Why do companies have their own law departments? It is an important question for leaders of law departments to ask themselves and their teams. It is an important question for in-house or want-to-be in-house lawyers to understand. However, it is a question that is not asked nearly enough.
Do a quick Google search for why companies have law
departments. You will find legal
websites that say various versions of “to provide preventative legal management,”
“to help the business avoid costly mistakes,” or to avoid punitive impacts of
decisions made without legal counsel.” These
answers are framed from a risk mitigation or risk elimination perspective.
You will also find websites that approach the question from
the business’s side. They say things
like “be a trusted partner to the business,” “help the business understand legal
risks as we make decisions,” “be a key resource,” and “help create parameters
within which the business can operate.”
In conversations with lots of chief legal officers and general counsel as well as business people who rely on their law departments, the aims of an in-house law department distill down to about four pillars:
· Quality legal advice timely.
· Position the business for positive outcomes.
· Develop people.
· Cost effectiveness.
Need some help thinking about the application of these
pillars to your law department? Watch for more posts. And, second, let’s
talk.