Welcome back to Inside Track. I'm Law.com in-house reporter Stephanie Forshee.

We've got some great stories this week. My colleague spoke to the Barclays UK general counsel about how she's gotten the legal department involved in a legal tech incubator. Then we've got a former federal prosecutor's tips from Panasonic's recent FCPA mess.

Think we'll see more female GCs stepping up to CEO roles? We have thoughts on that plus a look at the latest magazine features that we published this week (from GDPR to sex toy lawsuits, yep keep reading.)

If you have tips, story ideas or other feedback, email me at [email protected] or find me on Twitter: @InOtherNewsNow.

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What's Happening –

Building Something. Barclays UK general counsel Stephanie Pagni has opened up a legal tech incubator. Barclays teamed up with 13 law firms, PwC and the Law Society to “turbo charge the UK's law-tech sector,” Pagni told my colleague Anna Ward.

When Pagni took over the GC role in the UK in March 2017, she went to visit some of the 14 other “Eagle Labs” that Barclays has set up around the country. “I was so impressed that it inspired me and my team in legal to think, 'Well, couldn't we do something more in our field?'” she said.

The answer, apparently, is yes.

Getting Going. Barclays is inviting applicants to be part of the group of two to eight people who will “positively disrupt” the legal and/or reg tech worlds.

According to Pagni, the selected law firm partners will “provide guidance and support, attend some of the events, and sponsor some of the events. We also want them to send in lawyers to get exposure.”

Barclays' in-house attorneys also helped launch the incubator. They…

➤ ID'd potential partners.
➤ Advised on repurposing branches of Barclays sites.
➤ “Fit-out” those sites to become co-working places.

FCPA Mess. On Monday, Panasonic got hit with a $280 million penalty on both civil and criminal counts, after the company admitted to hiring third-party consultants in China who cut suspicious deals with foreign officials.

On top of the fine, Panasonic must now have a compliance monitor watching its efforts for the next two years.

My colleague Sue Reisinger spoke to several sources knowledgable about compliance, including Julie Myers Wood, a former federal prosecutor-turned-CEO. Wood referred to the case as “a roadmap for things that should be done to avoid a monitor or a significant fine such as Panasonic got.”

Here are a few of Wood's lessons learned:

➤ Pay attention to red flags from internal audit programs.

➤ Have a strong conflict of interest policy and train employees and consultants on it.

➤ Fully vet and train consultants and intermediaries.

Woman Power? A new study from Pew, released this week, indicated that compared to men, there are relatively few women who actually rise through the ranks to make it to the corner office. OK, most of us are aware of that by now. But one stat really stuck out to me…

When Pew discussed non-CEO female execs, it indicated that about one-fourth of the women in the highest ranks serve in the general counsel or chief legal officer role.

That got me thinking about whether we could see more female GC and CLOs become CEOs one day, as part of succession planning. In its announcement of the recent study, Pew pointed to another article from McKinsey that says, unfortunately, it's unlikely. But I thought I'd ask some GCs just in case:

➤ Kim Youngberg, general counsel of ScreenVision Media, has worked in the entertainment industry for years. She has played an active role in the business, but her expectation isn't that we'll see too many women jump from top lawyer to chief executive role.

➤ Youngberg said it's rare for GCs to become CEOs “because most of the time what we do is in the background and not noticed.” She compared the legal role to being a drummer or a goalie. “No one notices what you do unless there is a screwup,” Youngberg said. She noted that a head of sales, for example, can show increased sales numbers, “That's something concrete.”

➤ Chelsea Grayson, the former general counsel of American Apparel who also served in the CEO role there, agrees this likely isn't a trend with a lot of legs.

Grayson told me that boards “whose main function is CEO succession planning” value operational experience. She said “that seasoning is difficult for GCs and CLOs to come by in the ordinary course of their positions.”

➤ Her advice for legal chiefs interested in crossing over to a CEO role is to find opportunities to take on business functions or roles, with the board's permission. HR or health and safety-related functions “can be good places to start,” she noted.

Also, if you haven't already, check out the May edition of Corporate Counsel.

We've got a great cover story from Sue Reisinger about the GDPR-pocalypse that is upon us. The good news is if you've still got some unanswered questions, you're not alone. The other good news is that Sue's sources have some advice to help you survive.

Also in this month's mag is a feature I wrote about the lawyers who represent pleasure toy companies. Who knew you couldn't promote sex toys on Facebook or that it's technically still illegal to sell them in some states? The legal issues they're facing are…unique, I'll say.

You should take a read.

Question of the Week –

Do you have a pressing question you'd like answered? If so, send it my way.

Here's this week's question:
I'm a law firm lawyer and have lost out on in-house jobs to lawyers with in-house experience. How do I overcome this objection?

➤ Whether you're a litigator or a transaction lawyer, the lack of in-house experience can put you at a competitive disadvantage when applying for an in-house position. Historically, employers have waxed and waned on their level of flexibility regarding this requirement and the pendulum has swung back and forth a few times over the course of 15-plus years.

➤ Today, the level of consideration for law firm candidates is mixed. But with all things being equal, an employer will hire the candidate with in-house experience. Why? Because law firm and corporate environments are two completely different worlds … maybe even different planets. And the transition from law firm to in-house can be very challenging. Some lawyers never acclimate while others make the transition over a longer period of time. Neither of which is ideal for an employer.

➤Candidates who possess in-house experience have already been part of a corporate culture and know how its lawyers operate within it. They have handled the types of legal matters and corporate issues that are part of a corporate environment and have had to work with all the moving parts of a company. As a result, these lawyers don't have to master a steep learning curve and ramp up tends to be much shorter. They are, in other words: A safer bet.

➤ Law firm lawyers, on the other hand, work on a variety of matters for different clients. They are hyper-aware of billable hours and keeping track of their time, which is a structure that dominates their world. There are no internal clients and visibility is limited into the inner workings of the company.

➤ Consequently, a law firm lawyer isn't “under the skin” of their company client. But rather on the outside, looking in.

➤ While more differences exist, these are the basics. And it is clear to see why a corporate employer might favor a candidate with in-house experience.

So how does a law firm lawyer overcome the lack of in-house experience?

Below are a few areas that will help persuade an employer in your next interview:

Diversity. Depth. Deals. Use the diversity of your clients and deals/matters as a competitive advantage. You're in the trenches and working on a plethora of matters for many clients so you are exposed to more variety, different situations, diverse questions—and perhaps managing multiple matters and multiple teams. It is experience you bring to an in-house role that will serve as a huge value-add for an employer. You've seen a lot and your experience is deep. This is the strongest card you have to play on the substantive side so play it with authority.

Business Acumen. This is a crucial skill to have as an in-house lawyer and a quality that employers prioritize. Emphasize that you are a business-oriented lawyer. Provide some examples, and communicate what it means to you and its influence on how you practice. Also articulate the context in which you would use your business acumen in a corporate setting. Demonstrate your knowledge of the company and its industry.

You Get It. Many employers don't believe that a law firm lawyer has the slightest idea what it's like to work in a company—hence their apprehension. Let them know that you do: The practice, the values, the collaboration, the service, the culture, the business etc. It can be part of the messaging as to why you want to go in-house or as part of addressing the objection directly.

Culture. Culture and “fit” are hugely important in a company. So, articulate that you understand the make-up of a corporate culture and discuss how you would approach your role as a corporate citizen and colleague. Articulate the importance of teamwork, responsiveness and reliability, intellectual curiosity and flexibility. In addition, life in a company can be more fast-paced. Demonstrate how you can move on a dime and pivot when needed.

Ace The Basics. Do your homework. Be prepared. Be flexible. Show up on time. Dress appropriately. Firm handshake. Big Smile. Lots of enthusiasm. Be nice to everyone. Message of thanks. If you want to win, you have the ace the basics in your interview process. This is what will maximize your best first impression and give you a running start at landing the job—in-house experience or not. Sounds simple, huh? You'd be surprised at how many people fail in these areas and compromise their candidacies. So if you want to out-compete your in-house competitor, start by buttoning up.

➤ As you continue to pursue in-house opportunities, you'll encounter different levels of openness towards law firm candidates. If any of the above suggestions resonate with you, use them to mitigate objections and demonstrate why you will make a great in-house attorney. It may take a few tries. But if you persist, you are bound to encounter an employer who likes what you have to offer and will be willing to take a chance.

— Julie Brush, founder/author of The Lawyer Whisperer and co-founder of Solutus Legal Search.

Don't Miss –

Wednesday, May 9. Global Leaders in Law will hold a session on “Artificial Intelligence” in Zurich. GLL is an invitation-only membership group, offering GCs a global platform for in-person collaboration to exchange ideas and receive advice and guidance from peers. For more information, contact Meena Heath at [email protected].

Monday-Tuesday, May 21-22. The Marketplace Risk Management Conferencewill be held in San Francisco. More than 300 tech companies will be represented, with the GCs of Airbnb, Lyft, Instacart and Sittercity slated to attend. The conference focuses on risk management for web and mobile marketplaces.

Tuesday-Wednesday, May 22-23. SuperConference 2018, hosted by Corporate Counsel, will take place in Chicago. The conference delivers the key insights and practical solutions today's general counsel need to manage and better leverage C-suite relationships, prevent and mitigate the risks of a cyber attack, successfully overcome a litigation crisis, do more with fewer resources and much more. Speakers include in-house lawyers from Aon, GE, Groupon, Kayak, Discover, Microsoft and Yum! Brands.

Thursday, June 14. The American Lawyer and LegalWeek will present the Transatlantic General Counsel Summit 2018 in London. The summit provides a platform for some of the most elite general counsel in the U.K., Europe and U.S. to identify and determine the meaningful difference the legal function can make when contributing to a company's strategy.

On the Move –

Good Deeds. It seems hard to escape Mark Zuckerberg or his lawyers these days. Erika Rottenberg signed on this past week as the legal chief for the Chan Zuckerberg Initiative, a philanthropic organization founded by Zuck and his wife Priscilla Chan. Since leaving LinkedIn, where she acted as its first-ever GC, Rottenberg has spent her time advising and working on the board at Twilio and Wix.com.

Follow the Leader. Freddie Mac announced that its GC William McDavid will be retiring at the end of the year. The mortgage giant is bringing on Ricardo Anzaldua as a senior legal advisor to the CEO. Anzaldua is expected to succeed McDavid, after a transition period.

Show 'Em That You Care. Nashville-based health care finance company CarePayment announced that Brian McCarthy will be its SVP and general counsel. He most recently worked for Occusystems Services, which provides health care to employees injured on the job.