GENERAL COUNSEL: concern about lack of resources

Two out of five senior in-house lawyers (40%) are looking to cut their external legal spend, research released to the Gazette this week has revealed.

A face-to-face survey of 40 general counsel conducted by the CLO programme, a management development scheme for general counsel and heads of legal, found that in-house legal departments felt under-resourced and under pressure to reduce spending.

Almost half of the general counsel interviewed expressed concern about the lack of resources in their department, with some feeling frustrated that a shortage of experienced lawyers in their teams was leading to mistakes.

A number of interviewees said they felt a constant pressure to justify their department's existence.

Nearly 40% said they would be asking for capped fees and fixed costs from law firms in a broader range of work.

But only slightly more than a third were looking for a reduced hourly rate, and 15% expressed an interest in risk-sharing or partnering arrangements with law firms.

Many general counsel see the solution to under-resourcing in a closer relationship with the board, and a link between the legal department and the overall business objectives, the survey revealed.

While half of the lawyers interviewed attended board meetings as a matter of course, one-fifth attended by invitation only, and two of the general counsel questioned were rarely allowed to participate.

Susan Coughlan, director of business affairs at the CLO programme, said: 'The report revealed that general counsel are questioning why they are not perceived in the same way as their peers in the United States.

General counsel seem prepared to better develop their management and financial skills as a way of presenting themselves to the board as essential members of the management team.'

LINK: www.cloprogramme.com

Rachel Rothwell