Establishing In-House Legal Dept

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By in-house counsel,
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InfoPAKSM
Establishing the In-House Law

Department: A Guide for an
Organization's First General Counsel
Association of Corporate Counsel

Association of Corporate Counsel
1025 Connecticut Avenue, NW, Suite 200
Washington, DC 20036 USA
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2 Establishing the In-House Law Department: A Guide for an Organization's First General Counsel

Establishing the In-House Law Department: A
Guide for an Organization's First General
Counsel

Updated July 2012

Provided by the Association of Corporate Counsel
tel +1 202.293.4103
fax +1 202.293.4107
www.acc.com

The first general counsel of an organization has a very important and difficult task—they
must create the position that will guide their company legally and advise them in their

business, without precedent and typically, without established structures or guidance.
Whether the attorney hired to create the organization’s first in-house legal department has
served as in-house counsel previously or not, creating the new in-house legal function can
be both daunting and fraught with challenges. This InfoPAK℠ seeks to guide the attorney
through this process, addressing the range of topics he/she will encounter, from
understanding company expectations to how to communicate with the new client to
establishing budgets and processes. In addition, this InfoPAK includes firsthand
experiences shared by five in-house counsel who served as their organizations’ first GC,
ranging in experience, industry/company size, and perspective.

The information in this InfoPAK should not be construed as legal advice or legal opinion on
specific facts, and should not be considered representative of the views of ACC or any of its
lawyers, unless expressly stated. Further, this InfoPAK is not intended as a definitive
statement on the subject, but is intended to serve as a tool for readers, providing practical
information to the in‐house practitioner.
This InfoPAK was written by Sabrina L. Bosse, Assistant General Counsel, Association of
Corporate Counsel (ACC), with the assistance of Eric Duncan and Nicholai Diamond, 2011
Summer Law Clerks, ACC. For additional information, please see the “About ACC” section
of this InfoPAK or visit www.acc.com.
A special thanks to the following ACC members for their generous contributions in sharing
their insights on the role of the first General Counsel:
Craig Long, General Counsel, Capital Financial Service Corporation
Maria Pasquale, Senior Vice President Legal & Chief Counsel, Celgene Corporation
Catherine Valentine, Vice President Legal & General Counsel, Logitech, Inc.
Nicolas Vanasse, Vice President, Chief Legal Officer and Corporate Secretary,
Aveos Fleet Performance, Inc.
Copyright © 2012 Association of Corporate Counsel

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Contents
I. Introduction ....................................................................................................................................... 6
II. Understanding the Role of a First General Counsel ...................................................................... 7
A. Company Expectations ......................................................................................................................................... 7
1. General Expectations .......................................................................................................................... 7
2. Understanding Company-Specific Expectations ........................................................................ 10
3. Managing Expectations .................................................................................................................... 12
B. What Can a First General Counsel Offer? ................................................................................................... 15
1. Key Roles of In-House Counsel .................................................................................................... 15
2. Quantifying Benefits and Demonstrating Law Department Value ........................................ 17
C. Law Firm Partner v. General Counsel: How Are They Different? .......................................................... 19
III. Getting Started as the First General Counsel ............................................................................. 21
A. Codify Expectations ........................................................................................................................................... 21
B. Understand Company Culture ........................................................................................................................ 22
C. Learn About Your Company’s Business Operations.................................................................................. 23
1. Observe the Operations ................................................................................................................. 24
2. Talk to Managers and Department Heads .................................................................................. 24
3. Look Through Files .......................................................................................................................... 25
4. Identify the Most Influential Company Executives .................................................................... 25
5. Read Corporate Documents and Public Filings ......................................................................... 25
D. Learn About Your Company’s Industry, Market, and Strategy ................................................................ 26
1. Industry Knowledge ......................................................................................................................... 27
2. Competitor Knowledge .................................................................................................................. 28
3. Company Strategy and Direction ................................................................................................. 29
4. Business Unit Strategy and Direction .......................................................................................... 30
E. Promulgate a Law Department Mission Statement .................................................................................... 31
F. Establish Reporting Relationships.................................................................................................................... 32
1. To Whom Does the General Counsel Report? ........................................................................ 32
2. Which Functions Report to the General Counsel? .................................................................. 34
For more ACC InfoPAKs, please visit http://www.acc.com/infopaks

G. Creating Company Policies .............................................................................................................................. 35
H. Suggested Timeline of Priorities for the First Year..................................................................................... 36
IV. Building Client Relationships ......................................................................................................... 38
A. Openly Communicate with Clients ................................................................................................................ 38
B. Market the Law Department ........................................................................................................................... 39
1. Introducing and Explaining Law Department Processes.......................................................... 39
2. Conveying a Law Department Culture ....................................................................................... 40
C. Set the Right Law Department Standards ..................................................................................................... 41
1. Demonstrate a Willingness to Assume Risk .............................................................................. 41
2. Run an Approachable, Open-Door Department ...................................................................... 41
3. Set the Standard for Excellence .................................................................................................... 42
D. Measure and Increase Client Satisfaction ...................................................................................................... 42
1. Surveying Client Satisfaction .......................................................................................................... 42
2. Increasing Client Satisfaction ......................................................................................................... 42
V. Identifying and Managing Responsibilities .................................................................................... 43
A. Overview of Typical Business and Legal Responsibilities .......................................................................... 43
1. Legal Responsibilities ....................................................................................................................... 43
2. Business Responsibilities ................................................................................................................. 44
B. Prioritizing Work ................................................................................................................................................ 44
1. Needs Assessment ........................................................................................................................... 45
2. Prioritization of Needs .................................................................................................................... 46
C. Budgeting .............................................................................................................................................................. 46
1. Overcoming Preliminary Budgeting Challenges ......................................................................... 46
2. Developing a Budgeting Process ................................................................................................... 47
3. Sticking to the Budget...................................................................................................................... 53
VI. Managing Outside Counsel ............................................................................................................. 54
A. Engaging Outside Counsel ................................................................................................................................ 54
1. Assessing Whether a Matter should be Outsourced or Handled Internally ...................... 54
2. Evaluating and Selecting Outside Counsel .................................................................................. 56
B. Supervising Outside Counsel ........................................................................................................................... 56

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1. Preparing Outside Counsel Guidelines ....................................................................................... 56
2. Drafting An Outside Counsel Retention Agreement............................................................... 57
3. Implementing Strategies to Manage Outside Counsel ............................................................. 58
VII. Developing the Law Department .................................................................................................. 59
A. Staffing the New Law Department ................................................................................................................. 59
1. Hiring Attorneys ............................................................................................................................... 59
2. Hiring Other Staff Members .......................................................................................................... 64
3. Recruiting and Retaining Employees ............................................................................................ 68
B. Technology ........................................................................................................................................................... 70
VIII. Ethics and Advocacy ....................................................................................................................... 70
A. Combining Roles as a Business Advisor and a Legal Advocate ................................................................ 70
B. Attorney-Client Privilege .................................................................................................................................. 71
C. Multijurisdictional Practice ................................................................................................................................ 72
IX. Sample Forms .................................................................................................................................. 73
A. General Counsel Job Description ................................................................................................................... 73
B. Sample Mission Statement ................................................................................................................................ 74
C. Client Satisfaction Survey .................................................................................................................................. 75
X. About ACC ...................................................................................................................................... 82
XI. Additional Resources ...................................................................................................................... 83
XII. Endnotes ........................................................................................................................................... 87

I. Introduction
The desire to avoid the high cost of hiring outside counsel, always a powerful motivator for
business, is being augmented in the current corporate environment by the recent economic crisis,
the need to cut costs, and the increasing need to comply with regulation stemming from the
corporate and financial scandals of the past decade. To combat this, larger companies are hiring
more lawyers to build up in-house1 legal departments to meet increasing business demands and
avoid high outside counsel costs.
Increasingly, lawyers are being hired for their business management experience as much as for
their legal knowledge. Attorneys are used to ensure that their employer is meeting the more
stringent requirements of securities regulations like the Sarbanes-Oxley Act of 2002 and financial
regulatory reform laws like the Dodd-Frank Act of 2010. “Executive committees realize the value
of having a GC at the table and the value of being able to protect a company’s interests early on,”
said Deborah Dorman-Rodriguez, senior vice president and chief legal officer of Health Care
Service Corp.2
The first lawyer employed by a company often needs guidance in many areas, and this InfoPAKSM
aims to provide that instruction. It is important to note that while in-house counsel will have wide
and varied areas of focus depending upon their company, this InfoPAK is designed to offer broad
advice for any corporate counsel serving as, or thinking of accepting a position as, a company’s
first in-house counsel/first general counsel. “New” corporate counsel may be given different
titles, including “General Counsel” (“GC”) or various executive titles.3 They may cater to the entire
company or only to certain business segments, and may have different previous work experience.
In fact, some are not only the first GC at the company, but this is also their first in-house position
(i.e., previously employed at law firms or for the government), so this resource also offers some
thoughts on the differences between private and corporate in-house practice.
The first general counsel hired by a company faces special challenges unlike those faced by the
general counsel who joins a company laterally to fill a pre-existing position. The latter general
counsel walks into an established structure, with a set of expectations and a history of legal
representation. The former will need to grapple with and establish a set of cultural and
operational issues their successor will not have to address.
This InfoPAK seeks to provide first general counsel with advice on how to make the most of their
position and succeed at doing so. It also provides practical materials like sample documents, lists
of issues to address, and checklists to help attorneys make the transition to working in-house.

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II. Understanding the Role of a First General

Counsel
A. Company Expectations
Before starting as a company’s first general counsel, it is important to understand the company’s
expectations when it decided to hire an in-house attorney. This information will shape the GC’s
priorities, as well as the legal department’s priorities (if there is a legal department) and enables a
first general counsel to better meet its client’s needs. Understanding company expectations
requires ascertaining both the general traits that companies expect from in-house counsel and the
company’s more specific expectations for the role of it’s general counsel/the legal function. Both
the general and specific expectations are explored more fully below.
1. General Expectations
In general, companies expect in-house counsel to exhibit the following attributes, often considered
to be critical success factors (each is described in detail below):
• Quality
• Business orientation
• Cost sensitivity
• Efficiency and productivity
• Ability to provide strategic and proactive advice
• Flexibility and versatility
• Speed and agility, and
• Risk management and controls.4


Diagram I below depicts these key success factors and how they have evolved in terms of
importance over time.
Diagram I5

• Quality: The concept of “quality” encompasses many discrete skills and attributes, such
as legal training, technical skills, professionalism, experience, judgment, client service,
communication, and negotiation skills. Clients are typically not attorneys, and may
therefore have difficulty evaluating the legal knowledge and skills of in-house counsel
and may instead base their assessments on more measurable aspects of quality like
responsiveness, timeliness, oral and written communication skills, personality, and
ability to work as part of a management team.
• Business Orientation: Clients often expect in-house counsel to be familiar with and
committed to the company’s business. Thus, in-house counsel are expected to possess
greater business and management skills than outside counsel and integrate more fully
with the company and its industry. This may require participation in client
management team meetings, physical visits to client sites, and frequent communication

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with key company executives. Section III(C) of this InfoPAK discusses in more detail
how to learn about a client-company’s business operations. In addition, GCs can
supplement their overall business and management skills through relevant continuing
education programs, such as ACC’s Mini-MBA for In-House Counsel program.6
• Cost Sensitivity: In-house counsel are frequently expected to produce cost savings for
the company and to manage overall inside and outside legal spending. To this end, a
company may expect its first general counsel to develop benchmarking, case/matter
management systems, and timekeeping tools to measure costs and communicate them
to the client. ACC has a variety of resources discussing the use of tools to demonstrate
cost sensitivity, including the InfoPAK “Managing Value-Based Relationships with
Outside Counsel.”7
• Efficiency and Productivity: Clients also expect in-house counsel to be proactive in

initiating improvements and innovations as well as determining ways to streamline
recurring work processes. For example, Craig Long, General Counsel at Capital
Financial Services Corporation, initially built support among his clients by proactively
proposing sample corporate policies in areas where he felt the company needed
established procedures.8 Mr. Long’s proposals were not always accepted, but he
quickly acquired a reputation for being productive and proactive.9 Meeting company
productivity expectations may also require efficient use of paralegals and non-legal
staff, delegation of non-legal matters to other company departments, decreasing time
spent on administrative tasks, avoiding redundancy, and making sure the legal
department is open to adding new capabilities as needed. This InfoPAK provides
greater detail on prioritizing work processes and utilizing other staff in Sections V(B)
and VII(A), respectively.
• Flexibility and Versatility: Clients also expect in-house counsel to be able to adapt to
new innovations, especially in the areas of communications and technology. A new
general counsel should be ready to leverage technologies such as intranets, matter
management systems, and mobile devices, for example smartphones, to promote
efficiency and remain connected with clients.
• Speed and Agility: In part due to the recent technological advances mentioned above,
clients increasingly expect fast response times from in-house counsel. Thus, a first
general counsel should be prepared to utilize technology to streamline communication
with clients and improve legal department work processes.
• Ability to Provide Strategic and Proactive Advice: Clients often further expect in-house
counsel to take a proactive role in advising the company’s strategic initiatives and
future business plans. As such, it is important to have a well-defined understanding of
the role and responsibilities of the legal department and how those responsibilities
relate to the company’s business operations and larger strategic plan. Sections III (D) &
(E) below provide more detail on learning about company strategy and integrating the
legal department’s mission with that strategy.
• Risk Management and Controls: In light of increased regulatory scrutiny over the last
decade, illustrated by the Sarbanes-Oxley and Dodd-Frank Acts, clients also expect their

general counsel to proactively manage risk and to act as the company’s “conscience” or
control function. In-house counsel are expected to identify a range of risks surrounding
company activity. They should be able to provide details about the attendant risk’s
impact and consequences as well suggestions for alternative approaches. For example,
an ACC member who is a senior vice president and general counsel at a company in the
insurance industry (hereinafter “Mr. John Smith”10), said the company chose to hire in-
house counsel largely because senior management felt it needed someone internally to
manage risks.11 As such, Mr. Smith was initially expected to identify and manage the
company’s risks by developing internal control policies.12 This risk management
expectation requires a general counsel to be aware of company obligations, especially
regarding financial reporting, and to recognize and know how to address and report
improper conduct.
It is important for a first general counsel to be prepared to meet these general expectations so they
can immediately add value for their company.
2. Understanding Company-Specific Expectations

In addition to trying to meet the above general expectations, a first GC should ask the company the
following questions to clarify company-specific expectations and lay the groundwork for
establishing a successful legal department:
• Does the Company Want a Leader, a Manager, or Both? Leadership and management
are different roles requiring different attributes and skills. An individual with
leadership capabilities might provide a vision for the legal function. Leadership will
ensure that the company focuses on the right priorities and often shows the rest of the
organization the “bigger picture” while not being involved in the daily details. A
manager, on the other hand, will ensure that things are done in the right way, the
organization is structured properly, and the requisite systems and procedures are in
place. Typically, the manager is focused on overseeing the process, which often
involves a high level of detail and frequent communication with the staff involved. The
GC may be expected to fill both of these roles, serving in some aspects as a leader and in
some aspects as a manager. Balancing these different expectations can be difficult but
with the proper preparation and organization it can be done.
• Will the In-House Counsel’s Primary Responsibilities Be Strategic or Transactional?

A transactional lawyer helps ensure that legal work will be performed properly and in a
cost-effective manner. A good transactional lawyer, however, might not think or act
strategically. If the company is growing, the legal function will need to develop a
strategic plan to grow with it, which may require a lawyer who is more comfortable
with a strategic role.
• Does the Company Have an Immediate Legal Concern or Is It Focused on the Legal
Function’s General Development? A new general counsel should ask his or her
company if it expects to undertake any initiatives that will immediately require

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significant legal services. This can help determine which legal tasks will be a priority up
front and how much time a first general counsel will need to initially devote to urgent
legal issues as opposed to actively developing the law department. For example,
Nicolas Vanasse, the first general counsel at Aveos Fleet Performance, Inc., was hired
when Aveos was in the process of being purchased by another company.13 As such, the
company expected Mr. Vanasse to devote significant time to managing that transaction,
which forced him to initially divert energy away from developing the company’s law
department.14
• Will In-House Counsel Have an Upward Focus on Executive Management and the
Board of Directors, a Focus on Managing the Legal Function, or Both? Acting as the
company’s primary legal practitioner and chief advisor to the CEO and the Board of
Directors may require a different set of skills and priorities than acting as the legal
manager and architect of the in-house function. For this reason, it is important to clarify
which of these roles the company wants its first general counsel to fill.
• What are the Company’s “Cultural” Expectations for the New In-House Counsel? It is
important for a new general counsel to be able to smoothly adjust to a new company’s
corporate culture. It is particularly important to determine what it takes to thrive,
versus just do well, in the company. Considerations include such things as the
company’s actual primary hours of doing business (i.e., what are the hours most
employees work rather than what hours are “technically” the company’s operating
hours), are employees expected to respond to work matters after hours, is working from
home an accepted practice, is there a collegial environment, etc. Defining early on the
type of person who is typically successful in the company’s culture can help ensure a
smooth transition. For a further discussion of this topic, see Section III.B, “Understand
Company Culture.”
• What is the Company’s Risk Tolerance? All business entails risk, and it is important to
determine how much risk the company typically assumes in its deals and how in-house
counsel will be expected to manage that risk. As is discussed in greater detail in Section
V(B) of this InfoPAK, a GC’s grasp of how much risk a company is willing to absorb is
critical to not only the GC’s specific decisions involving risk for the company, but also to
the GC’s overall approach to decision-making on behalf of the client-company.
• What Key Business Challenges is the Company Facing and What Type of Law Will
In-House Counsel Focus On? A first general counsel should learn about their
company’s current industries, as well as any possible future growth strategies of the
company. Furthermore, the GC must know what special expertise these initiatives will
require. For example, they should determine whether the company plans to go public,
wants to maximizing intellectual property assets or increase shareholder value. In such
cases, the GC will need to ensure that they are knowledgeable in corporate law
(including IPOs) and be prepared for commonly occurring challenges in these areas.
• How Much Independence Will In-House Counsel Have? Many companies that are
creating a law department for the first time do not know exactly what to expect nor
understand every role that a new general counsel can fill. The company often has very
vague ideas of the in-house counsel’s function or may expect the new in-house counsel

to be proactive in defining his or her own role. Thus, a new general counsel should
determine how much independence they will have in defining their own role and
responsibilities, and can also take a proactive role in managing the client’s expectations,
as discussed in the next Section below.
3. Managing Expectations
When a company makes the decision to hire its first in-house counsel, the company is typically
eagerly awaiting to see what the in-house counsel can deliver. However, this anticipation is also
commonly fraught with challenges for the new in-house attorney, as the GC must be prepared to
manage client expectations. A new general counsel often faces misperceptions about their role
and/or encounters unrealistic expectations. This Section of the InfoPAK discusses some of the
more common client misperceptions of in-house counsel and provides guidelines for GCs on how
to manage expectations and help correct these misperceptions.
a. Common Client Misperceptions
Corporate clients who have not previously had in-house legal counsel may have limited
experience working with attorneys and may not initially understand a general counsel’s role. This
lack of familiarity may cause a first general counsel to face a variety of client misperceptions. The
following is a list of some of the most common misperceptions that an in-house attorney may
encounter as the first general counsel for her company:
• Company employees may not understand who qualifies as the general counsel’s
corporate client (e.g., even though in-house counsel only represents the company itself,
senior management, directors, and staff members may believe that a general counsel can
and/or should also give them personal legal advice).15
• Clients may assume that in-house counsel should only be consulted regarding strictly
legal matters, and might initially exclude a general counsel from anything they perceive
as a business decision.16
• Clients may perceive the legal department as a bottleneck that creates unnecessary
hurdles for business operations, which may foster a reluctance to consult in-house
counsel.17
• Clients may expect that all attorneys embody the caustic and abrasive stereotype often
associated with litigators on television, and thus, may initially avoid interacting with in-
house counsel or take a hostile approach towards the GC.18
• Clients may believe that a general counsel will know all areas of the law with equal
proficiency and if the GC does not, the client thinks the GC is deficient and/or lacking
in his/her experience or education.19
• Related to the client misconception that the GC represents the employees individually/
personally (rather than only representing the company), clients may misunderstand the

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concept of attorney-client privilege and think that every conversation between them and
in-house counsel is protected.20
b. Addressing Misperceptions and Harmonizing Expectations
The common misperceptions listed above can lead clients either to expect a first general counsel to
perform tasks that are outside the scope of their duties, or to avoid consulting the law department.
Both of these reactions undermine the effectiveness of in-house counsel, and thus it is imperative
for a company’s first general counsel to work from day one to manage client expectations.
The following is a list of tips on how a first general counsel can address and correct client
misperceptions and help harmonize expectations:
• “Communicate, communicate, communicate,” said Mr. Smith.21 He suggested being

very transparent and taking time to talk to clients to set up their expectations, even if
that initially requires taking time away from addressing current issues.22 “Setting up
those expectations and teaching your clients how to be clients is worth your effort,” he
said.23
• As soon as possible, work with company management to define expectations for the
general counsel and establish procedures for how those expectations may change over
time.24
• Explain to clients the limitations on a general counsel’s role (e.g., explain who qualifies
as the corporate clients through presentations at staff meetings or training materials).25

Practice Highlight
Craig Long, General Counsel at Capital Financial Services Corporation, faced an example of
a client’s unrealistic expectations shortly after becoming the company’s first general
counsel. Early on, he was asked to help a board member with a personal legal issue related
to a private real estate project. The company expected that Mr. Long would be able to
provide advice, but he had to refuse and refer them to his state’s Rules of Professional
Conduct, which said he could not provide legal advice to individuals privately and that he
had to represent only the company itself. Mr. Long said he was careful to be very tactful in
explaining these limitations on his role and had to educate the company on the rules. He
suggested that a company’s first general counsel work to define the scope of their duties
up-front to avoid scenarios like the one he faced.26
• Foster client ideas rather than quashing them, to encourage clients to continue
consulting the legal department.
• Establish an “open-door” policy, so clients are not hesitant to consult the law
department and to dispel any stereotypes about attorney attitudes.27
• Demonstrate interest in the business side of the organization to encourage clients to

include the general counsel during business discussions before legal issues arise.28
• Market and publicize legal department services (e.g., contract review or compliance
training) to clients and explain how these services help the company. These efforts can
be supplemented by developing written company policies that make it clear when
clients should consult the law department.29 For a full discussion of marketing the law
department, see Section IV(B), below.
• Avoid appearing too risk averse, so you can be more engaged with the business, and
make it clear that the legal department is attempting to help the company rather than
creating hurdles to business operations.30
• Educate clients on common legal issues involved in common practices such as contract
review, attorney-client privilege, and document retention so they understand the basis
behind law department policies.31

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Practice Highlight
Nicolas Vanasse, Vice President, Chief Legal Officer and Corporate Secretary at Aveos Fleet
Performance Inc., said that he tries to train business people in his company on basic
contract issues so they understand the reality of the problem and why the legal department
advises them a certain way. For example, he has made a point to explain to clients why
contracts need things like indemnification caps (i.e., to avoid bankrupting the company).32
Following the steps above will help a first general counsel manage their clients’ expectations and
will build greater confidence in the law department as a whole.
B. What Can a First General Counsel Offer?

Once a first general counsel understands company expectations, they must determine how to best
meet those expectations. This requires an understanding of how in-house counsel can best benefit
the company, and perhaps more importantly, how the GC can demonstrate the value of such
benefits to company management. This Section identifies the key roles upon which a first general
counsel should focus, and then illustrates how to quantify the benefits of these roles in order to
demonstrate the law department’s value.
1. Key Roles of In-House Counsel

In order to benefit the company, some of the most important roles and responsibilities that a first
general counsel should focus upon include:33
• Developing Intimate Knowledge of the Company: A first general counsel is in a

position to learn more about a company’s business than any outside lawyer, so the GC
should seize this opportunity. In-house counsel can also take time to meet and get to
know the company’s employees and executives. In this way, a first general counsel can
bring added value by learning about the company’s culture, values, needs, and history.
This knowledge will provide an in-house attorney with a context for providing the
company with improved legal services.
• Reducing Overall Legal Expenses: Performing legal services in-house can also be an
effective cost-saving measure for a company. In-house counsel can typically perform
the same work as outside counsel at a cheaper cost. Thus, a first general counsel can
benefit their company by strategically performing tasks in-house and occasionally
avoiding the cost of outside counsel. For more discussion on reducing legal expenses
and extracting value from the use of outside counsel, see the InfoPAKs: “ACC Value
Challenge Practices for the Small Law Department” and “Managing Value-Based
Relationships with Outside Counsel.”34

• Serving as a Trusted Advisor: In-house counsel, by virtue of their broad range of

knowledge of their company and its specific legal issues, are well positioned to be
trusted advisors to senior management. To this end, in-house counsel can provide
useful services in corporate planning, strategic decision-making, and accounting. A first
general counsel is well situated to provide these services while considering the
corporate bottom–line and developing a relationship of trust with management.
• Developing Corporate Compliance Programs: In-house counsel can further benefit a

company by developing internal programs to ensure the company is in compliance with
all applicable regulations and follows appropriate procedures in areas like employment
and financial reporting. Effective compliance training can help a corporate client reduce
the risk of criminal and civil liability. As such, a first general counsel can bring
significant benefits to the company by creating compliance programs and regularly
educating company employees about the demands of such programs.35 Some examples
of topics a GC may cover are sexual harassment, contract management, compliance,
appropriate workplace communications and dialogue.
• Improving Corporate Governance: In-house counsel can particularly help their

company by advising senior management on matters relating to corporate structure,
including the appropriate structure of a board of directors and the liability issues related
to board membership. A general counsel is uniquely equipped to provide advice on
such matters because, unlike outside attorneys, they can observe current corporate
procedures and understands company goals.36 After a first general counsel learns about
their company’s preexisting corporate governance structure and develops strong
relationships with senior management, they should consider suggesting improvements
to these corporate procedures.
• Minimizing Legal Risks: In-house counsel can benefit a company by identifying

potential risks and taking steps to protect the company from legal liabilities. Risks arise
from the impact of uncertain events, the nature of which will vary significantly for each
company and industry. Consequently, a first general counsel can bring value by
understanding the particular risks faced by their company and taking proactive steps to
prevent the risks from becoming a problem in the long run.
• Crisis Prevention and Management: By virtue of their extensive understanding of a

corporation’s structure and their access to information, in-house counsel are in a better
position than outside counsel to anticipate and prevent corporate crises. Additionally, if
an issue does arise, a general counsel is on hand immediately to respond quickly and
resolve any problems before they escalate into a crisis.37
• Codifying Company Policies and Creating Knowledge Capital: In-house counsel’s

intimate corporate knowledge also puts them in a position to develop written company
policies on issues such as records retention, contract review, and human resources
procedures. The creation of centralized policies can reduce company liability, improve
the organization of company activities, and help codify corporate knowledge.
• Developing the In-House Law Department: A company’s first general counsel will be
required to develop a company legal function from scratch. This may require

17
establishing administrative support, implementing technology, improving office

facilities, hiring new staff, or utilizing resources from the company’s existing business
function as support functions for the legal department. Thus, a new general counsel
must be prepared to manage the legal function and address any related logistical
challenges. This process is discussed in detail in Section VI, below.
• Managing Outside Counsel: Due to their broad understanding of the company’s

business and legal position, in-house counsel have a unique perspective and can better
grasp the “big picture” and effectively mange the partnership with outside counsel. A
new general counsel should be prepared to select, manage, evaluate, and control the
costs of outside counsel as needed.38
2. Quantifying Benefits and Demonstrating Law Department Value

While the addition of in-house counsel can significantly benefit a company, it is often very difficult
to quantify and demonstrate the value of these benefits. This is because many of the benefits
derived from the GC’s roles (described above) are intangible, which means proving their value to
the company may require the use of estimates and assumptions based on benchmarking data. This
section provides some tips to help a first general counsel try to quantify law department cost
savings and estimate the value of some of a first general counsel’s more intangible benefits.
The simplest metric that a first GC can use to demonstrate the law department’s value involves
calculating the hourly cost of performing work in-house in order to compare this cost to outside
counsel hourly billing rates. ACC’s Value Challenge Tool Kit Resource, “Demonstrating the Law
Department’s Value: Calculating In-house Counsel Costs,” provides a template to use and a
description of the required calculations necessary for determining this metric.39 In general, this
metric calculates total law department employee expenses (including adjustments for the costs of
salaries, benefits, and facilities expenses) and divides by the total number of law department hours
worked. The resulting metric will provide a number for the hourly cost of performing work in-
house, which can be compared to the hourly rates charged by outside counsel. This comparison
can demonstrate to company management the amount of money that is saved by performing work
in-house.
While lowering costs for the company can be demonstrated because it is quantifiable, it is much
more difficult to quantify the value of more intangible benefits like in-house counsel’s knowledge
of the business and preventive legal efforts. For example, the ability to prevent a lawsuit is far
more cost-effective than having to litigate a claim, settling, or worse—losing a case. However,
determining exactly how costly the litigation would have been is extremely difficult. Estimating
the cost based upon various factors (such as the type of matter/lawsuit, jurisdiction, parties
involved, amount in controversy, etc.) and using historical data/information can provide some
indicators of the value the GC achieved through this preventative approach. Diagram II below
provides estimates on the value added from these more intangible benefits:

Diagram II: Value of In-house Counsel40
Benefits of In-house Counsel Added Value
Knowledge of the business 20% to 25%
Lower legal costs Most often 20% to 30% lower
Early intervention / preventative legal efforts Conservatively 10% to 15%
In addition to using value estimates like the ones above, a first general counsel can demonstrate
law department value in the following ways:
• In highly regulated industries (or for companies subject to regulations like the Sarbanes-
Oxley and Dodd Frank Acts), in-house counsel can demonstrate value through the
development of corporate compliance programs that clearly meet the requirements of
such relevant regulations.41
• In cases where litigation was avoided or settled, in-house counsel should explain to
management that the costs of trial were avoided.42 The value of these cost–savings can
be estimated by looking at the historical costs of similar litigation.
• In-house counsel can also demonstrate value to management by keeping track of any
tangible work product created by the law department (such as written company
policies, employee training materials, or memoranda written to company management
that contain advice on legal or business matters). Work product like this is particularly
useful at demonstrating value if it was created in response to specific company
expectations.43 Further, where a company has a number of departments that are
making different, segmented (uncoordinated) requests of the GC, it is imperative that
the GC track these various assignments and provide one comprehensive list of the tasks
the GC has completed for every department to see. Particularly in larger companies or
ones with multiple office locations, the various departments often have no knowledge of
the other departments’ assignments and matters that the GC is handling, therefore part
of the challenge for the GC is simply informing the different departments and educating
them on the GC’s various responsibilities at any given time.
• The law department’s value and success can be further demonstrated through setting
clear goals (i.e., through a Mission Statement or Strategic Plan) and then periodically
documenting affirmative steps taken towards accomplishing those goals.44
• A first general counsel can also demonstrate value by creating and distributing client
satisfaction surveys to evaluate law department performance. Even though satisfaction
surveys rely upon subjective measures, they should be designed to use a quantitative
scale (e.g., scoring on a numerical scale) so that results can be benchmarked and

19
compared to demonstrate department improvement.45 The use of client satisfaction

surveys is discussed in more detail in Section IV(F) below.
• Another way to demonstrate law department value is through extensive use of metrics.
By comparing metrics over time, a GC can demonstrate improvements in law
department performance and cost savings. The following are some metrics that can
help demonstrate value:
• Reduction in litigation / lawsuits filed against the company;

• Reduction in regulatory investigations, violations, or sanctions;
• Reduction in internal ethics and compliance issues or complaints;
• Improved turnaround time for law department processes (e.g., faster contract
review);
• Improved terms (e.g., reduced liability or better prices) in vendor contracts; and
• Improved staff retention rates.
For more details on how to implement and utilize metrics like those above, please see ACC’s
Leading Practices Profile, “Legal Department Leading Practices for Adding Value and Moving
Beyond the Cost Center Model.”46
Therefore, from the outset it is critical that the GC be cognizant of the importance of demonstrating
the new law department’s value and should be prepared to collect data to create their own
company-specific metrics and estimates similar to those addressed above. In addition, it is
advisable for a first general counsel to attempt to demonstrate value early on by addressing some
smaller (and easily measurable) issues up–front that are likely to deliver early and noticeable
successes before working on larger, more difficult issues.47 The details and specific responsibilities
in serving the role as the first GC are discussed fully in Section III of this InfoPAK, “Getting Started
As the First General Counsel.”
C. Law Firm Partner v. General Counsel: How Are They Different?

Many first general counsel have extensive prior experience working in the private sector at a law
firm. Thus, it is important to note that there are substantial differences between the partners’ role
in a law firm and the role of in-house counsel in a corporation. Diagram III below details the
different requirements and features of these two roles.

Diagram III: What’s Different?
Law Firm Partner General Counsel

Have a business sense Have a thorough understanding of the industry
and business
Manage lawyers and staff on a transactional, Be both a corporate leader and manager of
case-by-case, matter-by-matter basis executives, other lawyers, staff and outside
counsel
Compete with other outside counsel Manage outside counsel
Define own behavioral norms based on power Conform to corporate culture, norms, and
and prestige in the law firm behavior
Know legal specialty extraordinarily well Recognize and anticipate a wide, and broad,
variety of legal issues
Establish and meet personal annual billable Establish and manage annual legal budgets
hour and fee goals
Ensure that promotion and marketing goals Ensure that clients understand how to obtain legal
and objectives are accomplished, resulting in services and that client needs are being met
accomplishment of fee goals and objectives
Total hours worked will be in the 2,500 to 3,000 Hours will be approximately the same as a
range and are dictated by client needs partner in a law firm, but a GC will allocate them
quite differently between managing and
performing legal work
Compensated based on fee production and Compensated based on corporate compensation
work origination and retention of clients philosophy including salary, bonus, and deferred
compensation / stock options; compensation
package is usually dependent on overall corporate
performance
Law firms are more horizontal, where partners The corporate world tends to be more vertical and
are ostensibly peers “siloed” than a law firm; i.e., in a company,
command-and-control exists far more than in a
law firm
Practice is more independent and solo Practice requires teamwork with other attorneys
and corporate clients
Support is provided from a preexisting Less infrastructure exists to support a legal
administrative and technology infrastructure function and a GC may be required to be more
self-sufficient regarding administrative tasks and
technology solutions.48


21
There are also a number of different skills that may not be expected of a law firm partner, but
which are beneficial to general counsel. The following is a list of attributes that may be more
important once an attorney enters in-house practice:
• Financial Acumen: The world of business moves on financial analysis and discounted
cash flows, which may require different knowledge than that held by a law firm partner.
• Presentation Skills: General counsel need better presentation skills than private or
outside attorneys. They need to learn how to quickly synthesize and simplify legal
points, especially for Board of Director presentations.
• Decision Making: Compared to a law firm partner, a first general counsel may act more
like a principal (rather than an agent or advisor) and will be responsible for a greater
degree of decision making.
• Chemistry with the CEO: The GC’s welfare usually depends upon his/her crucial
relationship with the CEO.
III. Getting Started as the First General Counsel

Once a first general counsel understands the basic responsibilities and expectations of an in-house
counsel, there are a number of steps they should take immediately upon joining the company (or,
in some cases, before beginning employment). This Section discusses the initial steps that a
company’s first general counsel should take to prepare for their new role. These steps include
defining expectations (e.g., through an employment agreement), understanding the company’s
culture, developing knowledge of the company’s business operations and overall industry,
establishing reporting relationships, promulgating a law department mission statement, and
creating a timeline of first year priorities.
A. Codify Expectations
When beginning as a company’s first general counsel, it is important to be able to document the
general responsibilities and main duties of the position. Any written agreement regarding
responsibilities should be informed by the discussion on expectations described in Section II(A)
above. This process of codifying expectations is primarily the responsibility of the incoming
general counsel, who should push for the creation of the following documents:
• Employment Agreement: Often, a formal employment agreement will contain only

terms that would apply to a senior employee, such as terms of compensation, non-
compete and confidentiality provisions, etc. A first general counsel can ask, however,
that their employment agreement also specify some aspects of the work that they will be
expected to perform.

• Position Description: Position descriptions will vary greatly based on the unique
aspects of each position; however, this document should define at least the scope of the
general counsel’s responsibilities. In a brand new position, the description of what
should be done may be very broad, especially if the company is growing and rapidly
changing. Section IX includes some examples of actual position descriptions for general
counsel.
• Memorandum of Understanding: The exact details of the new position, which the
employment agreement likely will not address and the position description will cover
only at a high level, can be explained in an additional document. That document may
be in the form of a memorandum of understanding from the CEO or a letter.49 This
document can spell–out in greater specificity the details of a first general counsel’s
duties and responsibilities.
Practice Highlight:
Craig Long, General Counsel for Capital Financial Services Corporation, said he worked
carefully with his company to define his role up front when he was hired as their first
general counsel. However, because it was the company’s first time employing an in-house
attorney, a large portion of the roles/responsibilities that they discussed and anticipated for
him in his role as the GC did not match the reality of what he does today. He said that
codifying his role has been an ongoing learning process because he has ultimately been
useful in some other areas that they did not think to even discuss during their initial
employment discussions. Even after almost five years with the company, Mr. Long finds
his role is constantly evolving and is especially contingent upon the market and current
events; for example, the recent economic downturn has shifted his work away from
mortgage issues to more debtor/creditor work.50
As the experiences detailed in the above Practice Highlight illustrate, it is also important for a first
general counsel to be aware that their role will likely evolve over time as the exact utility of the
new law department becomes clearer. Thus, a first general counsel should ensure that any
agreements with the company regarding the details of the GC position are sufficiently flexible and
permit ongoing discussion and reevaluation of the in-house counsel’s responsibilities. This
flexible, and even adaptable, approach helps to manage expectations and avoid confusion or
tension if circumstances change.
B. Understand Company Culture

It is important for a company’s first general counsel to understand that each company has its own
corporate culture and proverbial personality. “Corporate culture” refers to a company’s general

23
attitude, which often reflects the mindset of a company’s upper management and serves as a
common premise that defines how things are done and what is valued. 51
Understanding a company’s corporate culture is critical to ensuring that in-house counsel provide
advice that is pragmatic, effective, and implemented by the client. Taking into consideration the
atmosphere in which advice is heard is often as important as ensuring that the advice is legally
correct.52 Otherwise, a client may not take a general counsel’s advice seriously and the general
counsel may be viewed as irrelevant.
Thus, a first general counsel should prepare for their new role by considering the cultural issues
the GC might face and the overall cultural context within which they must operate. This process
should begin with talking to members of senior management to determine their goals,
management styles, and how top management works with each other. These discussions can help
a general counsel understand whether the company’s organizational structure is rigid and highly
monitored by senior staff or whether management takes a more “hands-off” approach. A first
general counsel should be prepared to adapt to its company’s business techniques and approaches.
Practice Highlight:
Maria Pasquale, Chief Counsel at Celgene Corporation, emphasized the importance for a
company’s first general counsel to understand the structure and culture of the company as
it relates to client legal needs. In her experience, such an understanding requires an
assessment of organization size, geography of the organization, the priorities of top
managers, potential risks that seem significant for the organization, and risks that do not
seem as significant but must nevertheless be communicated to management by legal
counsel.53
A general counsel’s first few weeks will set the tone for how well the GC (or legal department)
interact with the rest of the organization.54 In order to set the correct tone, it is vital for the new GC
to quickly understand how information flows through the company and to connect with office
staff.55 The sooner a first general counsel understands how things work, the sooner they will show
their value and be seen as an ally.56 Additionally, because a first general counsel may initially face
apprehension from clients regarding their role, they may need to employ interpersonal skills to
connect with clients and surmount their preconceived notions. For some, the key to connecting
with clients may be humor or a shared interest in sports or other activities.57
C. Learn About Your Company’s Business Operations

Intimate knowledge of a company’s business and operations is a critical component of an in-house
counsel’s success. Thus, a company’s first general counsel should undertake significant efforts to
learn about that company’s business. A new general counsel should strive to be thoroughly
familiar with the company’s operations, financial results, and objectives. One of the best ways to

help build client confidence is to think like a businessperson, not like a lawyer concerned only with
legal rights and liabilities; act like a member of the management team, not like a legal technician.
This Section details a variety of methods that a new general counsel can employ to obtain an
effective general grasp of the client–company’s business.
1. Observe the Operations

A simple way to learn what actually goes on at a company is to visit and walk through the various
centers of corporate activity, beginning with a complete tour of the first general counsel’s own
office.58 Additionally, if the company is engaged in other operations such as manufacturing or
assembly and it is possible to visit those sites, do so. A tremendous amount of insight can be
gained from simply touring various corporate facilities, speaking to personnel, and observing first-
hand the company’s operations.59
2. Talk to Managers and Department Heads

A new general counsel can also benefit from talking with various business unit leaders within the
company.60 Getting to know colleagues around the company is one of the most important things
to do when first starting out according to Maria Pasquale, who is Chief Counsel (and the first
general counsel) at Celgene Corporation.61 Ms. Pasquale particularly stressed the importance of
talking to various department heads in order to understand their goals and legal needs.62
When meeting with business unit leaders, a first general counsel should try to learn the answers to
the following questions:
• What does each business unit do and how does that function relate to the company’s
overall operations?
• What would each business unit like to see in terms of legal support?
• Are there any immediate issues or problems that the business units would like to have
addressed?
• What issues are already being worked on?
• Are there any issues or problems on the horizon that the law department should be
aware of?
Talking with managers and asking these questions can help a first general counsel manage
expectations and avoid being surprised by ongoing issues or problems later on.
A new general counsel should also make an effort to speak with the accounting and audit staff to
discuss whether there are any significant accounting or tax issues that are relevant to the company,
its business operations, or the industry in general.

25
3. Look Through Files

As the first GC, one should also take time to review relevant files or records that the company has
maintained. Ms. Pasquale suggests that the GC obtain and read as many company materials as
possible.63 In particular, if there is any existing paperwork regarding the company’s prior legal
issues, a new general counsel should be certain to review that information. Looking through
existing legal paperwork will not only clarify the actual legal issues that the company has faced in
the past, but it may also facilitate outside counsel management by indicating which outside law
firms have assisted the company in the past.
4. Identify the Most Influential Company Executives

Another important task is identifying which employees at the company carry the most influence
and political power. A new general counsel can benefit from identifying these “power brokers”
and learning how they are politically aligned within the company. Nicolas Vanasse, the first
general counsel at Aveos Fleet Performance Inc., suggested that a first general counsel begin by
identifying and getting to know corporate and operational decision–makers.64 Admittedly, this
process will likely take time. Informal discussion with clients and organizational charts are an
excellent place to start to discern the basic political make-up of the company. A new general
counsel should quickly obtain and study these charts for each division or department in the
company. These charts will most often be maintained by the company’s human resources
department.
5. Read Corporate Documents and Public Filings

Some of the best sources of information regarding a new general counsel’s company are the very
internal documents they will eventually be asked to write and review. A new general counsel
should initially dedicate many hours to reading the documents listed below, to the extent they are
applicable to their company.65 It is also advisable to read these documents before starting as a
company’s first general counsel in order to be ready to hit the ground running. Also, any questions
that arise regarding the documents can serve as the basis for introductory meetings with the
important people who can answer those questions. In particular, be sure to review the following
documents:66
• Articles of incorporation and any amendments;
• Audit-committee charter;
• By-laws and amendments;
• The company’s last few 10-K, 10-Q, and 8-K reports;
• S-1 registration statement (if the company did an IPO within the past few years);
• Description of the business and of risk factors in the above documents;

• Employment contracts, stock-option agreements, and change-of-control agreements for

key executives;
• Last few proxy statements;
• Exhibits to their SEC filings (also determine if they are up-to-date);
• Press releases from the last year or so, which should be available from news outlets or
the company’s website;
• Legal-matters responses to the auditors in the last couple of audits;
• Pension plans;
• Stock-option plans; and
• Separation agreements for recently-departed executives.
D. Learn About Your Company’s Industry, Market, and Strategy

It is also essential for a new general counsel to understand their company’s industry and how the
company fits strategically within its market situation.67 Similar to learning about the company’s
business operations, this step is important because it allows an in-house attorney to serve the
company from a business perspective and take a more active role within the management team.
This knowledge will also increase a new general counsel’s credibility among business unit leaders
and will encourage such leaders to consult the law department more frequently.
This Section details a number of ways in which a new general counsel can learn more about a
company’s industry, market, and strategic alignment. The subsections below follow and expand
upon the “Business Knowledge Pyramid” laid out in Diagram IV below, which illustrates the key
layers of knowledge a new general counsel must obtain regarding her client’s industry, market,
and strategy. The pyramid begins with broader knowledge at its base (industry and competitor
knowledge) and becomes more specific at the top (knowledge of company and business–unit
strategy).

27
Diagram IV: Business Knowledge Pyramid
Business Knowledge
Pyramid
Business Unit
Strategy & Direction
Company Strategy
& Direction
Competitor Knowledge
Industry Knowledge
1. Industry Knowledge
As in-house counsel, it is critical to understand the nature of the client–company’s industry.
Nicolas Vanasse, the first general counsel at Aveos Fleet Performance Inc., in reflecting upon the
skills required of a first GC, succinctly stated, “knowing the industry of your client is
paramount.”68 Indeed, the ability for an in-house lawyer to learn about the client’s business and
industry is one of the essentials benefits of in-house counsel.69 Thus, learning about their
company’s industry is a good way for a first general counsel to begin to better understand the
company’s legal needs and to provide greater value.70
There are a number of ways in which a first general counsel can learn more about a new client’s
industry, including:
• Reading industry trade magazines, newsletters, and other periodicals;71
• Signing–up for industry news alerts through services like ACC’s Newsstand72 or law
firm blogs;73
• Joining and participating in relevant trade organizations;74
• Attending trade conferences;75

• Interacting with colleagues from other companies in the industry, either online (e.g.,
through ACC’s eGroups76) or in person by attending networking events;77
• Reading financial analysts’ reports, corporate biographies of related companies, and

industry material prepared internally;
• Meeting with knowledgeable business executives within the company;78 and
• Discussing industry matters with colleagues from outside law firms.79
When researching the industry and consulting the above sources, a new general counsel should
particularly look for answers to the following questions:
• Who are the industry’s major competitors?
• What are the industry’s fundamental business strategies?
• What are the major threats to the industry?
• What is the regulatory environment?
• What are the strategic legal issues facing the industry?
• In which areas do I (the GC) need to acquire more information or gain more experience?
The first general counsel should try to utilize the above resources and suggestions as quickly as
possible upon starting employment at the new company, and should continue to stay abreast of
industry events throughout their tenure.
2. Competitor Knowledge
A first general counsel should also learn as much as possible about the company’s key competitors.
Knowledge about competitors, their key staff, the legal issues they have faced, and how they have
responded to such legal issues can help a new general counsel better anticipate and address their
own company’s legal issues. In addition, developing relationships with the chief legal officers
(“CLOs”) at competitor companies enhances a general counsel’s credibility both within and
outside of the client corporation. Networking with and getting to know these other in-house
counsel can also be an invaluable tool for learning more about the industry (as discussed in Section
III(D)(1) above).
In particular, a first general counsel should consider the following questions:
• What are the major legal issues facing competitors?

29
• How have competitors responded to major legal issues? Have they implemented any
specific policies, compliance programs, litigation strategies, etc.?
• Who are competitors’ CLOs? Is it possible to meet with these other in-house attorneys
and get to know them personally?80
• Is competitor law department benchmarking information available?81
• Does your client company participate in any industry trade associations that might
compile information on competitors and other large industry participants?
• Does an industry group exist for CLOs? When and how often does it meet? Does the
group provide opportunities to network with other CLOs?
A first general counsel can research the answers to these questions using many of the same sources
listed in Section III(D)(1) above (e.g., reading industry periodicals, talking to company colleagues,
attending trade conferences, reading competitor’s websites and public filings, etc.). Moreover,
ACC provides a variety of opportunities and resources geared directly to Chief Legal Officers. For
example, ACC offers:
• CLO ThinkTank Sessions: An opportunity for live interaction with fellow CLOs across
the country to engage in intimate roundtable discussions;
• CLO Chapter Networks: Networking and specialized groups offered at the local
(regional) ACC Chapter level, based upon your specific geographic location;
• CLO Executive Bulletin: An e-newsletter designed exclusively for CLOs.
• CLO Surveys: ACC conducts annual CLO surveys that capture current CLO thinking
and examine changes over time.
These CLO-specific offerings are excellent ways for a GC to indoctrinate himself in the legal and
business landscape of his/her client company, and to connect with colleagues who can provide the
new GC with a foundational understanding of the role and attendant responsibilities.
3. Company Strategy and Direction

A general counsel should be intimately involved with and aware of their corporation’s strategy
and direction. They should be able to succinctly articulate the company’s business strategy and be
able to explain it to others in the company.82 This knowledge is important because it will help
guide the GC in making difficult decisions on how to best support the business, and it will inform
the process of developing a law department mission statement (discussed in Section III(E),
below).83

Strategic planning is the process of defining a company’s direction and making decisions in order
to pursue a particular course of action. In particular, a first general counsel should be able to
answer the following questions about corporate strategy and direction:
• Does the company have a written Strategic Plan or Mission Statement that the general
counsel can review? If not, can top executives summarize the basic elements of
corporate strategy?
• Will the law department be involved in any future attempts to design (or redesign)
overall corporate strategy? If not, can the general counsel become more involved in this
process?
• Is the company using the law to advance the business?
• Is the law department’s mission and strategic plan aligned with the corporate mission
and plan? This aspect is discussed in detail in Section III(E) below.
By answering these questions, a first general counsel can better understand the strategic business
context for any future legal issues facing the company, which will improve her ability to provide
valuable legal services to her new client. Further, the Strategic Plan and attendant goals of the
company should inform the GC’s own decisions in assigning priorities, in work and expense
allocation, and ultimately, in what the GC determines to be the law departments’ goals. Without
the law department’s goals being aligned with the company’s goals and contributing to the
strategic plan, there will be discordance on the macro level and a disconnect on the micro level.
4. Business Unit Strategy and Direction

The highest level of the Business Knowledge Pyramid (Diagram IV) involves intimate knowledge
of the company’s various business units and their strategies. This will likely require direct
communication with business unit leaders and other business colleagues. The business unit-level
strategies are typically not as formalized as the overall corporate strategy, but discussions with
business colleagues should reveal the basic strategy for each unit’s operations.
A first general counsel should be able to answer the following questions about business unit
strategy and direction:
• What are the individual business unit strategies and objectives?
• Are there preventative law programs that would assist the business unit in achieving
their objectives, reducing costs, or managing legal risks?
• Do the business units understand who to contact when faced with legal issues?
• Do the business units understand the role of the law department?

31
• In the past, has the law department (or outside counsel) been contacted early enough to
address a legal issue before it becomes a major problem?
• Are there ways in which the business units can better integrate open and frequent
communication with the law department into their strategies?
Addressing these questions will help a first general counsel understand business unit goals. This
information can help the general counsel learn how to integrate business strategy into the new law
department and can help facilitate open communication between the general counsel and key
business colleagues.
E. Promulgate a Law Department Mission Statement

A company’s first general counsel should also be prepared to draft a law department mission
statement. A mission statement is a statement of the law department’s purpose of an organization.
It should serve as a guidepost and provide the framework within which strategies are
formulated.84 It provides clients with a clear understanding of the role and priorities of the law
department and can serve as a guide for subsequent law department activities.85 A mission
statement can also illustrate the ways in which the law department will contribute to the
company’s business operations, which helps demonstrate the general counsel’s value to the
company.86
In addition, the law department’s mission statement should align with the company’s overall
corporate strategy (see Section III(D)(3) above) and it should be developed with input from key
company executives.87 When drafting a mission statement, a first general counsel should also
consider:88
• The client’s needs and perceptions;
• The law department’s services and deliverables;
• The company’s competitive marketplace;
• Ways in which they can leverage the law department’s distinctive competencies; and
• The potential benefits to various company stakeholders (e.g., directors, business units,
senior management, employees, and regulators).

The final mission statement should then be documented and published to all members of the
company. A mission statement can be as simple as:
• The Legal Department’s mission is to efficiently and effectively administer the legal
affairs of the Company by internally providing professional, timely, and useful legal
advice and services, and by arranging and actively managing the services of outside
counsel as needed; to minimize liability exposure by recommending and implementing
appropriate policies, practices, and procedures; and to administer such legal affairs in
the most cost-efficient manner reasonable so as to contribute to the Companywide team
effort to maximize the Company’s return to its stockholders.89
Once the department’s mission is defined and communicated, it should be reviewed periodically
and examined to see if the general counsel and other members of the department are spending
time consistent with the stated mission. In addition, periodically documenting how the law
department is working to achieve its mission is a good way to demonstrate the department’s value
to the company (as discussed in Section II(B)(2) infra).
F. Establish Reporting Relationships

A first general counsel should address within the first month or two with the company the
essential reporting relationships within their new company. In fact, in a company that has never
had in-house counsel, the task of establishing or clarifying law department reporting relationships
may fall to the first general counsel. To assist with this process, this section analyzes the two
reporting relationships that are most important to a first general counsel: (1) to whom should the
general counsel report, and (2) who should report to the general counsel?
1. To Whom Does the General Counsel Report?

The general counsel’s reporting relationship is important because it indicates to other company
employees and outside counsel the relative importance and accountability of the law department.90
Thus, a company’s first general counsel should determine early on the individual to whom they
will report directly.
According to the ACC 2011 CLO Survey, general counsel’s reporting relationships are
predominantly aligned to report to the CEO, President, and/or the Board of Directors (collectively
comprising 81% of the respondents). The figure below illustrates the results:91

33
To whom do you report: More Senior CLO

3%
Other
COO CAO 4%
1%
CFO 3%
8%
CEO and BOD

7%
BOD
1%
President
CEO
10%
63%

Nearly three-fourths of responding general counsel (73%) indicated they report to their company’s
CEO or President.92 An additional 7% of respondents report to both their CEO and the Board of
Directors.93 A smaller number of general counsel report, instead, to the CFO or another C-suite
executive.94 According to Catherine Valentine, who served as the first general counsel for five
different companies, it is not uncommon for a general counsel of a smaller company to report to
the CFO.95 As a company grows, however, Ms. Valentine has found that the general counsel tends
to report to the CEO.96
Having the general counsel directly report to the top corporate officer (usually the CEO or
President) has two key advantages. First, it gives law department decisions more weight in the
eyes of other executives and outside counsel.97 Second, it gives the general counsel more authority
to audit and become involved with aspects of the company’s business planning.98 This increased
involvement, in turn, allows the general counsel to better anticipate and prevent legal issues.
It is generally considered less advisable for a general counsel to report to the head of a business
unit. Even though the business unit leaders may have driven the charge to hire in-house counsel
and participated heavily in the hiring process, in the long run it is more strategically important for
a general counsel to have the backing of the CEO in order to have influence over the legal affairs of
the entire company. ACC’s 2011 Census Report99 shows a significant increase reporting directly to
the CEO/Board of Directors. Seventy-three percent of respondents indicated that their
departments were housed in the corporate center, compared to 55 percent in the previous survey.
It is important that a first general counsel speak with the CEO (or equivalent executive manager) to
clarify their own reporting relationship in their new company early on. During this conversation,
a first general counsel might also suggest improvements to this reporting relationship based on the
data provided above.

2. Which Functions Report to the General Counsel?

A company’s first general counsel should also be careful to clarify which, if any, of the company’s
other functions and employees will report to the general counsel. To assist with this process, this
section describes the functions (or departments) within a company that most commonly report to
the law department.
Based upon the 2011 ACC In-House Census Report, compliance and the corporate secretary are the
functions that mostly commonly report directly to the general counsel (see Diagram V below).100
Thirty–seven percent (37%) of compliance departments and 36% of corporate secretary
departments report to their company’s general counsel.101 As a company’s revenue and number of
employees increase, so does the likelihood of that organization having both the compliance and
corporate secretary report to the general counsel.102 In addition, only 29% of respondents indicated
that no other departments reported to the general counsel.103
The following Diagram (Diagram V) illustrates the full responses regarding which functions
typically report to the general counsel.
Diagram V – What other departments report to the Office of the General Counsel? 104
Compliance 37%
Corporate Secretary 36%
Government Relations/Regulatory Affairs 21%
Risk Management/Insurance 14%
Privacy 12%
Human Resources 10%
Corporate Security 8%
Claims 7%
6%
Reporting Structure by Type of Organization
Internal Audit
4% Public Private Other
Public Relations
Compliance 49% 27% 24%
Facilities 3%
Corporate Secretary 56% 24% 21%
Information Technology 2% Govt Relations /
Reg Affairs 53% 25% 21%
Tax 2%
Procurement 1%
Other 9%
None 29%
0% 5% 10% 15% 20% 25% 30% 35% 40%


35
As the diagram indicates, a general counsel will likely have a number of employees outside their
department directly reporting to them. A first general counsel should also consider whether it
wants certain departments to provide informal, periodic reports to the law department, even if the
general counsel does not regularly supervise those departments. Such informal reporting can help
to ensure that the general counsel is apprised regularly of various departments’ key actions,
especially those that may involve legal liability. Employees often are not even aware that some of
their responsibilities, which they consider to be “routine” functions, actually involve legal issues
that should be handled or reviewed by the legal department. This misidentification of legal versus
non-legal matters is particularly common in organizations that have never had an in-house
attorney and thus, are accustomed to handling many “legal” tasks themselves (or completely
skipping the legal review process). A common example is when manager-level employees (who
usually have higher levels of authority and autonomy) enter into agreements with outside vendors
or service-providers through which they contractually obligate the company to various things, not
realizing the legal implications of their agreements.
Practice Highlight:
The experiences of Craig Long, who was first general counsel at Capital Financial
Services Corporation, illustrate the potential utility of informal reporting relationships
between the general counsel and key business colleagues. Capital Financial operates
multiple branch offices through which the company provides various financial and
credit services. Mr. Long asked each branch office manager to informally report to him
on any issues involving fraud or employment complaints. This requires branch
managers to report to Mr. Long whenever necessary on legal matters, even though he is
not their direct supervisor (in the sense that he does not conduct their performance
reviews, etc.).105
Finally, if there are any other employees in the law department, such as other attorneys, paralegals
or administrative staff, they should also report directly to the general counsel. In fact, as more
functions (and more people) report to the general counsel, the GC may need to increase the law
department’s staff and reorganize the department’s reporting relationships so that some
employees or business units report directly to other staff within the law department. Law
department development and expansion concerns are discussed in detail in Section VI(A) infra.
G. Creating Company Policies

A company that has never before had in-house counsel may be particularly ill-prepared with
regard to company policies. Without legal counsel, corporate processes may have developed
informally, haphazardly, and without consideration of potential legal liability. Thus, within the
first year, general counsel should work to develop written policy statements for the company, such
as a contract review policy, a corporate ethics and compliance policy, and a policy on retention of
outside counsel. General counsel should also consider promulgating a policy on when clients

should consult the legal department (please see Section IV(B) on Marketing the Law Department
for more information). The General Counsel can also use the process of preparing, drafting, and
distributing such policy statements as a way to reach out and learn from colleagues within the
company.
Some of the most common polices that pertain to the legal function include:
• Who can retain outside counsel and review their invoices?
• When must a lawyer review contracts and agreements?
• How can potential trademarks and patents be protected?
• What are the obligations under relevant statutes (e.g., the Foreign Corrupt Practices
Act)?
• Who must review terminations of employees?
• To whom should complaints and grievances be directed?
For example, Mr. Smith found that his company had not developed detailed internal policies,
partly because it is a private company and had not been forced to comply with public reporting
requirements.106 When asked what tasks he focused upon in the first year, Mr. Smith discussed
creating a variety of written policies, including an employee conduct policy, and social media and
technology policies.107
H. Suggested Timeline of Priorities for the First Year

This Section offers a general timeline, by quarter, for the top priorities that a company’s first
general counsel should address during its first year with the company. Even though
circumstances will differ for each new general counsel, Diagram XII below highlights some of the
central tasks that a general counsel should consider during its first year with the organization.

37
Diagram XII: First-Year Priorities
First Meet senior Start tracking Sign up for Talk to Review existing Evaluate and develop
Quarter clients and ongoing and industry outside client contracts the new law
evaluate their new legal periodicals, counsel the (both external department’s
legal needs and matters join trade company has and internal administrative and
108 111
expectations groups, and worked with agreements) technological
110
actively in the past infrastructure (e.g., a
112
network with contract database)
colleagues in
109
the industry
Second Establish key Continue Meet in-‐house Begin Become more

Quarter policies and developing colleagues gathering law involved with
common work key client from key department corporate
processes (e.g., relationships industry spending governance
code of ethics, and meeting competitors data issues and
contract review more internal develop board of
policy, records clients director policies
114
retention as needed
113
policy)
Third Present company Benchmark Manage client Meet as Roll out Develop and
Quarter management with the law expectations many non-‐ additional distribute an outside
summary of legal department’s for the role of management internal policies counsel management
117
activities thus far performance the law employees in (e.g., social policy
115
against data department each business media and
for other law unit as technology
116
departments possible policies)
Fourth Develop a written Start Develop Consider Conduct a client Evaluate the law
Quarter law department distributing employee purchasing satisfaction department’s first
mission FAQs and training and budget and survey for the year performance
118
statement legal guides compliance matter law and integrate
119 120
for clients programs management department feedback to develop
(preferably via software a plan to improve
an intranet during the next
121
system) year

The chart above should be used as tool for visualizing when some of the tasks discussed should be
done during the first year of tenure. It is important to keep in mind that not all of the tasks
outlined in this section were included in the chart because they did not fit within the quarterly
breakdown; nevertheless, these tasks are no less important, and they should be done within the
first year if possible.
IV. Building Client Relationships

A first general counsel should be certain to build strong relationships with their corporate clients.
This is true not only as they are starting out, but also throughout their career with the company.
This Section discusses various ways in which a first general counsel can build successful client
relationships—specifically, through open communication with clients, marketing the law
department, setting appropriate law department standards, and using surveys to measure and
improve client satisfaction.
A. Openly Communicate with Clients

All in-house lawyers, particularly a first general counsel, must understand the importance of
communicating with their corporate clients.122 As was discussed in the earlier sections of this
InfoPAK, to better serve the company, a general counsel must know the professional goals and
objectives of individual corporate clients. This knowledge requires open and regular
communication with the clients themselves.
Communication with business people is often different than communication with other lawyers or
litigators.123 When communicating with business colleagues, a first general counsel should be
careful to explain their decisions and legal arguments, avoid rejecting proposals, and try to
propose alternative solutions.124 Furthermore, a first general counsel will likely have to show
significant initiative when speaking with their clients, who will not be accustomed to discussing
matters with in-house counsel.125 This may be particularly surprising for attorneys who are used
to a private law firm setting, where reporting relationships and lines of communication are
typically hierarchically predetermined and thus require less initiative.126
Most clients will be happy to talk to the general counsel when they show an interest in their facet
of the business and in them personally. Only sincere interest and support will be effective in
building strong client relationships. When talking to clients, a first general counsel should be
creative in looking for ways to help the client succeed. This will encourage clients to treat the
general counsel as a confidant and allow the general counsel to be a better adviser.
One way for a first general counsel to promote open communication is to attend client staff
meetings. They should also periodically stop by client offices to discuss any current projects and
the potential legal implications thereof.127 These steps will help them learn the types of projects
and activities currently being planned by clients and will reinforce the perception of the general

39
counsel as part of the corporate team. A well-informed general counsel is also in a better position
to practice preventative law efforts.128
Additionally, a general counsel should openly communicate with clients during the delivery of
legal services. It is important to respond quickly to clients’ legal requests and to keep clients
updated during the law department’s review process.129 Furthermore, a first general counsel
should regularly talk to clients about important developments in case law and new legislation.
Some clients may also be interested in receiving copies of relevant articles or other timely
information about the company or the industry. Keeping such open lines of communication with
clients will make a first general counsel a better legal adviser to their client and will strengthen the
law department’s image.
B. Market the Law Department

Once a first general counsel has established open lines of communication, they can further bolster
client relationships by marketing the law department. This section details two ways the general
counsel can market their new department: educating clients on law department services and
conveying a compelling law department culture.
1. Introducing and Explaining Law Department Processes

In a company that has not previously had in-house counsel, it is important to promote law
department services and explain how they fit in with the overall business. Many corporate clients
will have to learn which matters to bring to the general counsel, when to bring them, and how to
prepare for the discussion. Thus, a first general counsel needs to educate them about each of these
steps. They will also need to show clients how to benefit from the law department and the range
of services it offers. In practice, much of this introduction and education will be achieved via open
communication and individual meetings with clients, as described in Section V(A) above.130
Another good method for communicating this information is through a written handbook for
clients on law department procedures, which is especially useful for larger
companies/organizations or ones with more than one office. A client handbook will help
publicize the law department and should explain how and when clients should contact the general
counsel.131 The handbook should also identify any instances when clients are authorized to take
legal actions without consulting the law department (e.g., when clients can enter into agreements
on behalf of the company and when they can contact outside counsel).132 Furthermore, the
handbook should include biographies and full contact information for each law department staff
member. Key law department procedures and policies can also be included in the corporate
bylaws to give them more weight.133

Practice Highlight:
Nicolas Vanasse, Vice President, Chief Legal Officer and Corporate Secretary at Aveos
Fleet Performance Inc., made a point early on to publicize his position throughout the
company. He did so by developing and distributing written law department
procedures (e.g., contract review procedures) that educated clients on which issues they
should discuss with Mr. Vanasse. Some of these procedures were also included in the
corporate bylaws so they could not be circumvented. He felt these procedures (and
resulting discussions with clients) made his clients realize that the law department was
there to help them.134
In addition, a first general counsel can introduce and market the law department by hosting
regular training sessions or seminars with clients.135 According to Craig Long, such sessions will
not only train clients on key legal issues, but they will also help clients relate to and trust the
general counsel and see the benefit of the law department.136 These events can range from official
training sessions to more informal “lunch and learn” sessions. The legal department at ACC
follows this practice, engaging in a variety of techniques to educate staff on law department
processes, from providing internal resources on various compliance issues, such as a Top Ten
Employee Dos and Don’ts Regarding Political Dialogue in the Workplace, to conducting informal
educational sessions for staff, to mandatory training sessions on contract management and internal
processes.
2. Conveying a Law Department Culture

In addition to introducing law department processes, a first general counsel should also convey a
strong and supportive law department culture to clients. The following list provides some
techniques to communicate and reinforce the culture of the legal function:
• Articulate the general counsel’s role, the role of outside counsel, and the risk posture of
the law department;137
• Get out regularly and informally talk to clients;
• Actively participate in meetings and share legal opinions;
• Conduct a client survey;138
• Publicly thank clients who follow procedures and openly consult with the law
department;

41
• Demonstrate sensitivity to business and cost considerations in order to create an image

as being part of the business team.
Marketing the law department and conveying a supportive culture will make it easier for a first
general counsel to build good relationships with their new clients. However, it is important to
remember that changing both attitudes and habits takes time, and each company will be different
in terms of how entrenched it is in prior practices that are contrary to the legal function. Thus, a
first general counsel must understand that through patience, consistency, and persistence, the GC
will ultimately convert his or her client from being skeptical or adversarial to being cooperative
and collaborative. These strong client relationships will, in turn, make the general counsel’s job
easier and will make them a better legal advisor for the company overall.
C. Set the Right Law Department Standards

The GC’s marketing efforts will be successful only if clients also perceive that the law department
has adopted successful procedures and effective internal standards. Thus, a first general counsel
should not only provide quality legal work, but should do so in accordance with the right
standards. This Section highlights key standards that, when properly implemented, should
improve a general counsel’s relationship with clients.
1. Demonstrate a Willingness to Assume Risk

Clients appreciate a general counsel who not only gives legal advice, but also shares in the
management responsibility for decisions. According to Nicolas Vanasse and Catherine Valentine,
a first general counsel should demonstrate a willingness to take risks for the business and should
avoid appearing like they are only concerned with risk management.139 Such willingness to
assume reasonable risks establishes the general counsel as part of the business team and
distinguishes them from outside counsel or legal consultants. Especially where the company is
growing the business, Ms. Valentine indicated the general counsel should accept that some degree
of legal risk will be unavoidable, and should remain calm and work within the company’s
reasonable risk tolerance levels.140 This approach will help build credibility for the law department
and will encourage clients to treat the general counsel as part of the corporate team.
2. Run an Approachable, Open-Door Department

To supplement the open communication efforts described in Section V(A) above, a first general
counsel should also implement an open-door policy that makes it clear they are available to their
clients. This will make the law department more “user friendly” and will encourage clients to
share matters with the general counsel. Each member of the department (including any support
staff) should convey the sense that their principal goal is to assist employees in meeting corporate
objectives.

3. Set the Standard for Excellence

The law department should constantly seek to achieve excellence in all areas, including
professionalism, diligence, accuracy and timeliness of legal advice. They should demonstrate a
strong desire to help the corporation meet its goals, and uphold the highest standards of ethical
behavior and good business practices. The law department staff should be committed to being
proactive, solution–oriented, hardworking, self-confident (but not overbearing), and good at
listening. Management and staff will appreciate the law department’s sincere enthusiasm for
supporting its clients and its commitment to excellence in all respects. By setting the bar for
excellence, the law department can gain the respect and confidence of its clients.
D. Measure and Increase Client Satisfaction

A key element to building strong client relationships is obtaining feedback from clients and
constantly taking steps to increase their satisfaction. One of the best ways to measure client
satisfaction is through a survey. This Section provides guidance on how a first general counsel can
plan to use client surveys to measure and increase client satisfaction.
1. Surveying Client Satisfaction

Surveying client satisfaction serves a number of important purposes, including focusing the law
department on creating value, informing future strategic planning, showing the benefits of in-
house counsel, and establishing benchmarking data for measuring future improvement.141 Thus, a
company’s first general counsel should immediately begin a policy of periodically surveying
clients to measure and benchmark client satisfaction.
The most important element of a client satisfaction survey is obtaining enough responses from a
representative number of executives and staff. A first general counsel should invite all clients to
take part in a general survey, but might also create specific questions or sub-surveys for clients in
particularly important positions. The law department should also invite senior clients to forward
the invitation to those members of their group whom they believe would be productive
participants. Furthermore, the general counsel should arrange to interview the company’s most
senior executives, who may not wish to spend time filling out a written questionnaire. A target
client’s participation rate of 40 to 50% should be considered a success.
Each law department should shape its survey to meet its own needs and priorities; however, a
sample survey has been provided in Section IX. It illustrates some of the major segments of a
typical client survey.
2. Increasing Client Satisfaction

Measuring client satisfaction is only half the battle. Once a general counsel discovers what their
clients think of the law department, they need to act clearly and decisively to improve any areas
clients criticize. After completing a survey, a general counsel should consider sending out a
summary of the law department’s proposed revision plan. This will show clients that the law
department actually listened to them and is working to improve.

43
Each company’s survey will yield different results; however, the following is a list of
considerations that most commonly impact client satisfaction:
• Be Timely — clients are happier when the law department gets back to them with an
answer, or at least an update on steps taken within the timeframe they are expecting.
• Be Clear —clients are more likely to support the law department if they can easily
understand law department responses. Thus, a first general counsel should avoid
unnecessary legal jargon and undue complexity.
• Be Practical — clients are happiest when law department responses’ meet their needs
for a pragmatic solution.
Using these general considerations and the client satisfaction survey results as a guide, a first
general counsel can significantly improve the quality of service that the law department provides.
This increased quality of service and demonstrated responsiveness will improve the law
department’s reputation and build stronger client relationships.
V. Identifying and Managing Responsibilities

A. Overview of Typical Business and Legal Responsibilities
1. Legal Responsibilities
Typically, general counsel are responsible for addressing both the legal issues arising from their
clients’ work within specific industries, as well as more general issues that are common to all
industries. Common legal tasks for which most in-house counsel are responsible, irrespective of
their clients’ industries, include.142
• Contract negotiation and review (e.g., ensuring that contracts between clients and
employees, customers, or other parties are written in accordance with guidelines
promulgated by the legal department);
• Risk management and compliance (e.g., assessing whether the client’s business
processes, products, and policies comply with pertinent regulations and determining
the degree to which such compliance is necessary);
• Handling of ethical issues (e.g., providing advice on business ethics); and

• Developing company policies and procedures.
Industry-specific tasks generally reflect the nature of the industry in which the client organization
is engaged. For example, as the general counsel of various tech companies over the past 20 years,
Catherine Valentine has typically provided for “the protection and commercialization of the
company[ies’] intellectual property.”143 Similarly, the general counsel for a credit union often
assumes the company’s litigation to collect unpaid debt.144
2. Business Responsibilities
As managers, general counsel are also involved in tasks typically classified as business functions,
including, for example:145
• Budget management (see Section V(C): Budgeting);
• Workforce planning (see Section VII: Developing a Legal Department);
• Developing departmental goals;
• Managing legal department staff and other direct reports (e.g., compliance, risk
management, or regulatory affairs officers); and
• Negotiating contracts and larger company transactions.
B. Prioritizing Work
To be a successful general counsel, especially as the first general counsel of an organization, a GC
will need to develop a process for prioritizing all of her tasks, both legal and business-based. The
following sections outline the key steps within that process.
In the role of Chief Legal Officer, it is critical to prioritize time and effort. To ensure that the most
important legal issues rise to the proper level, the employees of the corporation should be made
aware of what must come to the attention of the Chief Legal Officer. The following list should be
considered in an effort to ensure that there are “no surprises.”
• Matters having strategic importance or corporate-wide implications
• Issues involving significant financial exposure
• Matters which will involve an unusual consumption of time and/or resources
• Ethical implications, or when serious ramifications could result if advice and counsel are
ignored

45
• Major contracts
• Unbudgeted items
• Matters which might entail adverse publicity, liability or embarrassment to the

corporation
• Lawyer and staff employment, compensation and career progression
• Matters involving corporate wrongdoing
• Anything which, in the judgment of a manager or executive, should be reported to the

Chief Legal Officer
• When legal trends are identified that are significant to the corporation or would be
advantageous for others to know
1. Needs Assessment
In order to assign priorities to his/her work, a GC’s primary step should be to assess the legal
needs of the client organization; a process commonly called a “needs assessment.” A GC can
employ several methods for the needs assessment. One simple and direct method is
communicating directly with management to ascertain what tasks management needs addressed.
Alternatively, a general counsel can defer to outside counsel who have previously worked with the
client organization, to gain an understanding of which legal issues outside counsel considered
most significant.146
Once a general counsel has an increased understanding of the respective industries their client
organization is involved in, they will be better-equipped to independently identify legal needs. For
example, after serving as the first general counsel for several companies within the technology
industry, Ms. Valentine knows that some of the most pressing tasks to be undertaken by the GC of
a technology company include “determining the strength of the company’s patent portfolio…,
whether licenses exist for all third party code, and how strong the financial group is in terms of its
oversight of the sales function.”147
Moreover, if a solo general counsel is successful in building a legal department (see Section VII for
a full discussion of this topic), the GC can collaborate with other attorneys within the department
to assess client needs.148 For example, Maria Pasquale meets with her legal team periodically to
discuss Celgene’s legal needs and gain an understanding of issues arising out of the company’s
work.149
Throughout the assessment process, a general counsel must identify not only current legal issues
affecting the organization, but also potential legal issues that could arise as a result of future
projects and changes in the industry. As the general counsel of a pharmaceutical producer, Maria
Pasquale constantly thinks about the impact of new regulations affecting the pharmaceutical
industry and often attends company board meetings in order to keep herself informed of the
company’s direction.150 In general, Ms. Pasquale devotes an equal amount of time to addressing

current needs and anticipating future needs.151 Similarly, Mr. Smith suggests that 60% of a general
counsel’s time be spent on the former task and 40% on the latter.152
2. Prioritization of Needs
Once a general counsel has identified the comprehensive needs of their respective organization,
they must prioritize these needs in terms of importance. In so doing, a general counsel should
consider the following:
a. Clients’ perceptions of their needs
Depending upon the size, structure, and nature of the organization, a clients’ perceptions of the
organization’s needs can either provide a foundation for the prioritization process or interfere
negatively with this process. For example, one general counsel working for a relatively small
organization often defers to the CEO in determining which needs to address first.153 On the other
hand, Mr. Smith, who works as GC for a major corporation with hundreds of employees, advises
maintaining relative independence in the prioritization process.154 Although Mr. Smith
acknowledges the importance of “satisfying the needs of…human capital,” he cautions against
succumbing to pressure from clients who believe that their respective needs should take priority.155
b. Assessment of risk potential and competitive advantages
A general counsel can also prioritize needs according to their propensity to create potential risks
and/or generate competitive advantages for the organization. Left unaddressed, some needs can
lead to risk for the organization by causing financial loss, non-compliance with industry
regulations, and/or damage to the organization’s reputation. The timely resolution of some needs
can provide a competitive advantage and support for the organization’s business strategy. For
example, by interacting regularly with and providing proactive legal advice to the product
development function at Logitech, Ms. Valentine is able to facilitate revenue generation for the
company.156
A general counsel can prioritize needs according to risk potential or impact on competitive
advantage by assigning each need a quantifiable value corresponding to these factors and then
ranking them accordingly.157 For an example of such a calibration and ranking system, please see
“ACC Primer: Using a Structured Process to Allocate Work.”158
C. Budgeting159
1. Overcoming Preliminary Budgeting Challenges

Before beginning the development of a budgeting process, a general counsel should prepare
themselves to meet some of the challenges associated with this process.
First, because legal work tends to be more reactive than proactive, a general counsel may find it
difficult to predict the level of financial resources required for a particular fiscal year.160 Thus, the

47
GC should be prepared to account for potential differences between the proposed budget and
actual spending by informing clients of the possibility of unforeseen legal expenses.161 For
example, Mr. Smith is careful to inform his company’s Chairman that unanticipated events like
litigation will change his budget projections.162 In fact, such circumstances have affected his
department’s actual spending in the past, but Mr. Smith has been able to address any discrepancies
without incidence because his company was already aware of the possibility.163 Moreover, tracking
spending patterns and drawing correlations between these patterns and company revenue may
provide support for an argument for increased budgetary resources.164
Second, because management may view the legal function as an inhibitor to, rather than facilitator
of, revenue growth, it may be reluctant to provide adequate funding to the legal function.
According to Mr. Smith, general counsel may be able to overcome this hurdle by demonstrating
that “spending a little bit more now may save you a lot more later.”165 For example, when
proposing retention of outside counsel to update an outdated company policy, Mr. Smith worked
to convince management that investing in the update would protect the company from potential
costly legal actions in the future.166
2. Developing a Budgeting Process

Although the unpredictability of legal expenditures (as discussed in subsection V(c)(11)) may
make budgeting a particularly difficult task for general counsel, this unpredictability can be
mitigated through a variety of measures, which are discussed in the subsections below.
a. Accounting for Specific Matters
Because a large portion of a typical legal function’s expenditures consists of costs incurred on
specific matters, a general counsel should develop a method of calculating budgets for these
individual matters. In so doing, the general counsel should account for the following budget
drivers:167
• Anticipated hours, rates and expenses (out-of-pocket, pass through, and third party) of
a legal matter;
• The roles and responsibilities of each outside and in-house legal counsel;
• Jurisdictional or other regional considerations that may impact cost;
• Matter inception date and anticipated life expectancy;
• The matter phase; and
• Anticipated strategy for resolving the matter.
A general counsel may want to account for these factors through use of a standard template. Used
properly, such a template “provides for consistency among like matters, facilitates consolidation
into the master budget, and provides the necessary data for reports and metrics.”168

b. Factoring–In Spending
Factoring past expenditures into the budgeting process can increase a general counsel’s predictive
power in determining future expenses. When tracking spending, a general counsel may find it
helpful to look at individual expenditures (e.g., for overhead costs or specific legal matters), total
legal spending, and total legal spending as a proportion of the client’s total revenue (i.e., legal
expenditures divided by total revenue).
Of course, a company’s first general counsel naturally will not be able to track past expenditures
within the initial year(s) of their employment. In light of this, a general counsel may want to look
at spending patterns at organizations of comparable size, organizations within the same industry,
or at national averages for legal function expenditures.
The following charts display legal department spending according to industry.

49
Total 2010 Internal Law Department Expenditures169

Internal Law Department Expenditures (not including outside counsel, insurance or liability payments)

$1 -‐ $2.5 -‐ $5 -‐ $10 -‐ $20 -‐ $50
< $500,000 -‐
Primary Industry $2.4 $4.9 $9.9 $19.9 $49.9 million Average Median
$500,000 $999,999
million million million million million or more
Accommodation/ Food
27% 27% 0% 18% 0% 9% 9% 9% $4,991,944 $1,000,000
Services
Construction &
44% 33% 22% 0% 0% 0% 0% 0% $3,215,290 $1,200,000
Engineering
Educational Services 35% 15% 30% 10% 5% 5% 0% 0% $1,681,131 $975,000
Energy 24% 20% 36% 8% 0% 8% 4% 0% $170,453,830 $1,000,000
Finance & Banking 44% 33% 11% 11% 0% 0% 0% 0% $5,462,978 $1,050,000
Health Care /Social
38% 23% 23% 8% 0% 0% 8% 0% $4,154,130 $592,500
Assistance
Information Technology/
Software/ Internet 0% 0% 100% 0% 0% 0% 0% 0% $2,024,921 $700,000
Related Services
Insurance 33% 0% 33% 0% 0% 0% 0% 33% $24,490,896 $750,000
Manufacturing 28% 17% 28% 11% 0% 6% 11% 0% $1,882,946 $750,000
Not for Profit
26% 22% 31% 11% 2% 4% 2% 2% $931,250 $525,000
Organization
Pharmaceuticals/ Medical
25% 13% 38% 13% 13% 0% 0% 0% $4,135,763 $1,000,000
Devices
Professional, Scientific
43% 25% 18% 7% 0% 5% 0% 2% $696,245 $500,000
and/ or Technical Services
Real Estate/ Rental and
58% 17% 25% 0% 0% 0% 0% 0% $1,552,857 $900,000
Leasing
Retail Trade 38% 15% 15% 23% 0% 8% 0% 0% $2,750,849 $1,050,000
Service Company and
25% 17% 25% 8% 8% 8% 4% 4% $1,381,893 $650,000
Organization
Telecommunications 50% 33% 17% 0% 0% 0% 0% 0% $4,279,776 $1,150,000
Wholesale Trade/
35% 22% 29% 5% 5% 3% 2% 0% $2,977,284 $750,000
Distribution

Total 2010 Outside Counsel Expenditures170

Outside Counsel Expenditures (including fees, expenses and expert fees)

$1 -‐ $2.5 -‐ $5 -‐ $10 -‐ $20 -‐ $50
< $500,000 -‐
Primary Industry $2.4 $4.9 $9.9 $19.9 $49.9 million or Average Median
$500,000 $999,999
million million million million million more
Accommodation/ Food
17% 17% 28% 6% 11% 11% 11% 0% $5,518,889 $1,450,000
Services
Construction &
27% 14% 18% 27% 0% 5% 9% 0% $3,838,275 $2,000,000
Engineering
Educational Services 37% 16% 26% 11% 5% 5% 0% 0% $2,121,457 $850,000
Energy 30% 13% 26% 4% 4% 9% 9% 4% $439,742,260 $1,000,000
Finance & Banking 33% 11% 21% 16% 11% 5% 0% 4% $15,205,944 $1,100,000
Health Care/ Social
38% 15% 26% 8% 3% 3% 5% 3% $4,914,439 $700,000
Assistance
Information
Technology/ Software
43% 9% 25% 7% 9% 3% 3% 0% $2,316,360 $700,000
/Internet Related
Services
Insurance 52% 8% 10% 10% 4% 10% 4% 0% $3,589,077 $400,000
Manufacturing 18% 13% 22% 21% 6% 11% 8% 1% $5,800,107 $2,000,000
Pharmaceuticals/
21% 17% 25% 13% 8% 0% 4% 13% $29,080,167 $1,900,000
Medical Devices
Real Estate/ Rental
31% 4% 27% 12% 19% 4% 4% 0% $4,095,769 $1,313,000
and Leasing
Retail Trade 10% 35% 29% 13% 6% 6% 0% 0% $2,311,031 $1,100,000
Service Company and
53% 5% 21% 5% 0% 11% 5% 0% $2,971,334 $400,000
Organization
Telecommunications 29% 10% 29% 19% 5% 5% 5% 0% $4,146,926 $1,500,000
Wholesale Trade/
29% 18% 24% 18% 6% 6% 0% 0% $2,151,040 $1,000,000
Distribution


51
The following chart displays legal department spending in accordance with size.
Total 2010 Internal Law Department Expenditures171

Internal Law Department Expenditures (not including outside counsel, insurance or liability payments)
$2.5 -‐ $5 -‐ $10 -‐ $20 -‐ $50
< $500,000 -‐ $1 -‐ $2.4
$4.9 $9.9 $19.9 $49.9 million Average Median
$500,000 $999,999 million
million million million million or more
< 100 62% 24% 10% 1% 2% 0% 0% 1% $10,704,539 $350,000
100 -‐ 499 51% 23% 20% 4% 1% 1% 1% 0% $1,047,005 $466,000
500 -‐ 999 36% 28% 26% 6% 3% 1% 0% 0% $1,156,016 $600,000
1,000 -‐ 4,999 22% 23% 36% 11% 3% 3% 2% 0% $20,264,354 $1,000,000
Number of 5,000 -‐ 9,999 13% 17% 29% 21% 10% 7% 3% 0% $3,797,532 $1,650,000
Employees 10,000 -‐
6% 12% 30% 23% 10% 11% 6% 1% $5,848,735 $2,500,000
49,999
50,000 -‐
8% 0% 8% 25% 0% 8% 33% 17% $28,541,680 $11,500,000
99,999
100,000+ 5% 5% 15% 5% 15% 15% 15% 25% $38,700,437 $12,500,000

< $25 70% 23% 5% 0% 1% 0% 0% 0% $441,824 $270,000
$25-‐$49 60% 24% 13% 2% 2% 0% 0% 0% $660,387 $400,000
Annual
$50-‐$99 52% 29% 14% 5% 0% 0% 0% 0% $713,700 $480,000
Revenue
$100-‐$299 45% 24% 26% 3% 2% 1% 0% 0% $967,664 $500,000
(millions)
$300-‐$499 30% 32% 34% 3% 0% 0% 1% 0% $1,153,818 $650,000
$500-‐$999 21% 28% 32% 14% 4% 2% 1% 0% $1,843,372 $1,000,000

$1-‐$1.9 9% 14% 37% 23% 8% 6% 1% 1% $54,398,715 $2,000,000
Annual
$2-‐$2.9 2% 7% 48% 30% 9% 2% 2% 0% $3,120,032 $2,000,000
Revenue
$3-‐$3.9 0% 11% 33% 28% 11% 11% 6% 0% $5,458,333 $3,000,000
(billions)
$4.0 + 4% 6% 20% 12% 15% 17% 16% 10% $29,714,272 $8,000,000

Public
11%
17%
32%
17%
8%
7%
5%
4%
$23,877,536
$1,600,000
Organization
Private 45% 25% 22% 4% 2% 1% 1% 0% $4,308,250 $500,000
Type
Non-‐Profit 40% 19% 26% 6% 4% 6% 0% 0% $1,748,539 $750,000


Total 2010 Outside Counsel Expenditures172
Outside Counsel Expenditures (including fees, expenses and expert fees)

$1 -‐ $2.5 -‐ $5 -‐ $10 -‐ $20 -‐ $50
< $500,000 -‐
$2.4 $4.9 $9.9 $19.9 $49.9 million Average Median
$500,000 $999,999
million million million million million or more
< 100 61% 15% 15% 3% 3% 2% 1% 0% $1,304,047 $300,000
100 -‐ 499 57% 17% 16% 5% 3% 2% 0% 0% $1,172,642 $375,000
500 -‐ 999 33% 17% 24% 14% 6% 2% 5% 0% $2,891,815 $950,000
1,000 -‐ 4,999 21% 16% 31% 18% 8% 4% 2% 0% $50,250,896 $1,500,000
Number of 5,000 -‐ 9,999 10% 19% 19% 29% 11% 11% 2% 0% $3,934,029 $2,500,000
employees 10,000 -‐
4% 11% 23% 12% 11% 16% 14% 9% $14,301,734 $4,000,000
49,999
50,000 -‐
9% 0% 18% 9% 0% 9% 36% 18% $58,933,814 $20,000,000
99,999
100,000+ 11% 6% 6% 6% 17% 11% 17% 28% $64,682,667 $13,250,000
< $ 25
71%
13%
12%
1%
1%
0%
1%
0%
$1,012,327
$250,000
$25-‐$49 68% 14% 12% 2% 2% 3% 0% 0% $962,395 $200,000
Annual
$50-‐$99 62% 20% 12% 4% 1% 0% 0% 0% $592,397 $255,000
Revenue
$100-‐$299 38% 18% 27% 8% 8% 2% 0% 0% $1,559,577 $725,000
(millions)
$300-‐$499 20% 19% 39% 13% 5% 3% 1% 0% $2,068,049 $1,200,000
$500-‐$999 18% 19% 26% 23% 7% 4% 3% 1% $3,905,413 $1,400,000

$1-‐$1.9
8%
10%
32%
31%
4%
8%
4%
1%
$144,723,939
$2,400,000
Annual
$2-‐$2.9 2% 18% 23% 23% 18% 11% 5% 0% $5,359,267 $2,800,000
Revenue
$3-‐$3.9 0% 21% 26% 11% 16% 21% 5% 0% $5,726,316 $2,500,000
(billions)
$4.0 + 8% 6% 8% 10% 12% 18% 21% 17% $34,918,484 $11,250,000

Public
11%
11%
26%
21%
10%
10%
7%
6%
$55,843,019
$2,700,000
Organization
Private 44% 20% 18% 9% 4% 2% 2% 0% $2,005,843 $500,000
Type
Non-‐Profit 54% 8% 19% 8% 3% 3% 4% 0% $2,309,299 $400,000


53
Finally, in regards to legal spending across all industries and sizes, the median total legal spending
for law departments in 2010 was $24 million in the U.S. and $33 million worldwide, and the
national average legal spending to revenue ratio was 0.40 percent.173 These numbers are lower
than in previous years, as law departments are cutting their total spending. This decrease results
from a reduction in budgets for outside counsel spending, although there are increasing budgets
for inside legal spending due to an increased focus on “optimizing the use of internal resources
through organizational and operational effectiveness.”174 However, spending on outside legal
counsel continues to consume the majority of many legal functions’ budgets.175
c. Planning for Regular Budget Updates
A general counsel can mitigate unpredictability by instituting an update schedule that accounts for
material alterations to the budget.176 A general counsel may wish to preface this by alerting
management to the possibility of unforeseen expenditures prior to initial calculation of the budget
(as discussed in sub-section V(C)(1).
3. Sticking to the Budget

After developing a process for budgeting, a general counsel should develop measures for sticking
to the budget. In general, a general counsel should aim to keep expenditures from going more than
5% over or under the projected budget.177
Where a general counsel has successfully developed a multi-member legal department, they can
enforce adherence to the budget by:178
• Requiring submission of periodic reports and updates by members of the legal

department;
• Reviewing these reports and noting any substantial variances;
• Following up on notable variances with the issuer of the report by discussing reasons
for the variance, proposals for getting back on track, and/or adjustment of the budget;
• Taking budget adherence or variance into consideration during performance reviews

and, where appropriate, rewarding adherence.
Ultimately, a general counsel should be aware that the company’s upper management will
ultimately hold the internal legal function accountable for impermissible budget variances. In light
of this, it is incumbent on a general counsel to enforce adherence to the budget by outside counsel
and by any other members of the legal department.179

VI. Managing Outside Counsel

A. Engaging Outside Counsel
1. Assessing Whether a Matter should be Outsourced or Handled Internally

Perhaps one of the biggest challenges that all in-house counsel face is deciding whether a legal
matter should be handled internally or should be outsourced. This is a particularly difficult issue
for a new general counsel, given that the company’s expectation in hiring a GC is often to stop
outsourcing the legal work. Thus, the GC must be sensitive to not only the cost of outsourcing, but
also to the image that outsourcing legal work conveys to the company/client. The GC will need to
balance these sometimes competing interests.
A useful first step in assessing whether to outsource a legal matter is to determine whether the
legal department has sufficient “knowledge and manpower to handle a task [internally],” and
whether “the work adds value to the company.”180 If the legal department is unable to complete
the task, or if the costs of doing so internally outweigh the costs of outsourcing, then it should
assign the task to outside counsel. A legal department should try to minimize the cost of outside
counsel retention, through a variety of approaches, such as selecting solo practitioners or
temporary attorneys instead of major law firms and/or negotiating value-based fee structures (as
opposed to hourly-rate fee structures).181
a. Preliminary Guidelines
Because a general counsel will often lack the time to assess in detail whether the costs of
outsourcing outweigh the benefits, they should develop a general preliminary approach to how
particular tasks should be handled. For example, Catherine Valentine, corporate counsel at
Logitech, recommends that legal departments assign high-volume, repetitive tasks to in-house
attorneys and overflow work of this nature to solo practitioners.182 She suggests that outside
counsel be utilized only where in-house attorneys lack the experience and judgment to complete a
particular task.183 Maria Pasquale, Chief Counsel at Celgene Corp., suggests that this latter
category may include litigation and intellectual property matters.184
b. Cost Evaluation Measures
Where a general counsel has not yet developed a sense for determining when using outside
counsel will be most cost-effective, they should use measures that will assist in analyzing the cost.
These include market price comparison and cost reduction measures.
• Market Price Comparison. A general counsel should develop a method of determining

whether the amount sought by a particular firm or practitioner for a particular service
reflects the market price for this service. To this extent, they should ascertain the
average price charged for this service. They should also look into how this price fits

55
with current pricing trends by, for example, reviewing past bills for similar or
equivalent work.185
• Cost Reduction Measures. A general counsel should also develop a series of measures
when engaging outside counsel that could result in reduction of costs. When
determining whether a task should be outsourced, a general counsel can then evaluate
outside counsel based partly on the degree to which they are willing to accept these
measures. These measures may include:
• Alternative Price Structures. Alternative pricing structures refer to payment methods

that differ from the traditional billable hours model, and their implementation into
contracts with outside counsel may help reduce expenditures. Alternative pricing
options include:186
• Fixed Fees—fixing a definite price to a distinct piece of work;

• Capped Fees Under an Hourly Rate—placement of a ceiling on what the client
will pay the firm for a particular piece of work or for work on a particular matter;
• Flat Fee Per Month/Quarter—fixing a definite price for services delivered during
the course of a specified period;
• Portfolio Fixed Fee—assignment of large portfolios of work for a fixed fee;
• Per Capita Fees/Ad Agency Model—Paying for the use of the full services of a
particular person or team of people;
• Performance-Based Holdback—contingency of a portion of compensation
received upon achieving a pre-defined outcome or success metrics; and
• Pure Contingency—complete contingency of compensation paid upon success in
the legal matter.
• Budget Guidelines. A detailed budget may include, among other points, the following:
• Identification of planned tasks;

• Forecast of staffing numbers and identification of staff members in terms of
experience; and
• Projected timeframe for completing the project.
• Workflow Control Guidelines. These guidelines provide for a means of determining

the requisite experience level (e.g., that of a paralegal, junior associate, senior associate,
or partner) necessary for a particular task, and the degree to which a general counsel is
able to dictate task delegation based upon these determinations.187
• Cost Control Guidelines. These guidelines can be tailored to provide caps or exclude
charges for routine expenses such as photocopying, faxing, printing, telephone usage,

and online research.
2. Evaluating and Selecting Outside Counsel

In deciding which firm or practitioner to use for a particular matter, a general counsel should
consider cost (as discussed above) and the extent to which a particular firm or practitioner will
perform satisfactorily. Quality of performance can be measured by assessing the degree to which
outside counsel will meet the expectations of the general counsel. To this extent, a general counsel
should develop a set of expectations that they expect outside counsel to meet. These may include
the following:188
• Effectiveness in achieving a favorable outcome for the client;
• Transparency and open communication;
• Overall business perspective and thorough understanding of the client company’s

specific industry and business; and
• Timeliness in preparation and filing of materials.
Additionally, in conducting this evaluation and selection process, a general counsel should
consider adopting a strategy of convergence (i.e., reducing the number of outside law firms with
which the legal department regularly works),189 which allows for greater control over outside
counsel spending.190
B. Supervising Outside Counsel

Along with selecting which firms to retain as outside counsel, the general counsel must draft a
series of documents that will establish the framework for managing outside counsel. This includes
preparing outside counsel guidelines and an outside counsel retention policy.
1. Preparing Outside Counsel Guidelines

A general counsel should draft a set of guidelines that govern retention of and relationship with
outside counsel. These guidelines ensure that clients and/or law department staff interact with
outside counsel in an appropriate manner. Although a general counsel should draft guidelines
adapted to the unique needs and culture of their respective clients, guidelines should generally
address the following:191
• Engagement with Outside Counsel—the guidelines should limit who can engage
outside counsel to those approved by the general counsel and restrict discussions of
legal matters with outside counsel to law department attorneys;

57
• Conflicts of Interest—a general counsel should develop a policy regarding outside

counsel’s representation of other clients with adverse interests;
• Staffing Matters—the guidelines should govern the number of outside counsel staff
members permitted to work on a particular legal matter and promote diversity among
this staff;
• Confidentiality—the guidelines should also restrict the dissemination of nonpublic

information;
• Ethical Conduct—there should be a policy regarding the ethical expectations for both
in-house attorneys and the outside counsel with whom they interact;
• Malpractice Insurance Coverage—the guidelines should require that outside counsel

maintain malpractice insurance;
• Managing Litigation—a general counsel should lay down guidelines for file retention,
discovery, and early case assessment; and
• Invoicing—There should be guidelines regarding invoicing procedures, budget

considerations, requests for rate increases, reimbursement of expenses, non-billable
time, etc.
Once completed, these guidelines should be sent both to company employees and outside counsel
that the company plans to retain for future legal matters. These guidelines should also accompany
any future engagement letters retaining a firm for legal services. A general counsel should ask
outside counsel to sign and return the guidelines within a reasonable timeframe.192
2. Drafting An Outside Counsel Retention Agreement

Like outside counsel guidelines, outside counsel retention agreements govern engagement with
outside counsel. They are often drafted in the form of a letter and addressed to outside counsel,
and may contain terms addressing:193
• Billing cycles and formats;
• Project budgets;
• Approval for change of attorneys;
• Approval for change of rates;
• Limits on costs and travel expenses;
• Discounts from standard hourly rates (e.g., for early payment);

• Client ownership of work product;
• Early case assessments;
• Alternative dispute resolution;
• Technology requirements; and
• Minimum required associate experience.
3. Implementing Strategies to Manage Outside Counsel

The management of outside counsel that is retained is also very important and requires the
development of metrics and practices by the law department.
a. Developing Metrics to Evaluate Effectiveness
In order to evaluate the effectiveness of outside counsel, the general counsel should develop and
utilize a series of metrics that can assist in quantifying and comparing performance. These can be
based on the following:194
• Rate of overall success in achieving client goals (e.g., tracking numbers of “wins,”
frequency with which outcomes within expected parameters are achieved, and/or
frequency with which matters are resolved within particular timeframes, etc.);
• Scoring by members of the legal department of outside counsel in terms of creativity,

responsiveness, efficiency, willingness to engage in knowledge-sharing, etc.;
• Comparative costs (i.e., comparing the rates of a particular firm to those of others for
producing a particular piece of work);
• Percentage of matters for which a firm submitted a full-year budget on time;
• Percentage and frequency of matters for which outside counsel submitted updates of
expenditure forecasts;
• Actual spending as a percentage of budgeted spending for particular matters;
• Average blended rate for all firm attorneys who billed to the client; and
• Frequency with which outside counsel submit monthly reports, early case assessments,
after action reviews/lessons learned, etc. for particular matters; and
• Degree to which a particular firm adheres to outside counsel guidelines and the outside
counsel retention agreement.195

59
b. Developing Management Practices
It is also incumbent on the first general counsel to formulate and implement practices for
overseeing and managing projects undertaken by outside counsel. Some best practices include:
• Designating in-house relationship managers for core law firms. These relationship
managers can serve as ambassadors to firms with which the client frequently works,
and to this extent, can manage the performance of these firms by scheduling periodic
check-ins or annual meetings to review outside counsel performance.
• Appointing business managers to help with outside counsel management procedures.

A general counsel can solicit assistance from business managers in completing tasks
with which attorneys may be less experienced, such as review of outside counsel
budgets, forecasts, and invoices, and tracking of performance scorecards.
• Instituting regular early case assessments. Engaging in early case assessment to

develop an overview of a particular legal matter can provide inside counsel with insight
regarding the overall objectives and projected legal costs. In turn, inside counsel are
then better equipped to communicate specific goals to outside counsel and to ensure
that outside counsel expenditures are reasonable in light of these goals.
• Developing a method for reviewing outside counsel expenditures. Such a method

could entail, for example, tracking expenditures by means of spreadsheets and
comparing these expenditures to the market value for comparable services.
VII. Developing the Law Department

A. Staffing the New Law Department
As workload increases, a general counsel may find it necessary to increase staff, which may entail
hiring additional lawyers, paralegals, personnel, and technology administrators. To this extent, a
general counsel should be ready to justify expansion to management, determine who to hire, and
develop strategies for attracting and retaining staff.
1. Hiring Attorneys
a. Justifying expansion to management
Before hiring additional staff members, a general counsel must often demonstrate a need for more
staff to management. In-house counsel should convey to management that the increase in
productivity resulting from expansion justifies the additional expenditures.196

Some of the arguments that can be used to persuade management to hire additional in-house
counsel are that they:197
• Understand the company better than outside counsel;
• Can participate in strategic/business planning;
• Are better than clients at managing outside counsel;
• Have better relationships with the client;
• Are more cost effective in the long term;
• Are accessible to the client.
• Provide for easier maintenance of costs;
• Have interests and objectives that are more closely aligned with the company’s
objectives as compared to outside counsel; and
• Understand the business and nuances of the client’s particular industry.
However, it may be difficult in practice to quantify potential cost savings created by expansion. In
light of this, Nicolas Vanasse, Chief Legal Officer at Aveos Fleet Performance, Inc., recommends
finding benchmarking data on sizes of typical legal departments and tracking the number of hours
legal department staff members are working so as to demonstrate the risk of these employees
burning out.198 To assist in this effort, the following tables from the 2011 ACC Chief Legal Officer
Survey display correlations between numbers of attorneys and numbers of overall employees,
annual revenue, type of organization, and type of industry:

61
Attorney Staffing Levels by Company Size and Type199

Number of lawyers

21 to 51 or
Solo 2 to 5 6 to 20 Average Median
50 more
< 100 67% 28% 4% 0% 2% 3.60 1
100-‐499 45% 48% 7% 0% 0% 2.86 2
500-‐999 29% 56% 14% 1% 0% 3.45 3
1,000-‐4,999 20% 49% 29% 2% 0% 5.08 3
Number of 5,000-‐9,999 13% 38% 39% 9% 1% 8.91 5
employees
10,000-‐
49,999 5% 24% 43% 19% 9% 23.31 12
50,000-‐
99,999 0% 6% 29% 24% 41% 79.35 41
100,000+ 0% 7% 11% 25% 57% 91.18 55

< $ 25
68% 29% 2% 0% 2% 3.24 1
$25-‐$49 63% 32% 5% 0% 0% 1.82 1
Annual $50-‐$99 50% 44% 7% 0% 0% 2.24 2
revenue
$100-‐$299 44% 47% 10% 0% 0% 2.67 2
(millions)
$300-‐$499 30% 58% 12% 0% 0% 3.06 3
$500-‐$999 16% 55% 28% 1% 0% 4.62 3

$1-‐$1.9
5%
49%
44%
2%
0%
6.79 5
Annual $2-‐$2.9 2% 43% 49% 6% 0% 8.80 6
revenue
$3-‐$3.9 3% 28% 41% 14% 14% 23.62 9
(billions)
$4.0 + 3% 9% 33% 29% 25% 50.48 25

Public
12%
41%
31%
9%
7%
19.51 5
Organization Private 46% 41% 11% 2% 1% 4.03 2
Type
Non-‐Profit 33% 44% 20% 3% 1% 5.41 3

Attorney Staffing Levels by Primary Industry200

Number of Lawyers
51 or
Primary Industry Solo 2 to 5 6 to 20 21 to 50 Average Median
more
Accommodation/Food Services 44% 28% 11% 6% 11% 10.94 2
Arts, Sports &

53% 24% 24% 0% 0% 3.24 1
Entertainment/Recreation
Aviation/Aerospace 39% 22% 28% 6% 6% 14.44 2
Biotechnology/Life Sciences 33% 50% 11% 0% 6% 8.94 2
Construction & Engineering 31% 36% 25% 6% 3% 7.53 3
Educational Services 40% 36% 24% 0% 0% 4.20 2
Energy 26% 29% 34% 9% 3% 9.03 4
Finance & Banking 29% 44% 23% 2% 1% 9.22 2
Health Care/Social Assistance 33% 48% 13% 2% 3% 6.32 3
Information
Technology/Software /Internet 32% 45% 20% 2% 0% 4.38 2
Related Services
Insurance 35% 37% 11% 10% 8% 17.06 3
Manufacturing 28% 35% 26% 8% 3% 9.12 3
Not for Profit Organization 33% 52% 14% 0% 0% 3.33 2
Oil & Gas 22% 52% 13% 4% 9% 18.26 3
Pharmaceuticals/Medical
36% 24% 27% 9% 3% 21.30 4
Devices
Professional, Scientific and/or
18% 55% 27% 0% 0% 3.50 3
Technical Services
Real Estate/Rental and Leasing 26% 46% 23% 5% 0% 5.26 2
Retail Trade 16% 55% 18% 7% 5% 9.68 3
Service Company and

38% 38% 19% 4% 0% 4.23 2
Organization
Telecommunications 17% 48% 17% 7% 10% 17.83 4
Transportation & Warehousing 37% 26% 11% 16% 11% 15.95 3
Wholesale Trade/Distribution 50% 38% 13% 0% 0% 3.54 2

63
b. Hiring the Right Attorneys
Once a general counsel is able to establish that the department needs to expand, he or she needs to
decide what to look for in potential hires. A general counsel may want to focus on the following
characteristics:
• Technical competency and experience;
• Compatibility with company culture;
• Business savvy; and
• Project management skills.
A general counsel should take advantage of effective interviewing strategies to ascertain whether a
potential hire has these characteristics. For example, when interviewing candidates for positions at
Aveos, Mr. Vanasse determines the extent of their business savvy by asking about the commercial
side of candidates’ previous companies, as well as what they know about Aveos’ industry and its
unique business and legal challenges.201 Ms. Pasquale of Celgene Corporation allows other
attorneys in her office to screen candidates for technical competency, while she focuses on whether
“candidates fit in with the company culture.”202
c. An Alternative to Full-Time Hiring: Project Attorneys/Legal Support Professionals
In order to reduce the costs associated with full-time staffing, general counsel may engage in
flexible staffing by hiring attorneys on an interim basis. This entails contracting attorneys to work
with members of the legal department on specific projects and retaining them only until such
projects are completed. These project attorneys (or legal support professionals) are hired where
they possess expertise integral to particular projects and where full-time staff members lack this
expertise203.
Flexible staffing provides several advantages, including:
• Decreased costs as project attorneys are paid only on an interim basis;
• Increased efficiency as specific skill sets are utilized for specific projects; and
• Increased employee morale, as the jobs of staff members are not threatened by
recruitment of additional full-time staff members.
When hiring attorneys on a project basis, it is important that general counsel establish good
relationships with these attorneys. They can do so by204:

• Familiarizing them with the organization, introducing them to key people, and
identifying resources at their disposal;
• Outlining their job responsibilities and job titles;
• Preparing a dedicated work area or office for use by the attorneys prior to the
commencement of the project; and
• Maintaining frequent communication by meeting regularly with the project attorneys to

receive status reports, clarify responsibilities, and review the scope of their authority.
2. Hiring Other Staff Members

Expansion of the legal department does not always entail the hiring of attorneys. Often, paralegals,
secretaries, administrators, and technology experts can fill particular needs at costs lower than
those of hiring additional attorneys.
The overall composition of the law department has changed very little over the last few years.
Respondents to the 2011 CLO Survey report that, on average, two-thirds (67%) of their law
department staff consists of lawyers. The remainder is comprised of paralegals/legal assistants
(23%), contract administrators (4%), technical support (1%), and other (5%). These results are
identical to 2009 and very similar to the results from 2008.205
What percentage of your law department staff are…
Computer/
SoNware Technical
Contract Support Staff, Other,
Administrators, 1% 5%
4%
Paralegals/Legal ACorneys,
Administrators, 67%
23%

65
a. Paralegals
The use of paralegals is cost-effective and efficient because paralegals can often do the work of
attorneys at lower costs. The functions typically performed by paralegals have expanded to
include those traditionally handled by attorneys, including:206
• Assisting in preparation for transactional closings, depositions, hearings, and

conferences;
• Conducting research, factual investigations, preparing legal documents, reviewing and

organizing case files, assisting with depositions, preparing cases for trial, interviewing
and communicating with clients and witnesses, etc.;
• Drafting legal documents such as contracts, real estate leases, and closing documents;
and
• Organizing and tracking files for important transactions or case documents, including
pleadings and research and discovery documents.
Hiring paralegals instead of attorneys to handle these tasks can help reduce expenditures by
minimizing the cost pressures of lawyer career progression programs, which may impose
increases in attorney salaries without corresponding increases in productivity.
In determining how many paralegals to hire, general counsel can look both to the number of
attorneys in the department and to the size (as measured in revenue) of the organization. In
regards to hiring based on the number of employees, the average benchmark number for
paralegals to the number of lawyers employed in-house is approximately 1 to 3.207
There are a number of factors that can increase or diminish the effectiveness of a paralegal
program. The following chart addresses some of these factors:


67
b. Legal Secretaries
Legal secretaries can help ensure the smooth functioning of a legal department by providing
support for attorneys. Highly coveted legal secretaries possess the following skills and
qualifications:208
• Proficiency in Microsoft Office;
• Strong backgrounds in litigation and e-discovery;
• Experience in document management, legal research, time tracking, and billing software
such as Concordance, CT Summation, iManage and Relativity.
Generally, the tasks of legal secretaries include:
• Attending and taking notes at meetings;
• Preparing legal documents and updating transactional documents;
• Transmitting legal correspondence; and
• Completing administrative forms, organizing and maintaining case and correspondence

files.
c. General Administrative Support
A general counsel must also plan for appropriate levels of administrative support. The average
staffing ratio of administrative employees to lawyers is approximately 1 to 2.209
Close to one-fourth (24%) of respondents to the 2011 CLO Survey report that their law department
staff consists of only lawyers. This percentage has not changed from 2009 but is still down slightly
from the 26% responded in 2008; yet it is still not at the 22% reported in 2007. More than two-
thirds (70%) indicate they have paralegals and/or legal assistants in their law department. This is
just slightly down from the 71% in 2009, but is still up compared to 68% in 2008. The percentage
reported in 2007 was 76%.210
Though the number of respondents stating their offices consists of lawyers only has remained the
same, fewer respondents report having various types of non-lawyer staff in their law department
as compared to 2009; however, there are still more support staff than those reported in 2008. The
only exception is technical support staff, which dropped from 10% in 2009 and 7% in 2008 to only
5% in 2011.211

One or more staffer in each posi9on: 2011
2009
2008
24%
ACorneys only 24%
26%
70%
Paralegals/Legal Admins 71%
68%
19%
Contract Administrators 22%
17%
5%
Technical Support Staff 10%
7%
20%
Other 24%
17%
3. Recruiting and Retaining Employees
a. Determining Appropriate Compensation
While compensation for legal department staff members remains below pre-recession levels, it is
nevertheless increasing. Average salaries for in-house attorneys have risen by 1.9–3.4% from 2011
to 2012 (depending on the experience of the particular attorney), while salaries for in-house
paralegals and legal secretaries have increased by .6–2.0% over this same period (also depending
on experience).212

69
Current compensation levels for legal department staff members are as follows:213
Position Type Experience Salary
10-12 years $130,750–$225,500
4-9 years $96,750–$184,000

In-House Attorney
1-3 years $76,750–$118,000
First-Year Associate $64,000–$98,250
7+ years $54,750–$83,500
4-6 years $46,750–$65,000

In-House Paralegal
2-3 years $40,000–$51,500
0-2 years $32,000–$41,000
7+ years $50,750–$65,250
In-House Legal Secretary 3-6 years $42,250–$54,000
1-2 years $37,000–$42,000
Legal Word Processor $40,750–$53,750
Document Coder $30,500–$41,000

General Administrative
Office Clerk $27,000–$36,750
Legal Receptionist $27,500–$37,250

These salary levels reflect national averages, but true salary levels may vary by city. For example,
law department employees in New York City, San Francisco, and Washington D.C. earn,
respectively, 141%, 135.5% and 130% of the national average. In contrast, employees in Cleveland,
Pittsburgh, and Las Vegas earn 95%, 96.2% and 94% of the national average.214
a. Benefits of Working In-house
When recruiting new staff, a general counsel should also be prepared to sell potential hires on the
benefits of working in-house. One benefit of working in-house that general counsel can tout as a
recruiting tool is the opportunity for personal development and career progression. Because in-
house counsel are expected to perform both legal and business functions, attorneys working in
legal departments often have the opportunity to enhance their knowledge of various business
operations through work on various projects or participation in meetings or presentations by other

departments. Moreover, general counsel can facilitate this development by rotating assignments
among staff attorneys and thus increasing each attorney’s exposure to various areas of law or
business. In addition, because each member of a particular legal team may offer unique expertise,
there are often ample opportunities for mutual education through the sharing of ideas or
experiences within the legal department.
In addition, establishing a clear and well-defined career progression process is essential to

ensuring in-house job satisfaction. A chart listing criteria for lawyer progression is included in the
Appendix to this InfoPAK.
B. Technology
General counsel should also endeavor to ensure that the technology utilized by the legal
department is up-to-date. Doing so involves tracking the development of, and implementing,
essential technologies. If possible, a general counsel should also consider implementing more
advanced, non-essential technologies. For a full discussion of these technologies, please see
”Technology Primer,” ACC InfoPAK (June 2011), available at
http://www.acc.com/legalresources/resource.cfm?show=19671.
In addition to the administrative staff, there is a need for personnel to properly service the law
department’s technology needs. This service can be provided by the company’s general
information services department or, alternatively, the law department itself.
VIII. Ethics and Advocacy

A. Combining Roles as a Business Advisor and a Legal Advocate
A first general counsel must also be careful to clarify and reconcile their many roles within the
company.215 For instance, company employees may not initially understand who qualifies as the
general counsel’s corporate client.216 Clients must learn that the GC does not represent them
individually, but rather represents the company as a whole.217
A first general counsel should also be particularly careful when drawing the line between giving
legal advice and giving business advice.218 When a GC gives legal advice to a client, the
communications enjoy the protection of the attorney-client privilege, however if they step into the
role of management and offer business advice on a question, they forfeit that protection.
In today’s corporation, a GC often plays a unique role; not only is she looked to as the company’s
legal officer, but she may also be expected to take part in business discussions or operations.219 A
GC may frequently serve as a sounding board regarding business activities, whether at the request
of the CEO or some other officer, or as a member of the company’s top management team.220
When performing this dual role as business advisor and legal advocate, a GC should be careful to
avoid inadvertently waiving attorney-client privilege. The risks of such dual roles are discussed
more fully in “Compliance Officer and General Counsel: Benefits and Pitfalls of Combining Roles,”

71
ACC InfoPAK (Sept. 2010), available at

http://www.acc.com/legalresources/resource.cfm?show=995124.
B. Attorney-Client Privilege
Attorney-client privilege also presents unique challenges to a company’s general counsel. Unlike
their law firms peers, in-house attorneys cannot always assume that by virtue of their being a
lawyer the attorney-client privilege will be upheld. GCs generally face two major challenges to the
assertion of the privilege:
• The first regards their role (i.e., whether they are acting in the capacity of an attorney or
a business person). Privilege may not apply where an attorney is found to be acting in a
non-legal role. See Georgia-Pacific Corp. v. GAF Roofing Mfg. Corp. NO. 93 Civ. 5125 (RPP)
(S.D.N.Y. Jan. 25, 1996) (Ordering in-house counsel to respond to deposition questions,
because his actions as negotiator of contract terms constituted business judgments
divorced from legal advice and therefore were not protected by attorney-client privilege
under New York law.)
• The second regards their advice (i.e., whether it was legal advice or business advice).
Note, however, that in-house counsel’s legal advice to her board of directors may be
privileged even though the board uses such legal advice to make business decisions. See
Kelly v. Ford Motor 110 F.3d 954 (3d Cir. 1997) (General counsel’s legal advice provided
to Board is protected by attorney-client privilege even if used as basis of business
decision, and work product produced by agents of company’s attorneys is protected
even if developed for, or in anticipation of, litigation in another suit).
The seminal case on the attorney-client privilege for in-house counsel is Upjohn Co. v. United States,
449 U.S. 384 (1981). The following elements make up the Upjohn rule for applying the privilege in
the in-house setting:
a) communication between counsel and employee;
b) at the direction of the employee's superior so corporation could obtain legal advice;
c) employee aware that communication is for the purpose of seeking legal advice;
d) communication concerned matters within the scope of employee's duties;
e) information sought not available from the upper echelon management and needed to
supply legal advice; and
f) communication was confidential when made and kept confidential thereafter.221

C. Multijurisdictional Practice
Another potential hurdle for a general counsel is the fact that each state’s Right to Practice Rules
may affect the ability of in-house attorneys to adequately represent the client in different
jurisdictions. The current rules may prevent an attorney admitted to the bar in a particular state
from working as the GC for a corporation situated in a different state or from representing the
client’s interests another state. A first general counsel can review the “Right to Practice Rules” for
each US jurisdiction on ACC’s Advocacy webpage, at http://advocacy.acc.com.
Many argue that these jurisdictions’ various rules governing the practice of law by in-house
corporate counsel amount to a patchwork of half measures, which no longer have a rational basis,
do not serve the public interest, undermine attorney mobility and impinge on the ability of
corporations to hire the most qualified attorneys.222 For this reason, ACC and others regularly
advocate for broader and more expeditious rules on multijurisdictional practice.223 Until such time
as changes can be effected however, a GC must analyze whether there are any jurisdictional
conflicts or issues concerning their licenses and the company’s business needs.

73
IX. Sample Forms

A. General Counsel Job Description
Mission
As a senior vice president of XYZ Company and a member of the executive management team, the
general counsel is functionally responsible for legal affairs for the entire enterprise.
The general counsel acts as the legal advisor to the board of directors, the chairman of the board
and chief executive officer, the president, chief operating officer, the executive vice president, and
other senior executives of XYZ Company.
Pursuant to the "Management Control Process," he/she has the responsibility and obligation to
identify, develop, communicate, and monitor policies which will ensure compliance with law by
the entire enterprise.
The incumbent has the responsibility for assuring the availability, continuity and quality of
competent, timely, and cost-efficient legal services throughout the function.
Role
There is in fact a dual role which consists of being the principal legal advisor for the XYZ
Company board of directors and senior management and being responsible for the corporate-wide
legal function.
This position has a major role in providing legal advice in areas of significant company-wide
impact, in the formulation of the corporate strategic plan, in the evaluation of new ventures,
acquisitions, mergers, divestments, and in major investment proposals.
The general counsel must maintain oversight responsibility in law related areas of significant
company-wide impact, as well as direct involvement in policy matters outlined in the
"Management Control Process." Also, where overlap or irreconcilable conflict involving legal
matters occurs between two or more operating units, the general counsel by necessity must
become involved in assuring that an acceptable resolution is achieved.
Other General Counsel roles include:

1. Reporting manager of the assistant general counsel and the corporate secretary.
2. Formulation and involvement in administration of corporate policies involving law,

such as "Conflict of Interest" and "Standards of Business Conduct."

3. Assurance to directors and officers of corporate legal compliance per "Management

Control Process."
4. Counseling on legislation and government relations.
5. Ensuring of career development for corporate-wide legal staff.
6. Inputting to operating unit management in the performance appraisal and salary

administration of operating unit chief counsel.
7. Seeking input from operating unit management as to the quality, timeliness, and
responsiveness of legal support.
8. Seeking input from operating unit chief counsel as to the quality, timeliness, and
responsiveness of Radnor law department legal support.
The general counsel concentrates his activities on providing advice and guidance to the senior
executive staff and board of directors. To properly fulfill these responsibilities, there is a need for
the general counsel to delegate numerous tasks to the assistant general counsel such as the
management of the ABC Company law department and ongoing communication with subsidiary
chief counsels.
B. Sample Mission Statement224

We seek to use the law to advance the business of XYZ Company.
The Legal Department is the principal legal advisor to the Chief Executive Officer and has the
responsibility for managing all of the legal affairs of XYZ Company.
The Legal Department is dedicated to:
• Ensuring that the business affairs of XYZ Company are carried out promptly and in
compliance with ethical standards, existing laws and administrative regulations, and in
a manner which minimizes the likelihood of adverse publicity arising from disputes or
lawsuits.
• Representing the interests of XYZ Company in resolving disputes, claims or lawsuits

against it, in a manner, which is both economical and consistent with the best business
and ethical interests of the company.
• As a service unit within XYZ company, the Legal Department will respond quickly and
efficiently to requests from management for legal advice and service.
The Legal Department plays three primary roles as:

75
1. An integral member of the management team.
2. A participant in decision-making processes, offering both legal and strategic business

advice.
3. A manager of legal affairs within the entire organization.
Legal services will be provided by a mix of In-House and outside counsel. In-House Counsel will
be employed when it is cost justified and in the best interests of the organization.
When it is necessary to engage outside counsel, the General Counsel will retain the highest quality
outside law firms, within proper cost-control guidelines, and supervise their work closely to
ensure that the company’s objectives are met and that outside counsel fees and expenses are
reasonable and proper.
To accomplish this mission, the Legal Department will:
• Be responsible for all corporate legal matters.
• Act as legal consultant to XYZ Company management.
• Participate in corporate policy development.
• Be responsible for all litigation.
• Establish a corporate-wide, consistent policy for the retention, management and

evaluation of outside counsel.
• Be responsible for reviewing and amending, as appropriate, the company’s policies for
Business Conduct, Legislation and Lobbying, Contract Preparation, Risk Management,
Fraud Investigation, Corporate Compliance, Intellectual Property Law and
Litigation/Legal Support.
C. Client Satisfaction Survey

The Law Department is sending this questionnaire to you, one of our important clients, to obtain
your views regarding our performance. Your ratings are important measures for us as we evaluate
how we are doing and how we should improve.
Before completing this questionnaire, please understand the rating system in the box below. After
you have completed the questionnaire, please return it as soon as possible, but not later than [two
weeks to reply], to [consulting firm], the consulting firm that is assisting us with this survey. To
complete the survey, log onto [consulting firm]’s secure website, using the password “XYZ
Corporation” and your first initial and last name, e.g., scook, as the user code.

XYZ International
Client Evaluation of the Legal Function

Client Name:_____________________________________ Date: ________________
Department / Organization: ________________________________________________
My contact with the law department, over the last year, has been:
~ Regular (Monthly) ~ Irregular (twice a year) ~ No Contact ~ Other, please explain
XYZ Law Department -‐ Client Survey
1. How available are the lawyers when you need them?
Totally Unavailable Always Accessible

1 2 3

2. How responsive are the lawyers in addressing your business and legal issues?
Advice Bears Advice has

No Relationship Pinpoint Accuracy
To My Problem
1 2 3

3. How fast are the lawyers in providing you what you asked for or need?
Extraordinarily Exceptional Turn-‐

Slow around Time
1 2 3

4. Do the lawyers provide advice and rationale in a way that is clear, concise, intelligible and useful?
Never Always
1 2 3

77
5. How helpful are the lawyers in finding solutions to problems?
Not Helpful Exceptionally

At All Helpful
1 2 3

6. Do the lawyers demonstrate, on a consistent basis, the level of expertise that you want your counsel to
have?
No Always
1 2 3

7. How do you rate the quality of the lawyers’ work product?
Poor Excellent
1 2 3

8. How proactive are the lawyers in anticipating issues and working to avoid problems?
Reactive Only Always Proactive

1 2 3

9. How good have the lawyers been in helping you and your business avoid problems that could have had legal
or financial risks?
Poor Excellent
1 2 3

10. Are the lawyers active, accepted members of the business team?
No Absolutely
1 2 3

11. Do the lawyers project personalities that inspire trust, approachability, candor?

Not at Yes,

All Definitely
1 2 3

12. How effectively (quality and costs) do the lawyers manage outside counsel
Ineffective Excellent
1 2 3

13. What is your overall satisfaction level with the Law Department?
Disappointed Excellent
1 2 3

14. We encourage you to provide additional observations and comments that will assist us in meeting your
legal needs:
___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________________________
___
(Please attach additional comments, as appropriate)
I: ~ would like a meeting to discuss this evaluation
~ do not require a meeting at this time
~ I would like the consultants to maintain my confidentiality and not share this survey with the law
department members
~ I authorize the consultants to share a copy of this response with the appropriate members of the law
department
Please return this form by __________, in confidence, to: _________________________
THANK YOU FOR YOUR FEEDBACK

79
APPENDIX – Criteria for Lawyer Progression

Guidelines,
Knowledge Years of
Clients
Position of Problem Solving Scope of Management / Experience
Grade Legal Skills Standards Relations /
Title Company / Abilities Work Supervision Since
Interaction
Industry Admission
to Bar
Counsel Some Understands basics of Can handle routine Informed, Can May manage / 2 – 8 Years
knowledge defined specialties tasks with little reliably directly supervise
required supervision accurate and affect paraprofessionals
Drafts routine
including diplomatic Company’s
documents and
strategic in client objectives
negotiates routine
business meetings and
matters unaided
values and direction
objectives
Senior Detailed Solid grasp of defined Can handle routine Can reliably Can May manage / 6 – 9 Years
Counsel knowledge specialties, plus good tasks without counsel directly supervise

of strategic understanding of supervision; can important affect paraprofessionals
business concepts, rules and solve some difficult clients Company’s
values and issues in major related problems with strategic
objectives specialties minimal objectives
supervision and
Can draft all documents
direction
and negotiate matters Exhibits good
needed with little people skills and a
guidance basic business
sense and
Good analyst, advocate
awareness of the
and presenter of legal
industry
points

Guidelines,
Knowledge Years of
Clients
Interaction
Industry Admission
to Bar
Assistant Detailed Reliable and versatile Can handle all Can reliably Directly May manage 9 + Years
General knowledge practitioner across all major problems in counsel all affects other attorneys

Counsel of strategic major areas of specialty practice area decision Company’s on a defined
business without making strategic project basis
Broad and deep
values and supervision; shows clients and objectives
expertise enhanced by
objectives initiative and executives and
considerable experience
advanced people direction
in major issues and
skills in team
matters
problem solving
Needs no significant situations
professional guidance
Exhibits sound
Superior draftsman, business sense and
analyst, negotiator and industry
presenter of legal points knowledge
Associate Intimate Reliable and versatile Can handle all Can reliably Directly Manages the legal 9 + Years
General knowledge practitioner across major problems in counsel all affects affairs of a section
Counsel of major areas of practice practice area clients Company’s of a practice area
corporate without strategic
Broad and deep Supervises all
direction supervision; shows objectives
expertise enhanced by attorneys,
and initiative and and
considerable experience paralegals and
strategic advanced people direction
in major issues and support staff
business skills in team
matters
values and problem solving
objectives Needs no professional situations
guidance
Exhibits sound
Superior draftsman, business sense and
analyst, negotiator and industry

81
Guidelines,
Knowledge Years of
Clients
Interaction
Industry Admission
to Bar
presenter of legal points knowledge

X. About ACC
The Association of Corporate Counsel (ACC) is a global bar association that promotes the
common professional and business interests of in-house counsel who work for corporations,
associations and other private-sector organizations through information, education,
networking opportunities and advocacy initiatives.
We anticipate and understand the needs of the in-house bar; help members deliver services
to their corporate clients efficiently; promote the value of in-house services; influence the
practice of law as it affects the in-house bar; and deliver a mix of relevant, timely services
including information, education, networking, and advocacy.
With more than 30,000 members employed by over 10,000 organizations in more than 75
countries, ACC connects its members to each other and to the people and resources necessary
for their personal and professional growth.
Members of ACC enjoy a number of valuable benefits, including:

• In-person and online networking opportunities through 54 chapters and 18
committees, plus blogs, Member-to-Member Community (including eGroups)
• A subscription to the award-winning ACC Docket, our monthly journal featuring
articles written by corporate counsel on issues you face daily
• Numerous continuing education opportunities, such as online courses, webcasts and
other educational events
• A daily newsfeed with updates on a range of legal topics, completely customizable by
topic and jurisdiction
• Access to the ACC In-house Jobline, the premier electronic employment resource for
in-house jobseekers and employers;
• Access to a comprehensive library of legal resources including sample forms and
policies, checklists, articles and surveys; and
• Discounts and direct access to useful litigation and matter management tools and
resources through the ACC Alliance, a partnership with top-tier legal and business
service providers.
For more information, visit us at www.acc.com

83
XI. Additional Resources
http://www.acc.com/legalresources/resour
A. ACC Docket Articles ce.cfm?show=1277470.
Mark Roellig, “I Just Became a General Tiffani R. Alexander, “General Counsel

Counsel: What Should I Do Next?,” ACC Roundtable Discussion: CLO's Role as
Docket 30, no. 2 (Mar. 2012): 52, available at Strategic Leader, Trusted Advisor & Problem
http://www.acc.com/legalresources/resour Solver,” ACC Docket 29, no. 1 (Jan. 2011): 80,
ce.cfm?show=1303337. available at
Mark Roellig and David M. Love III, “So You ce.cfm?show=1268001.
Want to Be a General Counsel? How to
Maximize Your Chances,” ACC Docket 30, no. Mark Roellig, “Making Your Legal
1 (Jan. 2012): 72, available at Organization a Strategic Asset for the
http://www.acc.com/legalresources/resour Business,” ACC Docket 28, no. 2 (Mar. 2010):
ce.cfm?show=1299486. 62-68, available at
Amy E. Hutchens, “Wearing Two Hats — In- ce.cfm?show=805483.
house Counsel and Compliance Officer,”
ACC Docket 29, no. 9 (Nov. 2011): 66, available Alfred Coleman, “New to In-house: Increase
at the Size and Productivity of Your Legal
http://www.acc.com/legalresources/resour Department For Free,” ACC Docket 27, no. 6
ce.cfm?show=1295329. (July 2009): 26, available at
Whitnie Henderson, “New to In-house — ce.cfm?show=424043.
Give Time, Get Time,” ACC Docket 29, no. 9
(Nov. 2011): 20, available at J. Martin Acevedo, “New to In-house: 10
http://www.acc.com/legalresources/resour Lessons on Building and Leading a New
ce.cfm?show=1295340. Small Law Department: Part Two,” ACC
Docket 26, no. 9 (Nov. 2008): 18-19, available at
Greg Wharton and Robert A. Major, Jr., “Fast- http://www.acc.com/legalresources/resour
Growth GCs: What It Takes to Succeed,” ACC ce.cfm?show=86791.
Docket 29, no. 8 (Oct. 2011): 70, available at
http://www.acc.com/legalresources/resour Jeffrey D. Paquin, “Tips & Insights: Law
ce.cfm?show=1292376. Department Management with Jeffrey
Paquin,” ACC Docket 26, no. 4 (May 2008): 90-
Todd H. Silberman, “Small Law — Starting 97, available at
Over ... Again,” ACC Docket 29, no. 3 (Apr. http://www.acc.com/legalresources/resour
2011): 22, available at ce.cfm?show=14341.
ce.cfm?show=1279916.
B. InfoPAKs
Vicken B. Bayramian, “The General Counsel
as a Strategic Thinker,” ACC Docket 29, no. 2 “ACC Value Challenge Practices for the Small
(Mar. 2011): 22, available at Law Department,” ACC InfoPAK (Mar.

2012), available at available at

http://www.acc.com/legalresources/resour http://www.acc.com/legalresources/resour
ce.cfm?show=1304804. ce.cfm?show=1240418.
“Technology Primer,” ACC InfoPAK (June “How to Find the Right Technology Tools to
2011), available at Use in Your Small Law Department,” ACC
http://www.acc.com/legalresources/resour Webcast (Oct. 2010), available at
ce.cfm?show=19671. https://westlegaledcenter.com/program_gui
de/course_detail.jsf?courseId=30965912&sc_c
“Compliance Officer and General Counsel: id=ACC_ws.
Benefits and Pitfalls of Combining Roles,”
ACC InfoPAK (Sep. 2010), available at “How to Find the Right Technology Tools to
http://www.acc.com/legalresources/resour Use in Your Small Law Department,” ACC
ce.cfm?show=995124. Presentation (Oct. 2010), available at
“Effective Compliance and Ethics for the ce.cfm?show=1237282.
Small Law Department - Doing More With
Less,” ACC InfoPAK (Aug. 2010), available at “In-house Counsels' Role from an External
http://www.acc.com/legalresources/resour Lawyers' Perspective,” ACC Presentation
ce.cfm?show=19635. (June 2010), available at
“Role of the General Counsel,” ACC InfoPAK ce.cfm?show=1262939.
(Sep. 2009), available at
http://www.acc.com/legalresources/resour “Risk Management: The Role of Corporate
ce.cfm?show=700992. Counsel in a Changing World,” ACC
Presentation (Jan. 2010), available at
“Strategic Planning: Why a Plan Is Needed http://www.acc.com/legalresources/resour
and How to Develop One,” ACC InfoPAK ce.cfm?show=797347.
http://www.acc.com/legalresources/resour “The Counsel's Role in the Ethics &
ce.cfm?show=699365. Compliance Programs,” ACC Webcast (Oct.
2009), available at
https://westlegaledcenter.com/program_gui
C. Program Materials de/course_detail.jsf?courseId=24194171&sc_c
id=ACC_ws.
“Basic Financial Analysis,” ACC Presentation
(May 2012), available at “The Counsel's Role in the Ethics &
http://www.acc.com/legalresources/resour Compliance Programs,” ACC Presentation
ce.cfm?show=1310930. (Oct. 2009), available at
“How to Optimize Processes - Speed Up
ce.cfm?show=736638.
Contracts, Cut Outside Counsel Fees & Close
Cases,” ACC Webcast (Sep. 2011), available at “How to Set Up a Legal Department in a New
http://webcasts.acc.com/detail.php?id=1586 Market from the Ground Up,” ACC
05&go=1. Presentation (Oct. 2009), available at
“Develop Your Own Guidelines for Retaining
ce.cfm?show=736913.
Outside Counsel (from the SLD
perspective),” ACC Presentation (Oct. 2010),

85
“Translating Big Firm/Big Department “Outside Counsel Retention Agreements,”

Innovation into Small Law Success,” ACC ACC QuickCounsel (Sep. 2011), available at
Presentation (Oct. 2009), available at http://www.acc.com/legalresources/quickc
http://www.acc.com/legalresources/resour ounsel/ocra.cfm.
ce.cfm?show=739305.
“Top Ten Tips for Running an Efficient
“Passion-Powered! Tips to Fuel Your Inhouse International Legal Department,” ACC Top
Career or Jump Start a New One,” ACC Ten (Dec. 2010), available at
Presentation (Oct. 2009), available at http://www.acc.com/legalresources/public
http://www.acc.com/legalresources/resour ations/topten/Top-Ten-Tips-for-Running-an-
ce.cfm?show=731188. Efficient-International-Legal-
Department.cfm.
“Orientation to In-House Practice,” ACC
Presentation (May 2009), available at “The Role of In-House Counsel: Global
http://www.acc.com/legalresources/resour Distinctions,” ACC QuickCounsel (Sep. 2010),
ce.cfm?show=358059. available at
http://www.acc.com/legalresources/quickc
“Increase Your Department’s Impact With an ounsel/troicgd.cfm.
Intern Program,” ACC Presentation (Dec.
2007), available at “Counsel for Closely-Held Corporations: Top
http://www.acc.com/legalresources/resour Ten Ways to Juggle Your Many Roles without
ce.cfm?show=16334. Dropping the Ball,” ACC Top Ten (May
2009), available at
“Metrics to Creating & Fostering a Successful http://www.acc.com/legalresources/resour
Law Department,” ACC Presentation (Apr. ce.cfm?show=217295.
2007), available at
ce.cfm?show=20047. E. Other ACC Resources
“Leadership Skills for New General Counsel “2011 Small Law Department Compensation
& Managing Attorneys,” ACC Presentation Survey,” ACC Survey (Nov. 2011), available at
(Apr. 2004), available at http://www.acc.com/legalresources/resour
http://www.acc.com/legalresources/resour ce.cfm?show=1296039.
ce.cfm?show=20422.
“2011 CLO Survey,” ACC Survey (Oct. 2011),
available at
D. Quick References http://www.acc.com/legalresources/resour
“Top Ten Things a New Nonprofit GC
Should Investigate,” ACC Top Ten (Nov. “Establishing and Maintaining the Right
2011), available at Relationship Between the General Counsel
http://www.acc.com/legalresources/public and the Chief Compliance Officer -
ations/topten/nngcsi.cfm. Perspectives of Sven Holmes, KPMG,” ACC
Leading Practices Profile (Feb. 2011), available
“Electronic Billing – The Basics,” ACC at
QuickCounsel (Sep. 2011), available at http://www.acc.com/legalresources/resour
http://www.acc.com/legalresources/quickc ce.cfm?show=1276964.
ounsel/ebtb.cfm.

“Ensuring the Grass Will Be Greener:

Effectively Transitioning from a Private Law
Firm to a Corporate Legal Department,”
Article (Oct. 2010), available at
“Corporate Minute-Taking: A General

Counsel's Guide,” Article (Oct. 2009), available
at
ce.cfm?show=789968.
“The Role of the General Counsel in Canada:

Leading Practices in Law Department
Management,” ACC Leading Practices Profile
ce.cfm?show=691310.
“The Role of the General Counsel in Europe:

Leading Practices in Law Department
Management,” ACC Leading Practices Profile
ce.cfm?show=691365.

87
XII. Endnotes

13
Interview with Nicolas Vanasse, Vice President, Chief
1 Legal Officer and Corporate Secretary, Aveos Fleet
Throughout this InfoPAK the term “company” or Performance, Inc., July 27, 2011.
“corporation” will be intended to include all entities
14
represented by in-house counsel, including non-profit Interview with Nicolas Vanasse, July 27, 2011.
organizations, associations, and other such organizations, 15
Interview with Craig Long, General Counsel, Capital
while “in-house counsel” and “General Counsel” (“GC”)
Financial Service Corporation, July 22, 2011.
will be used interchangeably, unless specified otherwise.
16
2 Interview with Craig Long, July 22, 2011.
Rachel M. Zahorsky, “Changing Demands Have In-
17
House Counsel Gaining Over Outside Firms, GCs Say,” Interview with Nicolas Vanasse, Vice President, Chief
ABA Journal (Mar. 15, 2010), available at Legal Officer and Corporate Secretary, Aveos Fleet
http://www.abajournal.com/news/article/changing_deman Performance, Inc., July 27, 2011.
ds_have_in- 18
house_counsel_gaining_over_outside_firms_gcs_say/. Interview with Craig Long, July 22, 2011.
19
3
Many titles represent steps up the hierarchy of corporate Interview with Maria Pasquale, Senior Vice President
levels. For example, an “Executive Vice President & Legal & Chief Counsel, Celgene Corporation, July 25,
General Counsel” is generally more senior than a “Senior 2011.
Vice President & General Counsel.” 20
4
“The Value and Benefits of In-House Counsel,” ACC Financial Service Corporation, July 22, 2011.
InfoPAK (Feb. 2006), available at 21
Interview with John Smith, General Counsel & Senior
http://www.acc.com/legalresources/resource.cfm?show=1 Vice President, Insurance Company, Aug. 3, 2011.
9631, excerpted from Jonathan P. Bellis, “The Evolving 22
Role of In-House Counsel: Adding Value to the Interview with John Smith, General Counsel & Senior
Business,” LEGAL DIRECTOR, February 2003. Vice President, Insurance Company, Aug. 3, 2011.
5 23
Id. Interview with John Smith, General Counsel & Senior
6
Vice President, Insurance Company, Aug. 3, 2011.
For more information on the Mini-MBA program and 24
similar courses, please see ACC’s “Business Education Id.
for In-House Counsel” webpage at 25
Id.
http://www.acc.com/education/businessedu/index.cfm.
26
7 Interview with Craig Long, General Counsel, Capital
“Managing Value-Based Relationships with Outside
Counsel,” ACC InfoPAK (Aug. 2011), available at
27
http://www.acc.com/legalresources/resource.cfm?show=1 Interview with John Smith, General Counsel & Senior
9673; see also “Applying Project Management to Legal Vice President, Insurance Company, Aug. 3, 2011.
Matters,” ACC Webcast (May 13, 2010), available at 28
http://www.acc.com/education/webcasts/projectmanagem Interview with Nicolas Vanasse, Vice President, Chief
enttolegalmatters.cfm. Legal Officer and Corporate Secretary, Aveos Fleet
Performance, Inc., July 27, 2011.
8
Interview with Craig Long, General Counsel, Capital 29
Financial Service Corporation, July 22, 2011. Id.
30
9
Interview with Craig Long, General Counsel, Capital Interview with Nicolas Vanasse, Vice President, Chief
Financial Service Corporation, July 22, 2011. Legal Officer and Corporate Secretary, Aveos Fleet
10 Performance, Inc., July 27, 2011.
For purposes of anonymity, we have used the
31
pseudonym “John Smith” for all references to this Id.
individual throughout the InfoPAK. 32
Id.
11
Interview with John Smith, General Counsel & Senior 33
For additional information on the roles and
Vice President, insurance company, Aug. 3, 2011.
responsibilities mentioned below, please see “Role of the
12
Interview with John Smith, Aug. 3, 2011. General Counsel,” ACC InfoPAK (Sept. 2009), available
at


http://www.acc.com/legalresources/resource.cfm?show=7 http://www.acc.com/valuechallenge/; see also “Outside
00992 and “The Value and Benefits of In-House Counsel Retention Agreements,” ACC Quick Counsel
Counsel,” ACC InfoPAK (Feb. 2006), available at (Sep. 2011), available at
http://www.acc.com/legalresources/resource.cfm?show=1 http://www.acc.com/legalresources/quickcounsel/ocra.cf
9631, “ACC Value Challenge Practices for the Small Law m.
Department,” ACC InfoPAK (Mar. 2012), available at 39
http://www.acc.com/legalresources/resource.cfm?show=1 “Value Practice: Demonstrating the Law Department’s
304804, “Managing Value-Based Relationships with Value: Calculating In-house Counsel Costs,” ACC Value
Outside Counsel,” ACC InfoPAK (Aug. 2011), available Practice (May 2009), available at
at http://www.acc.com/legalresources/resource.cfm?show=2
http://www.acc.com/legalresources/resource.cfm?show=1 33481.
9673, “The Role of the General Counsel in Canada: 40
“Benchmarking and Best Practices in Managing In-
Leading Practices in Law Department Management,” House Law Departments,” Altman Weil, Inc. (May 7,
ACC Leading Practices Profile (Sept. 2009), available at 2003), available at
http://www.acc.com/legalresources/resource.cfm?show=6 http://www.altmanweil.com/dir_docs/resource/affeafa6-
91310, “The Role of the General Counsel in Europe: ea74-4742-b008-f94d30b647d8_document.pdf.
Leading Practices in Law Department Management,” 41
ACC Leading Practices Profile (Sept. 2009), available at Interview with Maria Pasquale, Senior Vice President
http://www.acc.com/legalresources/resource.cfm?show=6 Legal & Chief Counsel, Celgene Corporation, July 25,
91365. 2011.
34 42
“ACC Value Challenge Practices for the Small Law Interview with Maria Pasquale, July 25, 2011.
Department,” ACC InfoPAK (Mar. 2012), available at 43
http://www.acc.com/legalresources/resource.cfm?show=1 Interview with Nicolas Vanasse, Vice President, Chief
304804, “Managing Value-Based Relationships with Legal Officer and Corporate Secretary, Aveos Fleet
Outside Counsel,” ACC InfoPAK (Aug. 2011), available Performance, Inc., July 27, 2011.
at 44
“Adding Value: Strategic Planning and Demonstrating
http://www.acc.com/legalresources/resource.cfm?show=1 Success,” ACC Presentation (May 2011), available at
9673. http://www.acc.com/legalresources/resource.cfm?show=1
35
Please visit ACC’s Compliance Training Portal at 288495.
www.acc.com/compliance for more information. 45
“Strategic Planning: Why a Plan is Needed and How to
36
For further information on corporate governance, see Develop One,” ACC InfoPAK (Sept. 2009), available at
“Governance: Crisis Management & Risk Management in http://www.acc.com/legalresources/resource.cfm?show=6
the Boardroom,” ACC Webcast (Feb. 2, 2012), available 99365 (see Section I(H) on identifying metrics to measure
at http://webcasts.acc.com/detail.php?id=664058&go=1; progress).
see also “Corporate Governance and In-house Counsel” 46
“Legal Department Leading Practices for Adding Value
Corporate Secretary (Apr. 6, 2011), available at and Moving Beyond the Cost Center Model” ACC
http://us1.campaign- Leading Practices Profile (Sept. 2010), available at
archive2.com/?u=025665a58234f217acb943372&id=48f4 http://www.acc.com/legalresources/resource.cfm?show=1
716b4b#krebs. 6804.
37
Additional information can be found at “Crisis 47
“Top Ten Things to Consider When You’re the First
Management in Litigation and Investigations: Parallel In-House Counsel,” ACC Top Ten (June 2009), available
Proceedings, Competing Stakeholders, and Multiple at
Venues in a Global Environment” ACC InfoPAK (July http://www.acc.com/legalresources/publications/topten/to
2011), available at p-top-things-to-consider.cfm; “Adding Value: Strategic
http://www.acc.com/legalresources/resource.cfm?show=7 Planning and Demonstrating Success,” ACC Presentation
7428; “Crisis Management and the Role of In-house (May 2011), available at
Lawyers: Company Leading Practices” ACC Leading http://www.acc.com/legalresources/resource.cfm?show=1
Practices Profile (June 2011), available at 288495.
http://www.acc.com/legalresources/resource.cfm?show=1
48
6813; “Checklist for Crisis Management Planning” ACC Interview with Nicolas Vanasse, Vice President, Chief
List (Apr. 2003), available at Legal Officer and Corporate Secretary, Aveos Fleet
http://www.acc.com/legalresources/resource.cfm?show=1 Performance, Inc., July 27, 2011.
6744. 49
“Sample Memorandum of Understanding,” ACC Form
38
Additional information can be found on the ACC Value & Policy (Oct. 2006), available at
Challenge page of the ACC website, available at

89

66
http://www.acc.com/legalresources/resource.cfm?show=1 This list can be found at: D. C. Toedt III ET AL.,
2725. “GC Rules: Over 350 things I wish I’d known my
50 first year as General Counsel,” ACC Docket 23, no.
Interview with Craig Long, General Counsel, Capital 5 (May 2005): 1-25, available at
Financial Service Corporation, July 22, 2011. http://www.acc.com/legalresources/resource.cfm?sh
51
James A. Nortz, “Business Ethics — Be Careful ... You ow=16997.
May Get What You Ask For,” ACC Docket 22, no. 1 (Jan. 67
Interviews with Maria Pasquale, Senior Vice President
2011), available at Legal & Chief Counsel, Celgene Corporation, July 25,
http://www.acc.com/legalresources/resource.cfm?show=1 2011, and Nicolas Vanasse, Vice President, Chief Legal
267366. Officer and Corporate Secretary, Aveos Fleet
See Tanina Rostain, General Counsel in the Age of
Compliance: Preliminary Findings and New Research 68
Questions, 21 GEO. J. LEGAL ETHICS 465, 474 (2008) Legal Officer and Corporate Secretary, Aveos Fleet
(“Consistent with their claims about corporate culture, Performance, Inc., July 27, 2011.
several [general counsel] insisted that reputational
69
considerations were often as important as legal ones.”). See Part II(B)(1), supra; see also “The Value and
53
Benefits of In-House Counsel,” ACC InfoPAK (Feb.
Interview with Maria Pasquale, Senior Vice President 2006), available at
Legal & Chief Counsel, Celgene Corporation, July 25, http://www.acc.com/legalresources/resource.cfm?show=1
2011. 9631.
54
“Top Ten Things to Consider When You’re the First 70
See Part II(B)(1) & (2).
In-House Counsel,” ACC Top Ten (June 2009), available 71
at Interviews with Craig Long, General Counsel, Capital
http://www.acc.com/legalresources/publications/topten/to Financial Service Corporation, July 22, 2011, and Nicolas
p-top-things-to-consider.cfm. Vanasse, Vice President, Chief Legal Officer and
55
Corporate Secretary, Aveos Fleet Performance, Inc., July
Id. 27, 2011.
56 72
Id. ACC Newsstand can be accessed at
57
Interview with Craig Long, General Counsel, Capital http://www.lexology.com/?about=&b=acc.
Financial Service Corporation, July 22, 2011. 73
58
“The First Year – A Dozen Things on the ‘To Do’ Vice President, Insurance Company, Aug. 3, 2011, Craig
List,” ACC Quick Reference (Aug. 2010), available at Long, July 22, 2011, and Maria Pasquale, July 25, 2011.
http://www.acc.com/legalresources/resource.cfm?show=9 74
Interview with Maria Pasquale, Senior Vice President
90624. Legal & Chief Counsel, Celgene Corporation, July 25,
59
See id. 2011.
75
60
Id. Interviews with Maria Pasquale, July 25, 2011, and
Nicolas Vanasse, July 27, 2011.
61
Interview with Maria Pasquale, Senior Vice President 76
ACC’s Member-to-Member online platform, including
Legal & Chief Counsel, Celgene Corporation, July 25,
the eGroups, can be accessed at www.acc.com/m2m; see
2011.
also “Networking Opportunities for Solo General
62
Id. Counsel,” ACC Article (Aug. 2011), available at
63 http://www.acc.com/aboutacc/newsroom/accinthenews/N
Interview with Maria Pasquale, Senior Vice President etworking-Opportunities-for-Solo-General-Counsel.cfm.
77
2011. Interview with Maria Pasquale, July 25, 2011.
64 78
Interview with Nicolas Vanasse, Vice President, Chief Interview with Nicolas Vanasse, July 27, 2011.
Legal Officer and Corporate Secretary, Aveos Fleet 79
Performance, Inc., July 27, 2011. Interviews with Maria Pasquale, July 25, 2011, and
John Smith, Aug. 3, 2011.
65A new general counsel can use a site such as 80
www.10kwizard.com to easily retrieve/download relevant “2011 CLO Survey,” ACC Survey (Oct. 2011),
SEC filings. available at
294806 (ACC conducts the CLO Survey every year).


81 97
See the 2011 Empsight Law Department Compensation See “Role of the General Counsel,” ACC InfoPAK
Surveys (Nov. 2011), available at (Sept. 2009), available at
http://www.acc.com/legalresources/resource.cfm?show=1 http://www.acc.com/legalresources/resource.cfm?show=7
296033 (large company edition), 00992.
Id.
296036 (mid-market edition), and
99
http://www.acc.com/legalresources/resource.cfm?show=1 “ACC 2011 In-House Counsel Census Report,” ACC
296039 (small law department edition). Survey (Feb. 2012), available at
82 http://www.acc.com/legalresources/resource.cfm?show=1
“Top Ten Tips for Assessing Your Department’s
306363.
Alignment to Your Corporate Strategy,” ACC Top Ten
100
(Mar. 2012), available at Id.
http://www.acc.com/legalresources/publications/topten/ttt 101
Id.
faydatycs.cfm.
102
83 Id.
Id.
103
84 Id.
“Strategic Planning: Why a Plan is Needed and How to
104
Develop One,” ACC InfoPAK (Sept. 2009), available at Id.
99365. Interview with Craig Long, General Counsel, Capital
85
“Top Ten Tips for Assessing Your Department’s 106
Alignment to Your Corporate Strategy,” ACC Top Ten Interview with John Smith, General Counsel & Senior
(Mar. 2012), available at Vice President, Insurance Company, Aug. 3, 2011.
http://www.acc.com/legalresources/publications/topten/ttt 107
Id.
faydatycs.cfm. 108
Interviews with Craig Long, General Counsel, Capital
86
Id. Financial Service Corporation, July 22, 2011, Catherine
87
Id. Valentine, VP Legal & General Counsel, Logitech, Inc.,
July 29, 2011, and Maria Pasquale, Senior Vice President
88
This list is adapted from one that is available in Legal & Chief Counsel, Celgene Corporation, July 25,
“Strategic Planning: Why a Plan is Needed and How to 2011.
Develop One,” ACC InfoPAK (Sept. 2009), available at 109
Interview with Craig Long, July 22, 2011.
110
99365. Interview with Nicolas Vanasse, Vice President, Chief
D. C. Toedt III ET. AL, “GC Rules: Over 350 things I
wish I’d known my first year as General Counsel,” ACC
111
Docket (May 2005), available at Interview with John Smith, General Counsel & Senior
http://www.acca.com/protected/pubs/docket/may05/rules. Vice President, Insurance Company, Aug. 3, 2011.
pdf. Another sample mission statement is included in 112
Section VIII of this InfoPAK.
90
“Role of the General Counsel,” ACC InfoPAK (Sept. 2011.
2009), available at 113
Craig Long, General Counsel, Capital Financial
Service Corporation, July 22, 2011, Catherine Valentine,
00992.
VP Legal & General Counsel, Logitech, Inc., July 29,
91
“2011 CLO Survey,” ACC Survey (Oct. 2011), 2011, Nicolas Vanasse, Vice President, Chief Legal
available at Officer and Corporate Secretary, Aveos Fleet
http://www.acc.com/legalresources/resource.cfm?show=1 Performance, Inc., July 27, 2011, and John Smith,
294806. General Counsel & Senior Vice President, Insurance
92 Company, Aug. 3, 2011.
Id.
114
93 Interview with Nicolas Vanasse, Vice President, Chief
Id. Legal Officer and Corporate Secretary, Aveos Fleet
Id.
95 115
Interview with Catherine Valentine, VP Legal & See Part II(A)(3), supra.
General Counsel, Logitech, Inc., July 29, 2011. 116
96
Id. Vice President, Insurance Company, Aug. 3, 2011.

91

117 139
Interview with Nicolas Vanasse, Vice President, Chief Interviews with Nicolas Vanasse, Vice President,
Legal Officer and Corporate Secretary, Aveos Fleet Chief Legal Officer and Corporate Secretary, Aveos Fleet
Performance, Inc., July 27, 2011. Performance, Inc., July 27, 2011.
118 140
Interview with Nicolas Vanasse, Vice President, Chief See Interview with Catherine Valentine, VP Legal &
Legal Officer and Corporate Secretary, Aveos Fleet General Counsel, Logitech, Inc., July 29, 2011.
Performance, Inc., July 27, 2011. 141
For more information on the benefits of client
119
See Interview with John Smith, General Counsel & satisfaction surveys, see Karen M. Redford, “Lessons
Senior Vice President, Insurance Company, Aug. 3, 2011. Learned from Internal Client Satisfaction Surveys,” ACC
120 Docket 28, no. 7 (Sept. 2010): 22, available at
See Part IV(F), infra.
121
Interview with John Smith, General Counsel & Senior 87107.
Vice President, Insurance Company, Aug. 3, 2011. 142
Interviews with Nicolas Vanasse, Vice President,
122
See, e.g., Interview with John Smith, General Counsel Chief Legal Officer and Corporate Secretary, Aveos Fleet
& Senior Vice President, Insurance Company, Aug. 3, Performance, Inc., July 27, 2011, John Smith, General
2011. Counsel & Senior Vice President, Insurance Company,
123 Aug. 3, 2011, and Craig Long, General Counsel, Capital
143
124 Interview with Catherine Valentine, VP Legal &
See id. General Counsel, Logitech, Inc., July 29, 2011.
125
126
Id. 145
Interviews with Maria Pasquale, Senior Vice President
127
Interview with Catherine Valentine, VP Legal & Legal & Chief Counsel, Celgene Corporation, July 25,
General Counsel, Logitech, Inc., July 29, 2011. 2011, Craig Long, General Counsel, Capital Financial
128 Service Corporation, July 22, 2011, and John Smith,
See Part V(A)(5). General Counsel & Senior Vice President, Insurance
129 Company, Aug. 3, 2011.
Performance, Inc., July 27, 2011. Financial Service Corporation, July 22, 2011, and Maria
130
See id. Pasquale, Senior Vice President Legal & Chief Counsel,
131 Celgene Corporation, July 25, 2011.
Id.
147
132 Interview with Catherine Valentine, VP Legal &
Interviews with Nicolas Vanasse, Vice President, General Counsel, Logitech, Inc., July 29, 2011.
Chief Legal Officer and Corporate Secretary, Aveos Fleet
148
Performance, Inc., July 27, 2011. Interview with Maria Pasquale, Senior Vice President
133 Legal & Chief Counsel, Celgene Corporation, July 25,
Interview with Nicolas Vanasse, Vice President, Chief 2011; “ACC Primer - Using a Structured Process to
Legal Officer and Corporate Secretary, Aveos Fleet Allocate Work,” ACC Primer (Dec. 2010), available at
Performance, Inc., July 27, 2011. http://www.acc.com/legalresources/resource.cfm?show=1
134
Interview with Nicolas Vanasse, Vice President, Chief 217370
Performance, Inc., July 27, 2011. Legal & Chief Counsel, Celgene Corporation, July 25,
135
Interview with Craig Long, General Counsel, Capital 2011.
Financial Service Corporation, July 22, 2011. 150
136
Id. Legal & Chief Counsel, Celgene Corporation, July 25,
137
2011.
A first general counsel should have already considered
151
these issues when drafting a law department mission Interview with Maria Pasquale, Senior Vice President
statement. See Section IV(E), supra. Legal & Chief Counsel, Celgene Corporation, July 25,
138
2011.
See Part V(D), infra.
152


153
Interview with Craig Long, General Counsel, Capital http://www.acc.com/legalresources/resource.cfm?show=1
Financial Service Corporation, July 22, 2011. 294806.
154 170
Interview with John Smith, General Counsel & Senior “2011 CLO Survey” ACC Survey, at 26 (Oct. 2011),
Vice President, Insurance Company, Aug. 3, 2011. available at
294806.
171
156 “2011 CLO Survey” ACC Survey, at 21 (Oct. 2011)
Interview with Catherine Valentine, VP Legal &
available at
General Counsel, Logitech, Inc., July 29, 2011.
157
“ACC Primer - Using a Structured Process to Allocate 294806.
Work,” ACC Primer (Dec. 2010), available at 172
“2011 CLO Survey” ACC Survey, at 25 (Oct. 2011)
available at
217370
158
“ACC Primer - Using a Structured Process to Allocate 294806.
Work,” ACC Primer (Dec. 2010), available at 173
“Forecast for Legal Services - Corporations Have Cut
Legal Spending 1%,” Hildebrandt Baker Robbins (Oct.
217370
20, 2010), available at
159
This InfoPAK addresses budgeting more expansively http://www.lawmarketing.com/pages/articles.asp?Action=
than it does other business-oriented tasks due to the Article&ArticleCategoryID=7&ArticleID=1091.
complexity of budgeting and its high degree of 174
“Forecast for Legal Services - Corporations Have Cut
importance to the work of many general counsel.
Legal Spending 1%,” Hildebrandt Baker Robbins (Oct.
160
Interview with Catherine Valentine, VP Legal & 20, 2010), available at
General Counsel, Logitech, Inc., July 29, 2011, and Maria http://www.lawmarketing.com/pages/articles.asp?Action=
Pasquale, Senior Vice President Legal & Chief Counsel, Article&ArticleCategoryID=7&ArticleID=1091.
Celgene Corporation, July 25, 2011. 175
“2011 CLO Survey” ACC Survey (Oct. 2011)
161
Interview with Maria Pasquale, Senior Vice President available at
Legal & Chief Counsel, Celgene Corporation, July 25, http://www.acc.com/legalresources/resource.cfm?show=1
2011, and John Smith, General Counsel & Senior Vice 294806.
President, Insurance Company, Aug. 3, 2011. 176
“Law Department Cost Management,” Huron
162
Interview with John Smith, General Counsel & Senior Consulting Group, at 12 (June 1, 2009), available at
Vice President, Insurance Company, Aug. 3, 2011. http://www.huronconsultinggroup.com/researchdetails.as
163 px?articleId=2162.
177
Vice President, Insurance Company, Aug. 3, 2011. “Law Department Cost Management,” Huron
164 Consulting Group, at 3 (June 1, 2009), available at
See interview with Catherine Valentine, VP Legal &
http://www.huronconsultinggroup.com/researchdetails.as
General Counsel, Logitech, Inc., July 29, 2011.
px?articleId=2162.
165
“Law Department Cost Management,” Huron
Consulting Group, at 13 (June 1, 2009), available at
166
Interview with John Smith, General Counsel & Senior http://www.huronconsultinggroup.com/researchdetails.as
Vice President, Insurance Company, Aug. 3, 2011. px?articleId=2162.
167 179
“Law Department Cost Management,” Huron “Law Department Cost Management,” Huron
Consulting Group, at 12 (June 1, 2009), available at Consulting Group, at 13 (June 1, 2009), available at
http://www.huronconsultinggroup.com/researchdetails.as http://www.huronconsultinggroup.com/researchdetails.as
px?articleId=2162. px?articleId=2162.
168 180
“Law Department Cost Management,” Huron Interview with Nicolas Vanasse, Vice President, Chief
Consulting Group, at 12 (June 1, 2009), available at Legal Officer and Corporate Secretary, Aveos Fleet
http://www.huronconsultinggroup.com/researchdetails.as Performance, Inc., July 27, 2011.
px?articleId=2162. 181
Interview with Catherine Valentine, VP Legal &
169
“2011 CLO Survey” ACC Survey, at 22 (Oct. 2011), General Counsel, Logitech, Inc., July 29, 2011.
available at 182
Id.

93

183 196
Id.. Interview with Nicolas Vanasse, Vice President, Chief
197
2011. “The Value and Benefits of In-House Counsel,” ACC
185 InfoPAK (Feb. 2006), available at
“Top Ten Proven Tactics to Generate Cost Savings,”
ACC Top Ten (Dec. 2009), available at
9631.
http://www.acc.com/legalresources/publications/topten/pr
198
oventactics.cfm. Interview with Nicolas Vanasse, Vice President, Chief
Counsel,” ACC InfoPAK (Aug. 2011): 28-36 available at
199
http://www.acc.com/legalresources/resource.cfm?show=1 “2011 CLO Survey,” ACC Survey (Oct. 2011),
9673 available at
294806.
200
http://www.acc.com/legalresources/publications/topten/pr “2011 CLO Survey,” ACC Survey (Oct. 2011),
oventactics.cfm. available at
“Legal Departments Expecting More from Outside
294806.
Counsel,” Robert Half (June 2010), available at
201
http://www.acc.com/legalresources/resource.cfm?show=9 Interview with Nicolas Vanasse, Vice President, Chief
51472. Legal Officer and Corporate Secretary, Aveos Fleet
202
Counsel,” ACC InfoPAK (Aug. 2011): 24-25 available at Interview with Maria Pasquale, Senior Vice President
http://www.acc.com/legalresources/resource.cfm?show=1 Legal & Chief Counsel, Celgene Corporation, July 25,
9673 2011.
190 203
“Managing Value-Based Relationships with Outside Charles A. Volkert, “Utilizing Paralegals, Legal
Counsel,” ACC InfoPAK (Aug. 2011): 24-25 available at Support Staff and Project Teams to Achieve Cost Savings
http://www.acc.com/legalresources/resource.cfm?show=1 and Enhance Productivity,” ACC Article (Apr. 2009),
9673 available at
Excerpted from “Sample Document—Outside Counsel
98529; John Morrow et al, “Recruiting, Retaining &
Guidelines,” ACC Form & Policy (Sept. 2008), available
Developing Top In-House Talent” ACC Docket 27, no. 6
at
(July 2009), available at
0433.
22517.
192
“Sample Document—Outside Counsel Guidelines,” 204
Charles A. Volkert, “Utilizing Paralegals, Legal
ACC Form & Policy (Sept. 2008), p. 7, available at
Support Staff and Project Teams to Achieve Cost Savings
and Enhance Productivity,” ACC Article (Apr. 2009),
0433.
available at
193
“Outside Counsel Retention Agreements,” ACC http://www.acc.com/legalresources/resource.cfm?show=1
QuickCounsel (Dec. 2009), available at 98529.
http://www.acc.com/legalresources/quickcounsel/ocra.cf 205
“2011 CLO Survey” ACC Survey, at 15 (Oct. 2011),
m.
available at
194
“Managing Value-Based Relationships with Outside http://www.acc.com/legalresources/resource.cfm?show=1
Counsel,” ACC InfoPAK (Aug. 2011): 10-11 available at 294806.
Id.
9673
207
195 “2011 CLO Survey” ACC Survey, at 15 (Oct. 2011),
available at
http://www.acc.com/legalresources/publications/topten/pr
294806.
oventactics.cfm.


208
“2012 Salary Guide,” Robert Half Legal, at 5,
available at
http://www.roberthalflegal.com/FreeResources.
209
“2011 CLO Survey” ACC Survey, at 15 (Oct. 2011),
available at
294806.
210
Id. at 16.
211
Id.
212
available at
213
available at
214
“2012 Salary Guide,” Robert Half Legal, at 13-14,
available at
215
See Part II(A)(3).
216
217
Id.
218
See “Compliance Officer and General Counsel:
Benefits and Pitfalls of Combining Roles,” ACC InfoPAK
(Sept. 2010), available at
95124.
219
See Part V(A).
220
See id.
221
For more information on the attorney-client privilege
as it applies to in-house counsel, see “Attorney-Client
Privilege,” ACC InfoPAK (Jan. 2006), available at
9681.
222
John Okray, “Multijurisdictional Practice: Know Your
Roaming Charges,” ACC Docket 29, no. 1 (Jan. 2011),
available at
266762.
223
See ACC Advocacy’s multijurisdictional practice
archives at http://advocacy.acc.com/tags/mjp-2/; see also
John Okray, “Multijurisdictional Practice: Know Your
Roaming Charges,” ACC Docket 29, no. 1 (Jan. 2011),
available at
266762.
224
Additional sample mission statements are available at
www.acca.com/vl.php.

Establishing In-House Legal Dept

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What challenges does the first general counsel of an organization face?

What challenges does the first general counsel of an organization face?

What guidance does this document provide for establishing an in-house legal department?

What guidance does this document provide for establishing an in-house legal department?

By in-house

Establishing the In-House Law

Association of Corporate Counsel

Copyright © 2012 Association of Corporate Counsel

II. Understanding the Role of a First General Counsel ...................................................................... 7

A. Company Expectations ......................................................................................................................................... 7

1. General Expectations .......................................................................................................................... 7

2. Understanding Company-Specific Expectations ........................................................................ 10

3. Managing Expectations .................................................................................................................... 12

B. What Can a First General Counsel Offer? ................................................................................................... 15

1. Key Roles of In-House Counsel .................................................................................................... 15

2. Quantifying Benefits and Demonstrating Law Department Value ........................................ 17

III. Getting Started as the First General Counsel ............................................................................. 21

A. Codify Expectations ........................................................................................................................................... 21

B. Understand Company Culture ........................................................................................................................ 22

C. Learn About Your Company’s Business Operations.................................................................................. 23

1. Observe the Operations ................................................................................................................. 24

2. Talk to Managers and Department Heads .................................................................................. 24

3. Look Through Files .......................................................................................................................... 25

4. Identify the Most Influential Company Executives .................................................................... 25

5. Read Corporate Documents and Public Filings ......................................................................... 25

D. Learn About Your Company’s Industry, Market, and Strategy ................................................................ 26

1. Industry Knowledge ......................................................................................................................... 27

2. Competitor Knowledge .................................................................................................................. 28

3. Company Strategy and Direction ................................................................................................. 29

4. Business Unit Strategy and Direction .......................................................................................... 30

E. Promulgate a Law Department Mission Statement .................................................................................... 31

F. Establish Reporting Relationships.................................................................................................................... 32

1. To Whom Does the General Counsel Report? ........................................................................ 32

2. Which Functions Report to the General Counsel? .................................................................. 34

For more ACC InfoPAKs, please visit http://www.acc.com/infopaks

G. Creating Company Policies .............................................................................................................................. 35

H. Suggested Timeline of Priorities for the First Year..................................................................................... 36

IV. Building Client Relationships ......................................................................................................... 38

A. Openly Communicate with Clients ................................................................................................................ 38

B. Market the Law Department ........................................................................................................................... 39

1. Introducing and Explaining Law Department Processes.......................................................... 39

2. Conveying a Law Department Culture ....................................................................................... 40

C. Set the Right Law Department Standards ..................................................................................................... 41

1. Demonstrate a Willingness to Assume Risk .............................................................................. 41

2. Run an Approachable, Open-Door Department ...................................................................... 41

3. Set the Standard for Excellence .................................................................................................... 42

D. Measure and Increase Client Satisfaction ...................................................................................................... 42

1. Surveying Client Satisfaction .......................................................................................................... 42

2. Increasing Client Satisfaction ......................................................................................................... 42

V. Identifying and Managing Responsibilities .................................................................................... 43

A. Overview of Typical Business and Legal Responsibilities .......................................................................... 43

1. Legal Responsibilities ....................................................................................................................... 43

2. Business Responsibilities ................................................................................................................. 44

B. Prioritizing Work ................................................................................................................................................ 44

1. Needs Assessment ........................................................................................................................... 45

2. Prioritization of Needs .................................................................................................................... 46

1. Overcoming Preliminary Budgeting Challenges ......................................................................... 46

2. Developing a Budgeting Process ................................................................................................... 47

3. Sticking to the Budget...................................................................................................................... 53