Kara Sears
The role of a General Counsel (GC) is multifaceted and pivotal, encompassing a wide range of legal and non-legal responsibilities crucial to a business's functioning and success. A GC is typically a company's chief legal officer and principal attorney, providing legal advice and guidance, managing legal risks, and supervising legal operations. They are the bridge between a firm's strategic management initiatives and its risk mitigation efforts, ensuring compliance with various regulations. The role of GC requires a broad skill set, including sound judgment, ethics, integrity, and business and financial acumen. While the role can be demanding and time-consuming, it offers the opportunity to make a significant impact on the organization's success. Law firms may have in-house or outside general counsel, with in-house counsel typically being a partner or employee of the firm and outside counsel being external attorneys providing services on a more flexible basis. This decision depends on various factors, including the size and complexity of the firm, its legal needs, and the efficiency of utilizing firm resources.
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What You'll Learn
The role of a general counsel
The GC's role can touch multiple areas of the company, from finance and marketing to sales and HR. They are responsible for handling legal issues, ensuring compliance, and providing advice and guidance to the company. This includes contract disputes, intellectual property issues, regulatory compliance, employment matters, and litigation management. The GC also plays a critical role in managing litigation efficiently and cost-effectively, working with external counsel when needed.
In a small organization, the GC may lead the legal team and provide advice to other departments. In larger organizations, the GC may have a more supervisory and leadership role, overseeing the legal department and reporting to the CEO and board. The GC is also responsible for staying on top of laws and regulations that might affect the organization and industry, which includes attending board meetings and committee meetings.
To become a GC, one must possess a range of legal and non-legal skills. Legal skills include knowledge of multiple areas of the law, such as litigation, contracts, intellectual property, and corporate governance. Non-legal skills, or soft skills, include sound judgment, ethics, integrity, business acumen, and financial acumen. The ability to convey complex legal issues in a way that non-lawyers can understand is also crucial.
In terms of qualifications, GCs are typically qualified lawyers who have passed the state bar exam and may have additional specialty certifications related to the company's business field. They may also have business qualifications, such as an MBA, to sharpen their business instincts and integrate business and strategy into their legal roles.
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Differences between in-house and outside general counsel
In-house counsel, or general counsel, are attorneys employed directly by a company, either full-time or part-time, to perform all their legal work. They are responsible for all the compliance and legal aspects of a business, including compliance, contracts, litigation strategy, intellectual property issues, and regulatory guidance. In-house counsel should be embedded in all other business divisions, knowing their goals and activities to provide proactive, helpful legal advice. They are also involved in strategic decision-making and are permanent members of the organisation's leadership team.
Outside general counsel, on the other hand, refers to external lawyers or law firms contracted to advise or represent an organisation on specific matters or projects. They are often engaged for their specialised expertise, such as complex litigation, mergers and acquisitions, or to supplement capacity for large, time-intensive projects. Outside counsel can provide fresh perspectives and expertise that in-house counsel may lack. They work for a variety of clients and can offer a wide range of legal services, depending on the needs of the company.
While in-house counsel is cost-effective and has deep institutional knowledge, outside counsel brings a breadth of experience and specialised knowledge, albeit at a higher price point. In-house counsel may not have the expertise to handle all types of legal business decisions, particularly those that require a high level of specialisation. In such cases, outside counsel can be engaged to provide the necessary expertise.
The choice between in-house and outside counsel depends on various factors, including areas of specialised knowledge, budget, and the nature and complexity of the legal matter at hand. It is important for organisations to understand the strengths and advantages of each option to make a decision that benefits them legally, strategically, and financially.
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Skills required to be a general counsel
Being a general counsel is a tough job that involves long hours and a lot of pressure. You will need to make critical decisions with limited time and information. To succeed in this role, you must possess a broad range of skills, including legal expertise, soft skills, and business acumen.
Firstly, a strong foundation in law is essential. General counsels should have experience with legal documents, legislature, mitigation, procurement, compliance, drafting, and litigating. They should also be familiar with various legal issues, such as contracts, intellectual property, and corporate governance. While you don't need to be an expert in all areas, having a broad understanding and taking advantage of opportunities to expand your legal knowledge will serve you well in this role.
Secondly, soft skills are critical. You must demonstrate sound judgment, ethics, and integrity when making decisions, especially in grey areas of right and wrong. The ability to communicate complex legal issues in a simple, understandable manner to non-lawyers is a valuable skill. This includes both verbal and written communication, and how you present yourself, as everything about you will be considered.
Lastly, a basic understanding of business and financial matters is important. General counsels should know how to interpret balance sheets, profit and loss statements, and cash flow. They should also be able to use legal strategies to advance the company's business interests. This includes understanding risk management and strategic decision-making to protect the company's legal and financial standing.
Other notable skills and qualifications that can set you apart include analysis, detail orientation, human resources experience, legal research, and contract management.
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Challenges of being a general counsel
Being a general counsel is a challenging role that demands a broad skill set and the ability to make critical decisions under pressure. Here are some of the key challenges faced by those in this position:
Long Hours and High Pressure
The role of general counsel is demanding and often requires long hours, including evenings, weekends, and time during holidays and vacations. The job comes with significant pressure as decisions must often be made quickly, based on limited facts, and with little time for deliberation.
Broad Skill Set
General counsel must possess a wide range of skills and knowledge. They need to be adept at dealing with various legal issues, from litigation to contracts, intellectual property, and corporate governance. They must also have a solid understanding of business and financial matters, including balance sheets, profit and loss statements, and cash flow. Soft skills, such as communication, ethics, and integrity, are also crucial, as general counsel must be able to convey complex legal concepts to non-lawyers and build trust with company executives.
Regulatory and Compliance Complexity
With the ever-changing landscape of regulations and compliance standards, particularly in a globalized business environment, general counsel must stay up-to-date with the latest rules and be able to navigate complex, multi-jurisdictional legal matters. This includes understanding the political, cultural, and business environment in different countries and jurisdictions, which can be dynamic and challenging to grasp fully.
Strategic Business Involvement
The role of the general counsel is expanding beyond purely legal matters. They are increasingly expected to be proactive players in strategic business decisions, including risk management, finance, marketing, human resources, and production. This means that general counsel must understand the business ramifications of their legal advice and be able to provide creative, yet legal, solutions to achieve business goals.
Fostering Relationships
Building and maintaining strong relationships with external advisors, such as legal panels and firms, is essential for saving time and money. General counsel must also ensure that their value is recognized by key stakeholders, including directors, the chairman, the CEO, and the CFO, to have true influence in the organization.
Work-Life Balance
With the demands of the role, finding a healthy work-life balance can be challenging. General counsel often needs to be available 24/7, which can make it difficult to disconnect and fully dedicate time to personal and family matters.
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Benefits of hiring an outside general counsel
Hiring an outside general counsel can be beneficial to businesses in several ways. Firstly, it can provide cost savings. Engaging an outside general counsel can be more cost-effective than hiring a full-time in-house attorney, as businesses only pay for the specific services performed and do not incur the high salary and benefit costs associated with a dedicated attorney. Even if a business's legal needs are substantial, outside general counsel can offer a single point of contact at a law firm who can coordinate with other attorneys within the firm specialising in the required legal areas. This streamlines the management of multiple lawyers and ensures focus on the specific legal issues, further controlling legal costs.
Outside general counsel also provides efficiencies by saving valuable time and resources. Businesses can benefit from the expertise of experienced attorneys or law firms that routinely encounter and resolve the types of legal issues a company may face. This leaves the company's management team free to focus on core business growth activities without being distracted by legal matters, reducing the risk of missed deadlines and costly mistakes.
Additionally, outside general counsel can offer a broader perspective. They can provide a fresh and objective viewpoint, unencumbered by internal company politics or history, which can be valuable in navigating complex legal and business matters. Outside counsel can also serve as a trusted advisor and relationship manager, fostering a long-term partnership with the client organisation.
Finally, outside general counsel can be engaged on a flexible basis, scaling their services up or down as the company's legal needs evolve. This adaptability ensures that businesses only pay for the level of service they require at any given time, making it a more financially viable option than hiring a full-time in-house counsel.
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Frequently asked questions
A general counsel (GC) is the principal attorney and legal advisor to the board of directors of a company. They are the link between a company's C-suite and its ground operations, and they oversee the legal affairs of the company. They manage and oversee lawsuits, identify and mitigate legal risks, ensure compliance with corporate governance best practices, and manage external counsel.
In addition to legal knowledge, a general counsel needs to have a wide range of soft skills. These include sound judgment, ethics, integrity, business and financial acumen, and the ability to contextualize complex legal issues for non-lawyers.
Yes, it is possible to be a general counsel and maintain your law firm, but it requires a shift in mindset and skillset. As a general counsel, you would need to go beyond legal knowledge to provide business-specific advice and become a strategic partner to the company. This involves understanding the broader corporate context and integrating legal rules into it. Additionally, as a general counsel, you would need to be comfortable in a wide variety of settings and manage a diverse range of responsibilities.
