A Look at the Evolving, Expanding Role of General Counsel

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For today’s top in-house lawyers, the practice of law is just one of their numerous responsibilities

The ability to assume many different roles within an organization has always been part of a general counsel’s job description. But recently, that ability is being stretched.

A company’s general counsel (GC) is expected to advise on more matters that may be grounded in law but extend to other areas, including brand protection, cybersecurity, and strategy development. As a result, it's no longer enough to be a trusted legal advisor. 

Here is a look at what it means to be the highest-ranking legal professional within many organizations today.

An evolution already in progress

The pandemic and social unrest of 2020 shifted the priorities of many company legal leaders. Both events demanded changes to operational policies and heightened attention to compliance and risk management.

In many companies, the GC (sometimes known as the Chief Legal Officer) was called upon to develop policies regarding mask-wearing, vaccinations, and equity issues involving remote employees. They have also played leading roles in corporate boar rooms as companies navigate Environmental, Social, and Governance (ESG) issues and changing public expectations. 

Organization and brand reputation management is another growing focus for GCs necessitated by the pervasiveness of social media. And add to that list the ever-increasing problems of data breaches, ransomware attacks, and consumer privacy issues all organizations face today.     

"Cybersecurity, compliance, and data privacy" were rated the "most important areas for businesses," according to a 2021 survey of almost 1,000 Chief Legal Officers from 44 countries and representing 21 industries. Although these items have been prominent concerns for the past three years, cybersecurity rose to the top of the list in 2021. 

Traditionally, the top legal leaders of large companies have been part of a chief executive’s “inner circle” of trusted advisors. More recently, the trend is toward recasting the GC role as a crucial C-level position that’s a “viable stepping-stone” along the path to CEO.

New roles and increased regulatory pressures

An essential function of a company’s legal department is to manage risk and oversee compliance with regulations. And for many GCs, each day on the job now presents a potential “minefield of risk.” The shift to remote work is partly responsible for increased threats: dependence on unsecured Wi-Fi, a “widely dispersed workforce,” and federal and state employee safety mandates pose significant challenges.  

In-house legal departments are also being pushed to upgrade their processes and adopt new technologies to become leaner and more efficient. The GC is often tasked with leading this initiative. In addition, corporate boards face increased pressure from consumers, investors, and government regarding ESG and diversity, equity, inclusion, and advancement (DEI&A) initiatives. For GCs, this means taking a leading role in ensuring policies reflect the times and protect an organization from legal liability. 

Some GCs take an active part in reshaping hiring procedures, overseeing environmental compliance, and setting guidelines that shape a company's culture. In addition to providing legal advice, they act as “stewards” of their company’s values and drivers of institutional change. 

Adding skills to meet the rising expectations of legal leaders

With so many roles to play and so much at stake, today’s GCs must offer companies more than just legal expertise. As part of the evolution of a top legal officer toward “full strategic business partner” — and potential successor — to the CEO, GCs need to look past the traditional skills required in their positions. 

Of course, having a broad and deep legal pedigree can separate an aspiring GC from the second-place finishers. But developing a range of “extra” skills that give organizations a competitive advantage helps round out a top lawyer’s resume. 

Strategic management skills, financial astuteness, and big-picture vision are necessary qualities for corporate legal leaders, particularly those with the highest ambitions. True technical proficiency with AI, cloud tools, and machine learning help with cybersecurity concerns. Legislative knowledge aids with regulatory matters and setting a company’s operational policies. Awareness of social issues and consumer trends is instrumental in advising the chief executive and the board, especially during times of crisis.

And do not underestimate the “soft skills” a seasoned professional must bring to the table. Aspiring leaders should fine-tune their emotional intelligence and leadership style. Today’s leaders require empathy, flexibility, and resilience to guide and inspire others. As GCs become even more central leadership figures, these qualities (or their absence) will be on full display throughout organizations. 

Carrington Legal Search is celebrating 20 years in business: we were in the trenches with our clients during 9/11 and 2008. We partner with our clients to identify leaders and mission-critical talent to shore up and grow companies even during the most challenging times. We are here for you! To make our nationwide network work for you, get in touch at 512-627-7467 or email carrie@carringtonlegal.com.