I spent 20 years in Michelin's legal department, the last four as vice president, general counsel and secretary. The business was growing, complex and challenging. Opportunities and risk were everywhere. And the lawyers were asked to cover the broad landscape quickly and efficiently.

Here are five key lessons I learned:

  1. Willie Sutton Rule.

Willie Sutton was a famous bank robber. When asked why he robbed banks, he said “because that is where the money is.” Effective lawyers in a complex environment cannot focus on everything. Effort and risks need to be prioritized “where the money is.” Or in other words, the 80/20 rule.

  1. Walk upstream.

The parable of the river: Babies are floating down the river and several men jump in to rescue. After a few minutes one man gets out and starts to walk upstream. When one of the men in the river asked why, he said, “You save as many babies as you can, I am going to walk upstream and find out who is throwing babies in the water.” The lesson here is that effective lawyers need to find the root cause of the problem and not simply treat the symptom. Walk upstream, always.

  1. Targeted, practical solutions—not perfect ones.

I attended a personal privacy seminar several years ago. The presenter asked those in the audience who worked for airlines, banks, retailers, etc. to raise their hands. She said they needed to make an “A.” Then she asked for those who worked for companies that did little business with individual consumers to raise their hands. She said that group only needed to make a “C.” Think about it. Most lawyers propose the perfect solution (and often most complex/expensive) every time. For me, the best ones know when a company needs to make an “A” and when a “C” is OK.

  1. Risk-taking.

Companies need to take reasonable risk. Lawyers are terrible here. The best lawyers help guide and steer reasonable risk-taking. Business demands it. Remember the biggest risk is not taking any risk.

  1. Clear communication.

Here is a test. Take this elementary example (from the 2001 ACCA article on things to know as general counsel) and reflect on a more effective way to communicate this statement.

“If it rains less than 6 inches on Sunday, then party A will pay $3 per share. If, however, it rains at least 6 inches but less than 12 inches on Sunday, then party A will pay $4 per share.”

The better way:

Amount of Rain on Sunday ¦ Payment Due

Less than 6 inches ¦ $3 share

6-12 inches ¦ $4 share

Pictures work. Anything you can do to simplify communication with business executives will pay dividends. And it takes some time. President Woodrow Wilson said, “If I am to speak 10 minutes, I need a week for preparation; if an hour, I am ready now.”

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Takeaway

General counsels report to the CEO. And because the CEO usually has no legal training, the general counsel is evaluated not on technical legal skills, but rather on leadership, influence, problem-solving, risk-taking appetite and communication. This is what a company wants from the lawyers.

Daniel S. Sanders Jr. is a partner at Nelson Mullins Riley & Scarborough.