In today's complex business landscape, collaboration between in-house legal departments and external counsel is crucial. Law firms are an extension of a legal team and provide substantive expertise unavailable on the team and support on high-volume, high-risk matters requiring additional expertise. This allows the in-house legal department talent to be strategic business partners to the company by handling high-impact legal matters. Establishing and maintaining strong relationships between these two entities can significantly enhance efficiency, reduce legal costs, and ultimately contribute to the success of the organization's success.
Following are some key strategies that can help corporate in-house legal departments develop robust partnerships with their external counsel.
- Clear Communication and Expectations
Establishing open and transparent communication channels is foundational to a successful relationship. In-house legal teams in partnership with Legal Ops must clearly communicate their expectations of the relationship with the firm on how matters will be managed (substantively and financially) and provide context around key business factors, decisions, and desired outcomes that can impact the legal advice. Financial arrangements between the parties is often a difficult conversation for legal teams to have. A partnership with Legal Ops that can provide the necessary data and business acumen can facilitate what many often find to be an uncomfortable discussion they fear will taint the relationship.
- A Collaborative Approach
Foster a collaborative mindset within the legal ecosystem. Encourage external counsel to view themselves as an extension of the in-house team, working towards common objectives. This approach helps create a sense of shared responsibility and commitment to the organization's success.
- Understanding Business Objectives
For effective legal support, external counsel must have a comprehensive understanding of the organization's business objectives. In-house legal teams should provide insights into the company's industry, market challenges, and strategic goals. This knowledge allows external counsel to tailor their legal advice and work product to align with the broader business strategy. If there is no visibility into business objectives, unclear lines of communication, and a lack of timely guidance, the quality of the firm’s work is often impacted and leaves everyone frustrated.
- Strategic Alignment
Ensure that external counsel aligns their legal strategies with the organization's overall business strategy. This requires a deep understanding of the company's risk tolerance, corporate culture, and long-term goals. The closer the alignment, the more effective and value-driven the legal support will be.
- Regular Training and Knowledge Sharing
Legal landscapes are dynamic and subject to constant changes. In-house legal departments should facilitate regular training sessions and knowledge-sharing initiatives with external counsel. This ensures that the external team remains current on industry regulations, emerging legal trends, and changes in the organization's internal policies.
- Budget Management and Cost Predictability
Transparent and predictable budgeting is crucial for both parties. In-house legal teams should collaborate with external counsel to establish realistic budgets for legal projects. This helps control costs and allows for better financial planning on both sides.
- Feedback Mechanism
Establish a structured feedback mechanism to assess external counsel’s performance and allow the firms to evaluate the in-house legal team. Regular evaluations provide an opportunity to discuss what is working well in the partnership and identify areas for improvement. Constructive feedback contributes to the ongoing development of a strong, collaborative relationship.
- Technology Integration
Incorporate technology solutions that facilitate seamless collaboration. Shared secure communication platforms, workflow tools, and eBilling/matter management tools enhance efficiency and streamline the workflow between in-house and external legal teams.
Building and maintaining strong relationships between corporate in-house legal departments and external counsel is essential. By fostering clear communication, collaboration, and alignment with business objectives, organizations can create a legal ecosystem that contributes to overall business success and ensures mutually beneficial success. A strategic partnership between in-house and external legal teams is a powerful asset in today's fast-paced and ever-changing business environment.
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Liz Lugones COO/Senior Advisor, UpLevel Ops Liz has more than 20 years of extensive legal operations experience building and managing LegalOps teams across a wide range of industries in both public and private companies. Prior to joining UpLevel, Liz served as the Senior Director of Legal Operations at WeWork and was Director of Legal Operations at various companies including UnitedLex, DXC Technology, Becton Dickinson, and MetLife. She is based in Westfield, NJ, and holds a BA in Political Science and Journalism from Rutgers University. Liz is also certified in Lean Six Sigma and is a fluent Spanish speaker. |