All of us agree that it is vital for a successful organisation to build a synergetic relationship between the organisation’s legal function and the business teams, especially sales and leadership. This relationship needs to be tended with care and finesse to derive the maximum value out of it.This article is intended to act as a set of principles to act as a guide when an inhouse legal counsel (Counsel) sets out to maintain an effective relationship with the company’s business functions.
With the fast evolution of the traditional lawyer’s role, in the role and expectations have changed to a great deal. Traditionally, lawyers were involved only when the company was in a dire need. Now most sizeable companies maintain their own team of in-house counsels. While the basic tenets of legal advice remain the same, the lawyers have to understand that their perception in the eyes of their business colleagues, vis-à-vis the traditional counsel, has undergone a sea change. From being external law-commentators they are increasingly seen as business –enablers.
As things stand in most companies today, the legal team gets involved with a particular business opportunity and the contracting, right from the budding stage. This phenomenon gives the Counsel a tremendous opportunity to start a professional relationship with the rest of the team but at the same time creates a mountain of expectations from them. The fine art of setting those expectations right in the correct priority and then coming up to those very expectations is easier said than done. It is hoped that a few key points as discussed below will be helpful to achieve this target.
In-house counsels work in a variety of industries. The sheer diversity of the work available today is exciting but it is a daunting task to keep up with the core business of the company. The Counsel should use all resources available to him and train himself with relevant business aspects. The target is to be well versed withthe common terminologies and in control of things even when the business is being carried out in the most technical of terms. In case of doubt, the clarifications from relevant teams should be sought immediately.
The importance of having an up to date knowledge about the latest trends, the relative strengths and problem areas of the employer’s business can go a long way in giving the counsel head- start to create the right atmosphere of informative dialogue with the company internally. The Counsels these days have teams situated globally. Maintaining good relations internally and sharing latest trends and best practices will give the Counsels an insight into the latest scenarios in various fields of law and will make them more confident and knowledgeable on the matters at hand.
Broadly speaking, there are two kinds of approach a business might take with respect to legal advice. The first can be termed as an easy, tactical approach aimed chiefly at getting an immediate solution to the issue at hand. The second is a more strategic way of looking at things wherein legal adviser is looked at as a subject matter expert and his advice is evaluated with a more serious consideration. The Counsel’s task is to delicately expound the difference between the two approaches.
Once explained professionally, the business is likely to note that though a short term approach might win them a particular deal, for the long term benefit of the organisation, a long term approach is certainly better. Furthermore, if the reception from the business is far from ideal, perseverance and a different way to explain things will hold the counsel in good stead. A certain kind of finesse in expression is desirable from the Counsel.
More often than not, the Counsel wields a lot of power as far as approval of a particular engagement is concerned. There are two aspects that need attention here. The first part is to keep acting as a subject matter expert without getting irritated about the lack of legal knowledge of other stakeholders. The second aspect is to underplay the decision making power and focus on the legal and contractual facts taking precedence on individual decisions. This will set the correct precedence in the company’s decision making process.
The business environment these days is very competitive and the Counsel should be aware of the fact that risk is inbuilt in any entrepreneurial venture. While the Counsel’s task is to de-risk the complete contracting process, it is only in an ideal world where such an exercise would be possible. While maintaining the stance ofhighlighting the contractual and legal risks and their subsequent mitigation plans, it should be borne in mind that the business team could also have their justifications of taking a particular risk. If this fact is understood, the rest of the trek becomes easy.
In an organisation, each function has a pre-defined role to play. Harmony exists when each function does its task with efficiency and when nobody digresses from their path. There might be a perception amongst the revenue earning teams since the legal function is merely a cost-centre. Rather than detesting this notion, the Counsels need to prove their worth by highlighting the possible losses and risks in absence of a sound legal advice.
To sum it up, the mantra for achieving a perfectly harmonious business relationship is when a Counsel strives to retain the image of being a “TRUSTED ADVISER” to the business. The basic old manners are useful in diffusing a tense situation, wherein despite not being in perfect agreement, each professional accords the same amount of respect to others as they would like to have for themselves. We should not let these tenets get diluted in our fast-moving world of business. Only then we will achieve the target of being a perfect business enabler.
www.grandmasters.in | 8 Years & Counting
www.rcls.in | 8 Years & Counting
www.itlegalsummit.com | 8 Years & Counting
www.bfls.in | 8 Years & Counting
www.maels.in | 8 Years & Counting
www.plcs.co.in | 8 Years & Counting
Copyright © 2020 Lex Witness - India's 1st Magazine on Legal & Corporate Affairs Rights of Admission Reserved
