General Counsel May Not Be Reaching Their Executive Potential
"Unfortunately, only 1 in 5 GC meet this standard of effectiveness," Abbott Martin, vice president for research in the Gartner Legal and Compliance practice, said. "This is concerning in an environment where many are looking to the GC for leadership."
May 27, 2020 at 04:55 PM
3 minute read
The general counsel dream of leaving Big Law to take a business leadership role in-house may turn out to be elusive.
A new GC poll from the research and advisory firm Gartner Inc. shows reality coming up short.
When Gartner asked them whether their ideal role was that of a corporate executive, nearly half of all GCs—46%—said yes. But when asked if they were able to carry that out, only 8% said yes.
Consequently, many GCs say they are not meeting executive expectations or effectively supporting their boards, Gartner reported. Fewer than half say they play a significant role in identifying and managing emerging issues, providing CEO support, participating in executive corporate initiatives or establishing company strategy.
Gartner has defined GC effectiveness as the achievement of personal objectives, influence with CEOs and contribution to corporate results. "Achieving these three components at least means you've done your job, have the ability to sway decisions when necessary, and help the company prosper," Abbott Martin, vice president for research in the Gartner Legal and Compliance practice, said in a written statement. "Unfortunately, only 1 in 5 GC meet this standard of effectiveness. This is concerning in an environment where many are looking to the GC for leadership."
Gartner has also published a report identifying behaviors common to "personally effective" GCs.
Gartner's top tip for GCs is to carve out an executive role. "The most effective GC spend 52% more time on strategy and 42% more time providing business guidance than their peers," Martin said. "They achieve this by having intentional conversations with the CEO and the board about their highest value role and the corporate decisions that most benefit from GC involvement."
Martin advised that GCs "do their best to avoid becoming bogged down in the more tactical nature of day-to-day legal work and instead use the time to provide guidance to executives at the highest level."
When it comes to managing risk, it's best to be proactive, Martin said. He advised that GCs "address this challenge head on" by helping reach a consensus for risk appetite.
"This is about proactively addressing the company's risk exposures—whether legal or not," Martin said.
Gartner places a premium on "ruthless" time management. The firm reports that GCs are spending between a quarter and a third of their time in ways they don't need to. This takes many forms, such as doing work someone else should have done, being in meetings where their involvement was unnecessary, or having their planned schedule interrupted.
"Personally effective GC are ruthless about their time management and as a result have 27 fewer 'wasted' days a year," Martin said. "Simple behaviors can make a dramatic difference in time management. For example, simply announcing your priorities reduces interruptions and empowers staff. GC should also audit their schedules to make sure they align with their priorities."
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