Everyone likes to shed their excesses as the summer approaches, so they can appear streamlined and toned when exposed in the public eye.
A company following this trend is British Telecommunications, which has been shedding its business interests over the past six months and looks set to continue doing so.The company's directories' business, Yell, has been sold for approximately £2.14 billion and there is talk of BT Wireless, the group's pan-European mobiles business, de-merging in late autumn.
Furthermore, Pierre Danon, the chief executive of the newly separated retail division -- BT Retail -- has announced cost-cutting exercises that will lead to the loss of 2,000 jobs across the sector.
There is also speculation that deals may be struck with Sky and ONdigital to offer telephone and television packages.These and other measures -- a thumping £5.9 billion rights issue -- are designed to reduce the £28bn debt mountain inherited by former BBC chairman Sir Christopher Bland when he recently became chairman of BT.While all this restructuring may lead to uncertainty among most of the company's employees, members of BT's in-house legal team have barely had time to stand still and consider their emotions.'I can honestly say that the last three months or so have been the busiest time I have known in the legal department,' says Anne Fletcher, group general counsel at BT, and an employee of the company for 15 years.'As well as dealing with a number of major matters, we have reorganised the legal department to align much closer with ou r individual lines of business, so one of the challenges facing us is to ensure that we maintain the benefits of our legal community in this new environment,' she says.The BT legal team comprises 230 staff, including 135 lawyers, based in offices throughout the UK and worldwide.
However, most of the team are housed in BT's headquarters in Newgate Street in London, near St Paul's Cathedral, though the company is moving from this site shortly.The influx of work has not gone unnoticed by Jo Wadham, legal counsel in the commercial team, who says that 'the deal flow has been quite incredible and the quality of work of the highest standard'.
Ms Wadham was a trainee solicitor at City giant Linklaters before joining BT in October 2000.Since joining she has worked on a number of corporate finance transactions, including warrant deals with commercial partners, and the sale of Yell in the UK and US to a consortium of funds advised or controlled by investment firms Apax Partners and Hicks Muse Tate and Furst.Ms Wadham says she has no regrets about moving from private practice to her in-house role.
'I wanted to know what it was like on the other side of the fence,' she says.
' The work has generally been higher paced and continuous, but there are opportunities to experience a far greater depth of work than I would in private practice.'Despite recent research concluding that in-house lawyers' salaries have increased by up to 40% (see [2001] Gazette, June 28, 3), it is generally recognised that the remuneration is not as great as that available to lawyers at big City firms.
However, as Ms Wadham points out: 'The hours are definitely better.
When there is transactional work to be completed it obviously must be done -- but there are no brownie points to be gained by working through the night.'On this point Ms Fletcher adds: 'Working in-house is definitely not a soft option.
However, the emphasis is on getting the job in hand done, rather than recording a certain number of hours.
It's a different culture that suits a certain type of person.'George Ritchie is currently on secondment as the manager of the office of the group general counsel, and is another who was employed in private practice - as a criminal advocate for Welwyn Garden City firm Crane & Staples.
'When I worked for a firm my position was "I am a lawyer, my business is law", he reminisces, 'but now in BT it is "I am a lawyer, my business is telecoms" -- you really get to know your area'.He continues: 'At a higher level, being made a partner in private practice is a result of good lawyering.
In a company such as this, you receive management training as well, making your people skills all the better.'Before his secondment, Mr Ritchie worked closely on UK telecoms regulation by the Office of Telecommunications (Oftel).
More recently, he has been involved in the roll-back of telecoms regulation, which follows the development of effective competition.
He anticipates with interest the regulation that will stem from a new communications bill, and the creation of telecoms regulator Offcom.A recurring perceived benefit of in-house work seems to be the input lawyers get to have in initial company decisions, as Mr Ritchie says: 'A little advice early on usually works out a lot cheaper.' In contrast, to fire-fighting, as many lawyers in private practice spend their days doing, in-house legal teams have the chance to stop a problem before it happens.Andrew Parker, general counsel and head of business affairs for BTopenworld, the Internet service provider division of BT, says: 'Yo u are close to the decision-making process of tasks, have a greater input in structuring deals and a higher degree of commercial involvement in the business.' Mr Parker heads a group of 20 lawyers and regulatory specialists and is involved in all key decision making.
He continues: 'You are required to provide solutions to avoid problems.
I have found working in-house to be something of a risk-management exercise -- you are using law as a tool to meet your common business goal'.Ms Fletcher adds: 'The level of responsibility is high.
You don't want to say "no" to an idea that appears beneficial -- but sometimes you have to.'Lawyers considering a move in-house may fear that the work may be repetitive and mundane, as it emanates from a restricted business area.
However, Mr Parker says that he would 'never have got the breadth of experience and quality of work in a private practice'.
In his previous work with the BT legal team, he advised on the first video-on-demand trial -- the digital television system which enables people to pick items to watch on their TV -- in the world, oversaw the establishment of a global satellite communication station in New Zealand, and handled sponsorship of BT's zone in the Millennium Dome.His sentiments are echoed by Jenny Gallagher, head of legal, broadcast and satellite communications.
Over the past year, her work has primarily been contractual, but 'with the exception of matrimonial work, we deal with almost all areas a City firm would'.'In the past I have dealt with a great deal of marketing and advertising work, for example ensuring that BT advertising is "decent, honest and truthful" and in line with advertising standards,' she says, 'but I am also involved in areas of competition law, mergers and acquisitions, and a wide range of commercial issues.'Mr Ritchie adds: 'I consider myself fortunate to be able to shift around and experience all different types of work.'And if you get tired of lawyering, Ms Gallagher says that 'avenues are open for you to move into the business side'.
'The head of the BT transport fleet was in the legal team,' she comments.Despite such a sizeable and committed legal team at BT, it is still necessary to outsource work, such as when they teamed up with City firm Allen & Overy on the sale of Yell.
'We primarily outsource work during peak periods when we simply don't have the necessary resources to cope,' says Ms Fletcher.
'But we also use external firms for a specific area of law with which we don't regularly deal, and on some international matters.'I think it is vital to form a partnership with external lawyers on these occasions,' she says, 'to share knowledge and spell out exactly what both teams expect.'BT expects a high level of lawyering from those firms contracted to do work and this requires an understanding of the company culture and knowledge of the field.
BT will decide on the firm's identity by either a beauty parade or as a result of positive experiences; as Ms Gallagher says: 'If the external lawyers don't show the levels of commitment we expect from them -- they will soon be picked out.'Mr Parker warns: 'Some firms may see working with in-house lawyers as a marketing opportunity.
We try and pick a firm who will not try and substitute the BT legal team, but co-exist with them,' he says, 'there are some cultural adjustments they will need to make when coming in-house.'He adds that most of the firms BT has worked with in the past have been co-operative and helpful, but stresses that 'in this cost-conscious world you want to get 100 pence to the pound for your legal expenditure.'Apart from Allen & Overy, Ashurst Morris Crisp is frequently used by BT, and recently acted on a £2.36 billion outsourcing of the company's property portfolio.On a more permanent basis, Ms Fletcher describes the kind of person suited to in-house work to be 'obviously a good lawyer, but also commercially minded and capable of assessing risks'.
BT takes on a new trainee solicitor every year and usually offers them further employment once they have qualified.
'The person must not only be a good lawyer but must be able to use their legal skills in a commercial context,' says Ms Fletcher.
'We want people who can provide solutions rather than raising problems.
Excellent interpersonal skills are also important.'Mr Ritchie warns: 'This isn't an area of law to be dabbled in lightly or occasionally.
It's fairly specialised and there is a great deal of learning to do.
There is also no chance of being able to hide from your client,' he adds, 'as they are also your employer'.Those lawyers who are in desperate need of a culture change and feel they can meet these stringent requirements, might just be the kind of person to answer BT's call.
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