, compliance, human resources and risk management. Counsel should consider the following approaches to manage these roles:

  • Be an active business partner.
  • Be a team leader.
  • Develop business skills.
  • Understand financial concepts.
  • Acquire knowledge that adds value to the company.
  • Go above and beyond to complete a project.

For the full article complete with links to helpful ready-made in-house counsel related resources, visit the Practical Law Practice Note, “Practical Tips for New In-house Counsel”, today!

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