The first installment of the Law Society of England and Wales’ GC350 study, sponsored by LexisNexis, has found that two-thirds of surveyed GC now have a seat on the board of their company. Around 50 per cent of GC now report directly to the CEO, while a further 17 per cent report to their companies’ chief financial officer. ‘[In-house] counsel are growing their influence and credibility. Organisations are recognizing the importance of the role that the general counsel plays,’ commented Catherine Dixon, Law Society chief executive.

Greater power, greater responsibility

While the majority of GC can exert influence over the legal department’s budget, the widening scope of the GC role and in-house legal function is placing a pinch on available resources. According to the research findings, around half of GC are able to set the budget for their legal department, while around two-thirds can decide how their department budget is spent. While most believe keeping work in-house in-house to be most cost effective, approximately 58 per cent of legal department budgets are still being directed towards outside counsel. However, approximately two-thirds of surveyed GC are now using panels for their external legal work, believing that this approach offers better cost control and stronger relationships.

With resources stretched and responsibility growing, the pressure is on GC to measure and communicate how their budgets are spent and how they are bringing value to the business. Many GC feel like the list of responsibilities attached to their role is getting longer; around 77 per cent of respondents felt that they had a great deal of influence of steering the overall ‘conscience’ of their business, while a majority felt they played in important role in identifying (76 per cent) and managing (56 per cent) organizational risks. However, many GC are still struggling to identifying appropriate metrics with which to quantify and communicate performance in the legal function.

The Law Society’s GC350 is the first in a series of reports which will develop a baseline for the in-house industry. 

Sources: The Law Society; Law Society Gazette