Hourly rates, #MeToo and the Big Four: GC predictions and requests for 2019
Top GCs on their expectations for the coming year - and what they're hoping for from their external firms
December 31, 2018 at 05:44 AM
8 minute read
As we move into 2019, some of the UK's top in-house lawyers share their predictions for the coming year – and reveal what they would like to see more of from their legal advisers…
Chris Fowler – group general counsel for technology and transformation, BT
"My prediction for the in-house legal market in 2019 is that we will see an increasing focus on the compliance landscape and the need to do more horizon-scanning, as well as greater commoditisation and consistency of contracts – organisations simply can't afford protracted negotiations on the same issues.
"In-house teams will continue to grapple with the practical challenges of developing and implementing tech and standard datasets to support their overall options, and hopefully we will get beyond isolated use cases.
I think we will see interesting developments in the legal capability and competencies of the Big Four
"As well as this, I think we will see interesting developments in the legal capability and competencies of the Big Four as we go through 2019.
"From law firms in the New Year, I'd like to see more on solutions which leverage the data and technology they posses, and greater collaboration on joint propositions between traditional and non-traditional providers. I'd also like to see them living and breathing diversity and inclusion with industry-wide benchmarks and targets.
"It would be great if we could shift the debate on fees beyond hourly rates or fixed fees, and see the use of metrics which law clients live and die by, such as net promoter score."
Rob Booth – general counsel and company secretary, The Crown Estate
"I am hopeful that 2019 will see three significant developments in the UK legal market. The first will be a proliferation of genuinely collaborative partnerships between law firms and their clients. Not just closer working relationships and good structuring, but a real move into the co-creation of client value.
"The second is that I think the in-house community will use 2019 as the year to amplify their views on diversity of thought in the industry, and seek an acceleration in change from their law firms and their own organisations.
I believe that we will come down the technology hype curve
"Lastly, I believe that we will come down the technology hype curve, and start to find those few good tech solutions that are genuinely aligned to what clients and law firms need to really enable those extra few percentage points of performance. These three issues have been hot topics of conversation in 2018, but the time is upon us to get on with the doing."
"What I'd like to see more of from law firms in 2019 is more frequent and regular contact with me and my heads of legal, so that we can discuss with them our business priorities. If law firms are more attuned to the pressures and challenges that GCs face, they could be more effective partners.
"I also want them to convey things outside the transactional that may be of interest to me as a GC (and chief of staff), and that could help me to prepare better for the unforeseen and the unexpected."
Kate Burns – general counsel and company secretary, Notonthehighstreet
"High on the team's agenda for 2019 will be the impact of Brexit. We have all been planning in somewhat of a vacuum, so we will be watching developments keenly as well as preparing for the economic after-effects.
"Automation and efficiency will be front and centre; however, we will be looking for small wins for specific issues rather than broader solutions.
All legal teams will be thinking about the impact of behaviour in the workplace, from compliance to the ramifications of #metoo
"From a people perspective, we believe that all legal teams will be thinking about the impact of behaviour in the workplace, from compliance to the legal ramifications of #metoo – for example, will settlement agreements no longer contain confidentiality provisions?
"With our legal providers, we would like to form more meaningful client relationships with a better understanding of each other's culture, priorities and concerns. We will continue to look for different fee arrangements and to find more efficient, tech-driven ways of supporting in-house teams on limited budgets. We'd like to see tailored marketing on the issues we really care about and the facilitation of peer-to-peer networking.
"And of course, we use the words 'legal providers' as opposed to law firms, as we expect to work with an increasing array of different legal service providers in the coming year in the search for efficiency and cost savings."
Stuart Kelly – group general counsel and company secretary, Network Rail
"Firstly, we want law firms to innovate themselves in 2019 – we'll stop thinking that you can outsource for the solutions.
"It will become even more clear to clients, if the penny hasn't dropped already, that firms who regard themselves as innovators are not the answer to their need for change. If necessity is the mother of invention, be clear: their necessity is not likely to be yours and yours is not theirs. There is no panacea or shortcut, no matter how much you may wish for it. So we won't be seduced by the innovation awards any more.
"My general prediction for 2019 is that there may be even more consolidation of the market. Headlines may be large, good for them… but it won't make that much difference to most of us.
For the umpteenth year running, the death of the hourly rate will be predicted. Of course it won't [die] and we'll be saying the same thing again next year
"Also, the hourly rate will remain as prevalent as ever. For the umpteenth year running, the death of the hourly rate will be predicted. Of course it won't [die], and we'll be saying the same thing again next year.
"GDPR – who's going to be made an example of? If 2018 was the year of GDPR consultancy onslaught – that felt a bit like a modern-day example of Y2K doom-mongering – 2019 will be the year that will confirm that it is much more real, as someone will be made an example of."
Bjarne Tellmann – general counsel and chief legal officer, Pearson
"2019 will be another challenging year for in-house teams.
"Agility and internal flexibility will be a focus, with more legal departments looking at how to develop fluid, agile and 'upskilled' structures, moving away from traditional siloed groups of specialists and generalists. 2019 will be about developing smaller, roving and highly capable professionals who can be deployed where the need is greatest. We will also see the continued rise of legal operations, focusing on metrics, efficiency and managing the 'business of law'.
2019 will be another challenging year for in-house teams
"Data privacy will be a substantive focus for many global GCs. GDPR has set off a push for stricter privacy laws across the world, with India, Brazil, South Africa, Japan and Australia having recently introduced or enacted new laws. In the US, a major new law was enacted in California, with at least 20+ other States and the US Congress considering new legislation.
"GCs will demand more innovative support from law firms in 2019, including the ability to leverage insights, data and technology to add value beyond substantive legal advice, and more creative ways to charge for services beyond the billable hour. 'New Law' will continue to innovate – and law firms must rise to the occasion."
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