May 2, 2017

It is good to have at least general idea of the answer to the question of where the added value of the legal department lies, otherwise you might become a very expensive administrator whose contribution to a company success is questionable. 

The rapid transformation (one could almost say the revolution) of the world of legal services is a fact and has been taking place for some time now. In fact, I believe it is now gaining its full momentum. This transformation affects both law firms and in-house legal departments. It started several years ago with cost-cutting, as clients expected more and more for less and less: in-house legal departments from external law firms, and internal clients from in-house lawyers. More changes followed. 

The legal department is one of the support functions in an organization which is, or at least should be, constantly evolving together with the organization it supports. It cannot be too static or too inconsistent in its approach and way of handling the organization’s legal matters. 

The method of providing legal services has changed a great deal over recent decades. This is true both globally and in CEE, which has been integrating rapidly into the global economy. In this process, local subsidiaries in the region have absorbed key trends and practices from their Western headquarters, business processes have upgraded and developed, and business itself has become more cross-bordered and technologically advanced.

Years ago, when a group of in-house lawyers entered the elevator of a bank, someone would mock, “Wow, what a bunch of handbrakes!” While this did not personally happen to me, I am well aware that internal legal counsels are often referred to as “problem factories” or “speedbumps” – the couriers of bad news, best to be avoided. I must admit, this scorn was not without reason. But, should this necessarily still be the case? In my view, not any longer.

In the 18 plus years I have been an in-house counsel I have had the opportunity to observe the evolution of that role. These days, in-house legal counsel do more than simply review contracts and provide legal counseling. We are no longer transactional clerks who merely approve what has already been done. General Counsels have evolved from being purely legal advisors to being strategic advisors. It is not enough now merely to provide guidance and business solutions on specific issues or resolve disputes that may arise. We must be forward looking business partners, seated at the table at which strategic decisions are made. 

The phenomenon of globalization has impacted almost every field of personal and business life of this generation – and the position of Head of Legal is no exception. In order to understand the evolution of this role compare what football or basketball looked like 30 years ago to what they look like now: Almost like different games.