The Challenge of Demonstrating Value
One of the biggest challenges facing a new general counsel, particularly one who is the first-in GC, is helping the business understand and leverage the true and inherent value of the legal function. A new GC knows that she needs to focus on quickly assessing the risks of the business and prioritizing legal goals and objectives. What often gets overlooked as a priority, however, is ensuring that her leadership team and business clients understand the value of the legal department and when to leverage the strengths and talent of the legal function.
Oftentimes, the legal department is viewed as a cost center, or worse, a roadblock. As a result, legal is often called into a matter late in the game, to “paper over,” decisions rather than to be a partner in the early strategy. This reactive approach not only makes legal’s job more challenging, but also leaves a tremendous amount of the GC’s value on the table.
Legal Department Reports as A Powerful Tool
One highly effective tool to bridge this gap is the legal department report. These reports – whether monthly, quarterly, semi-annually or another cadence – can serve as both an informational and a strategic communication tool to showcase legal’s value as a business enabler, rather than a hinderance, roadblock or necessary evil. While a “report” might sound dry, framed appropriately (think more like a sales pitch deck), it becomes akin to a marketing or business development tool for your clients– your internal business partners.
Lawyers coming from private practice are well-versed in the importance of business development—winning clients, nurturing relationships, and demonstrating value. However, what many lawyers don’t realize, or focus on enough, is that business development is equally, if not more, critical in-house.
The challenge shifts: instead of being a firm revenue generator and marketing yourself as a vital client advisor, you now must navigate the perception of being an internal cost center. The key to success is convincing clients that you are a proactive, strategic partner that can help them reach their goals faster and more effectively.
Providing a visual snapshot of legal activities and accomplishments over a certain period of time enables a GC and her team to demonstrate not just how much work legal is getting done for the business, but also the ways in which legal supports and optimizes the business company-wide and department by department. It helps change the narrative so business can understand when legal should be brought in and how to leverage legal as a strategic partner, which is what every GC wants.
Key Elements of An Impactful Report
A legal department report can be constructed in any number of ways. As a new GC, your role is to understand your client, and determine the format, tone and level of detail that will resonate. Consider using any approved templates used by the business to help frame the report in a familiar “business-oriented” format. If you have a team, preparation of the report should be a team effort, not just to ensure that all notable activities are properly captured, but also to build a culture with your team that normalizes internal marketing and business development activities as a critical part of the legal department’s work stream and strategy. Contents of the report may include any or all of the following:
The Numbers. Start with a one-pager that highlights the sheer volume of work that passes through the legal department, which highlights overall productivity, e.g. 200 NDAs, 60 commercial contracts, 10 M&A deals, 15 new patent filings. You can also include turnaround times – average NDA review time 48 hours, average commercial contract review time 5 days, etc., or any other similar data that shows your positive impact on the business and getting things done.
Company-Wide Big Wins. If legal played a pivotal role in the company through a significant transaction, such as a reorganization, a financing, or resolution of a litigation, you should highlight those wins. You want your leadership team to understand the role you and your team played in helping them execute their top priorities. This section is also a great place to highlight specific people on your team who contributed to the "wins", as oftentimes leadership, especially the CEO, doesn't really know what others on the team do since he/she doesn't interact with them on a daily basis.
Department-by-Department Wins. Tailor the report to show how the legal team supported each of your business clients. As a new GC, it’s critical to do a listening tour early on to understand each department’s pain points and areas where they could use support. When the time comes to generate the report, include one slide for every department that highlights the issues identified (e.g. slow and clunky customer contracting process) and the ways in which the legal department helped solve those issues (e.g. new streamlined customer contract forms, more efficient contracting process and quicker conversion to execution). And of course, certain modifications may need to be made for confidentiality purposes for certain departments.
Legal Team Bios. Legal is often viewed as a faceless function, and you and your team might have to work extra hard to overcome this impression and demonstrate your collaboration and partnership with the business. Don’t overlook the importance of getting to know each other as humans. Your business partners will be more likely to keep you top of mind and pull you into matters early if they know who you are, and you and your team are relatable. At the end of every report, include a bios page, with photos and personal details/fun facts about each team member to help demystify the team.
Using the Report as an Opportunity for Conversation
Once you and your team have pulled together the report, simply circulating the report likely will not yield the desired results. Instead, consider scheduling a presentation to walk through the highlights, particularly for the first report. Use this opportunity to spark conversation and gather feedback from the leadership team. Ask if this is in line with expectations, whether there is a better or different format that would be useful to the team, and what other data they might want to see. This approach not only showcases the legal department’s value but also opens the door for deeper discussions on how legal can be a business partner and add further strategic support.
Chief Legal, Compliance and Administrative Officer, Closed Loop Partners
Advisory Board Member, Ready Set GC
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