The Generalist Counsel

1. The General Counsel role has evolved into a strategic business partner

"A General Counsel needs to be a business person first and a lawyer second—not a lawyer that understands the business, but a business person that happens to be a lawyer."

Historical perspective: The General Counsel role has transformed from a relatively minor management figure to a key strategic partner. In the mid-20th century, General Counsel were often seen as "inferior" lawyers handling routine matters. However, since the 1970s, increased regulatory complexities, merger activities, and litigation have elevated the role's importance.

Strategic involvement: Today's General Counsel are expected to:

• Participate in high-level business decisions
• Provide strategic input beyond legal advice
• Understand and contribute to the company's overall business objectives
• Balance legal risks with business opportunities

Value creation: Successful General Counsel now drive business innovations, shape corporate strategy, and add value beyond traditional legal services. This shift has led to increased compensation, status, and influence within organizations.

2. Transitioning from law firm to in-house presents unique challenges and opportunities

"Everything I learned about being a General Counsel, I learned in school."

Mindset shift: Moving from a law firm to an in-house role requires a significant mental adjustment:

• Focus shifts from billable hours to business outcomes
• Need to balance legal perfectionism with practical business solutions
• Emphasis on proactive problem-solving rather than reactive legal advice

Skill development: In-house lawyers must develop new competencies:

• Understanding the business at a deep level
• Communicating effectively with non-legal colleagues
• Managing internal teams and external counsel
• Balancing multiple stakeholder interests

Career advantages: Despite challenges, in-house roles offer unique benefits:

• Broader exposure to business operations
• Opportunity to shape corporate strategy
• Potential for greater work-life balance (though not guaranteed)
• Increased job satisfaction from seeing direct business impact

3. Successful General Counsel possess a blend of legal expertise and business acumen

"I realized that something dramatic was happening within the corporate law department. That is where innovation and leadership of the legal profession was going on."

Legal foundation: Strong legal skills remain crucial, including:

• Deep understanding of relevant laws and regulations
• Ability to analyze complex legal issues
• Experience in managing litigation and transactions

Business knowledge: Successful General Counsel also develop:

• Understanding of company financials and business models
• Knowledge of industry trends and competitive landscape
• Ability to translate legal concepts into business terms

Soft skills: Key attributes for success include:

• Strong judgment and decision-making abilities
• Excellent communication and relationship-building skills
• Leadership and team management capabilities
• Adaptability and willingness to learn continuously

4. Building and leading an effective legal team is crucial for General Counsel success

"I am not the star of any show. The key to building an effective team is that you have to know your own limitations and surround yourself with people who possess strengths that you don't have."

Team composition: General Counsel must strategically build their teams:

• Hire for diverse skill sets and experiences
• Balance specialists and generalists
• Consider cultural fit within the organization

Leadership approach: Effective General Counsel leaders:

• Set clear vision and goals for the legal department
• Foster a culture of collaboration and continuous improvement
• Provide opportunities for professional development
• Align team objectives with overall business strategy

Resource management: Successful General Counsel optimize their resources by:

• Balancing in-house capabilities with external counsel
• Implementing efficient processes and technologies
• Managing budgets effectively
• Demonstrating ROI to the business

5. General Counsel must navigate complex ethical and legal responsibilities

"There are so many great things about this job, but the risks involved are tremendous. I'm not sure people understand how much these jobs have changed."

Ethical considerations: General Counsel face unique challenges:

• Balancing roles as both business partner and legal guardian
• Maintaining independence while fostering close relationships
• Upholding professional ethics in high-pressure situations

Legal risks: The position carries significant personal and professional risks:

• Potential liability for corporate misconduct
• Scrutiny from regulators and shareholders
• Responsibility for company-wide compliance

Conflict management: General Counsel must navigate:

• Disagreements between legal and business objectives
• Potential conflicts between company and individual interests
• Pressure to compromise ethical standards for business gains

6. The modern General Counsel wears many hats beyond traditional legal roles

"The General Counsel's position in the top levels of the corporation's management structure gives the General Counsel a broad impact on strategic business planning."

Expanded responsibilities: Today's General Counsel often oversee:

• Corporate governance and compliance
• Risk management
• Government relations
• Corporate communications
• Human resources

Technology integration: General Counsel increasingly manage:

• E-discovery and information governance
• Legal technology implementation
• Cybersecurity and data privacy

Business operations: Many General Counsel take on additional roles such as:

• Chief Operating Officer
• Chief Strategy Officer
• Head of corporate development

7. General Counsel are increasingly positioned for C-suite and CEO roles

"[In response to your question asking whether General Counsel are uniquely qualified to be Chief Executive Officers], there are as many reasons to choose a General Counsel to be CEO as not."

Transferable skills: General Counsel develop capabilities valuable for top leadership:

• Strategic thinking and decision-making
• Risk assessment and management
• Stakeholder communication and relationship building
• Crisis management

Industry trends: Certain sectors are more likely to see General Counsel ascend to CEO:

• Highly regulated industries (e.g., pharmaceuticals, finance)
• Companies facing significant legal or regulatory challenges

Success factors: General Counsel aspiring to CEO roles should:

• Gain broad operational experience
• Develop strong business acumen
• Build a track record of strategic contributions
• Cultivate relationships across the organization

8. Continuous improvement and adaptation are essential in the changing legal landscape

"It used to be that at budget time you would come in and say, 'I need another lawyer.' Then it became—'Here is your budget, hire all the lawyers you want … within this budget.' Today it is—'You get money based on the outcomes you plan to generate and your ability to show that the outcomes are worth the investment.'"

Evolving expectations: General Counsel face increasing pressure to:

• Demonstrate value and ROI to the business
• Improve efficiency and reduce costs
• Adopt new technologies and processes

Market forces: The legal services landscape is changing due to:

• Client demands for alternative fee arrangements
• Competition from non-traditional legal service providers
• Technological disruption in legal practice

Adaptation strategies: Successful General Counsel:

• Embrace data-driven decision making
• Implement project management and process improvement techniques
• Foster a culture of innovation within their teams
• Stay informed about industry trends and best practices

Last updated: August 12, 2024