How DHL's GC Mark Smolik Became More Than Just a Lawyer, But a Business Partner, Too
Many general counsel aspire to play bigger roles in the business. Here's how one GC pulled it off.
April 27, 2018 at 02:21 PM
4 minute read
Mark Smolik's title at DHL Supply Chain Americas is general counsel and chief compliance officer. But his title doesn't really say it all. In reality, Smolik's role at the Ohio-based company extends far beyond the legal department.
During over nine years at DHL, Smolik says he's grown the GC post from one focused solely on law to one that also involves being a trusted business partner. It's not unusual for him to be on a business call to provide non-legal input. That's partly because Smolik says business is “in his DNA”—he started his first company when he was 16 years old—but it also came about with persistence and strategic thinking.
“Sometimes you have to go slow to go fast. For me what that has meant is building my own internal reputation in the company,” said Smolik, who will speaking about legal and business at Corporate Counsel's 2018 SuperConference in Chicago next month.
He's built his reputation on the business side by speaking up when he has a question and not being afraid to suggest new approaches or strategies. In his first weeks at DHL, Smolik was already asking questions in meetings about business-related aspects of the company.
“People looked at me like, 'Gosh, you're kind of a new guy, but you're the lawyer. I didn't expect you to question it,'” he said. “But it set the tone of, if there's a question I feel has value, I'll ask it.”
But according to Smolik, it's not enough to just talk business—general counsel who want a say in finances and budget need to walk the walk. That means running the legal department on a budget while producing results.
In 2009, he sat down with DHL's chief financial officer and asked how many sales it took to cover legal's spending, to get a better idea of what was at stake and the wider impact of his department's decisions. The amount of money being spent on outside counsel left him “shocked.” So he decided to help the business, and make a change in legal spend.
“Find a way to get to the heart of your business,” he said. “Understand what their challenges are and make sure you're very fiscally conservative with spending their money.”
Nine years after that meeting, he's done that by changing where and how the company's legal work is handled. When Smolik joined DHL, the legal department had seven members. Now, Smolik said his team's grown to almost 70. Commodity work, real estate work, leasing work and employment matters that had been outsourced moved in-house, and the savings followed.
Smolik noted that for outside counsel, he also staffs differently than legal did in early 2009. All of DHL's customer contracts are handled by trained nonlawyers.
While DHL has downsized it's outside spend, the department still relies on firms occasionally. In 2009, Smolik instituted a convergence firm strategy alongside the other changes in legal, cutting the number of firms from 350 to 19 core ones. And his team's developed metrics to ensure that the quality of work with outside counsel remains high.
Compensation for outside lawyers is tied to performance, and Smolik has face-to-face meetings to provide feedback.
“For the past eight years we have been evaluating the performance of our outside counsel against key performance indicators, making sure we have high performing firms with high spend. So we hold these firms accountable,” he said.
Smolik says these various strategies to cut legal department spend have proved effective, both at giving the legal team more credibility and in giving them more clout with the business side. And these gains, in turn, have helped make Smolik much more than just a top in-house lawyer.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All'Utterly Bewildering': GCs Struggle to Grasp Scattershot Nature of Law Firm Rate Hikes
Am Law 50's Runaway Rates Put Onus on Legal Departments to Stiffen Resistance
4 minute readTrending Stories
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250