New Year, New Legal Department: 5 Points of Focus for In-House Lawyers in 2018
Whether it's shutting off ever-present mobile devices or taking a close look at company culture, there's plenty for general counsel and their colleagues to set their sights on in 2018.
December 28, 2017 at 04:18 PM
6 minute read
As 2017 comes to a close, legal departments are planning for the year ahead. It's been 365 days of litigation battles, regulatory updates, rapid technological growth and enough scandals to make any general counsel nervous. In the new year, legal departments will have to adapt to all the change that continues to come their way. Corporate Counsel spoke to a group of experts to get five recommendations for in-house counsel looking to prepare for all that 2018 is sure to bring:
1. Post-Weinstein, Look at Company Culture
The last few months of 2017 saw a slew of sexual harassment and assault allegations shake up companies around the world. As the initial shock of #MeToo turns into a widespread demand for change, in-house teams should be at the forefront of making a difference. And there's a number of ways that could (and should) happen in the new year.
A crucial change needs to happen in culture for a lot of companies, and the in-house legal team can lead the way. Legal departments should analyze sexual harassment and other anti-discrimination trainings for their effectiveness, experts said.
But in-house lawyers also need to know how to handle a harassment claim if one does arise, as it's easier to manage a case internally than face a lawsuit or risk the development of a toxic work culture. That means victims of harassment and assault need to feel their allegations are being fully investigated and that they won't be penalized for speaking out, experts told Corporate Counsel. They also need to feel their voices are being heard by the legal department, part of the “listen up culture” that's crucial, according to Ed Petry, the vice president of the global advisory services team at NAVEX, which assesses companies' ethics and compliance programs.
“People in those situations are scared enough,” Petry said. “Demystify the process with training and awareness. Make sure you've got an organization that follows up, that has investigation protocols in place with a plan and consistent discipline.”
2. Expect to Merge and Acquire Under Trump's Tax Plan
By now, in-house teams have hopefully finished up reading the nearly 500-page new tax law and started to figure out how it affects their company. For some the law could mean restructuring or meeting with C-suite executives to discuss changes in pay.
But for a number of industries, the tax plan could also rev up mergers and acquisitions. If money currently held overseas is brought back to the United States to take advantage of a lower corporate tax rate, this may lead to domestic expansion, according to experts. For American companies already looking to expand, the bill could boost incentives to do so domestically rather than globally—whether that's opening a new office or acquiring a competitor in another state.
“You'll see a lot more M&A, especially from tech companies that are doing well, because there's a lot of money coming in,” said Susan Hackett, CEO of Legal Executive Leadership, a law practice management consultancy. “People will have a lot of cash and they'll want to buy.”
3. Boost Efforts to Attract and Retain Top Talent
It's an issue that's carrying over from 2017, and one that legal departments will have to think about throughout 2018. Jamy Sullivan, executive director of Robert Half Legal, said her firm's 2018 Legal Salary Guide found that a lot of in-house attorneys are worried they'll lose staff in the coming year.
But there are solutions. Outside of compensation and bonuses, there are a lot of ways to attract and keep top talent in 2018, according to Sullivan. Legal staff are drawn by perks such as telecommuting and flexible schedules—signs work life balance is increasingly important. She explained there's an interest in challenging work, in which team members feel their input matters. Opportunities for professional growth and development are also key, she said, alongside a growing demand for tuition reimbursement.
“They [candidates] are looking for that extra perk and benefit,” Sullivan said. “It's another tool for hiring.”
4. Use Tech Tools to Cut Costs and Spot Trouble Early
One trend from 2017 is carrying over to the new year—legal departments are expected to do more with less. With increasingly scalable and affordable technologies, it's easier than ever for in-house legal teams of all sizes to boost efficiency on a lower budget. But that's only if in-house counsel are willing to stray from the old-fashioned ways of working to try the latest tech, experts told Corporate Counsel.
“Related is the willingness to embrace and understand when change needs to be made, to be open to embracing new ways of delivering legal services to your in-house clients,” said Andrea Bricca, a partner at legal recruiting firm Major, Lindsey & Africa. “It's not business as usual. It boils down to being seen as adding value to the organization.”
Technology can help legal departments shift from cost centers into money makers, she added, noting that artificial intelligence and predictive technologies can allow lawyers to spot legal troubles before they arrive, saving their companies time and money.
5. But Know When to Turn Off the Tech
While it's crucial for in-house teams to adopt and adapt growing technologies, it's also important for these attorneys to know when to shut off the cellphone or laptop. New tools boost efficiency, experts said, but they could actually hurt departments long-term if constant emails are causing distractions throughout the day.
It's important for in-house lawyers to find the perfect balance. During meetings, focus on what's being said versus scrolling through messages. Hackett said it's important to know when to speak face to face about an important issue, rather than sending an email.
She's seen some in-house leaders push for a tech detox, to keep counsel from feeling constantly overwhelmed and allowing them to focus on the task at hand, rather than distractions (even business related ones) online. She's seen some GCs block off certain times of the day to read and respond to emails. The rest of the day, they're focused on other issues.
“It's great we're looking at this tech, but there's backlash against this constant focus on this [device] you have on all the time,” Hackett said. “It destroys the ability to communicate with people well and focus in meetings. I'm starting to see people with their email off.”
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