In an era of heightened market and geopolitical risks, general counsel are tasked with steering their businesses soundly through increasingly treacherous waters, and occasionally need extraordinary solutions from their law firms. GCs across sectors share what they look for in their external counsel.
What are some of the best practices that you’ve experienced with your outside counsel, and how would you recommend that they do to maintain a good working relationship with in-house team?
ALEXANDER SHAIK, general counsel and chief compliance officer, ADM Capital: In the current market, a strong external counsel will act as a sounding board for key structuring ideas in private credit transactions from inception of each transaction. Strong due diligence, drafting and execution should all be founded on an understanding of the underlying risks and rewards of the transaction so as to act as an extension of the investor/lender and not just an exercise in checking boxes.
As legal spending budgets continue to be constrained, good law firms maintain close dialogue with their client GCs to manage expectations and understand how to prioritise workstreams. At ADM Capital, we focus on developing deep relationships with core law firm partners with whom we can share our focus on growth transactions with downside protection and a strong emphasis on E&S additionality and corporate governance.
NADIM EL HAJ, chief legal officer, Abu Dhabi National Hotels: During my career, I have worked with various external legal counsel (whether international or local firms). I have witnessed firsthand a variety of legal skills ranging from understanding the business, bringing strategic insight into the deal, mastering how to draw a critical path, and innovative approach in terms of deal structuring and implementation.
Some lawyers have demonstrated a combination of such skills. Added to such skills, some lawyers have demonstrated genuine character with unwavering resolve. Such lawyers belong to the category of role models, inspiring their colleagues and clients alike. In other words, they are the driving force behind the success and growth story of the regional practices within their firms. They embody teamwork, a win-win mindset and a passion for excellence.
An in-house counsel should set up a panel of external legal counsels led by such extraordinary talent. The return on investment from setting up such a panel of external legal counsels and leveraging on such skills while steering the strategy in critical transactions, is exponential in terms of structuring and successful execution/rolling out of strategic deals within unheard deadlines. Such execution of consecutive deals is a source of pride and humility and ultimately leads to a growth turnaround within the in-house counsel’s organisation.
Pride with maturity translates into a feeling of self-satisfaction. Humility helps you to maintain a sense of reality. These two virtues were imprinted in my DNA by my father, who was among the founding generation of lawyers in the Lebanese legal community and believed that humility as pride is a powerful force that can lead to individual and collective success and growth.
Hope you set up your network of law firms in order to sail on your growth journey soon.
EMI TAKEDA, managing director - legal, Accenture Japan: Regarding best practices in working with outside counsel, I would like to introduce three initiatives: Sessions for panel firms, tailor-made training, and the Outside Counsel Diversity Award.
Firstly, we emphasise the importance of closely aligning with outside counsel who understands our company's values and business. To facilitate this understanding, we hosted a session for panel firms, introducing our company, team, and the services we offer, with a focus on topics such as sustainability and generative AI. This enabled the law firms to gain a better understanding of our business and foster stronger relationships.
Secondly, while it is essential for the in-house legal team to stay updated on the latest legal topics, it can be hard to find time for learning among daily duties. To bridge this gap, we seek support from outside counsel to develop specialised training for us. By sharing the pain points we face in our daily work and jointly developing the training content, we ensure that the training is well-designed and highly relevant to our work.
Finally, we view our relationship with law firms as extending beyond business matters to encompass social significance. For example, we recognise law firms that promote diversity through the Outside Counsel Diversity Award. By fostering a relationship where we mutually influence and support each other, we believe we can establish a long-term, positive partnership.
