Part 2: In-house lawyers - top developments for 2020

The role of the in-house lawyer has changed drastically in the last couple of decades - in a changing legal market and in order to ensure that your team stays ahead of the game, it is important to take note of key developments for legal departments.

In our first part of this 2-part series, we set out how the trend of lawyers seeking in-house counsel positions has changed over the last couple of decades, and also how law firms need to adapt to this changing legal market.

New developments for the role as an in-house lawyer are closely connected to the success of the team and therefore how efficiently they can collaborate with their company in order to drive business forwards. Many say that we live in an age of disruption, and a number of arguments can be made in favor of this statement when looking at the role of an in-house lawyer and what changes and trends which will affect this role in 2020.

Here we set out number of new and continuous trends for in-house lawyers to look out for in order to ensure a competitive edge:

1/ Technological developments.

The innovation within the technological industry is possibly the most prominent development in society today. The development of artificial intelligence, big data and new high-tech products has significantly disrupted many industries in the last couple of years, with the legal sector being one of them. The legal industry has long been seen as conservative and not willing to adapt to the use of new technologies, but the last couple of years has the industry of legal-tech developed from being a niche for particular tech-interested lawyers into an influential market actor. The in-house lawyer needs to follow the market developments so as to maintain their relevance and to adapt the company they are working in with a new technological eco-system. The in-house lawyers need to look at possibilities of automatization and digitizing of processes, data and information such as e-billing, e-signatures, e-processes and relevant use of machine – learning systems. They need to look at available and future technological systems that can predict and reduce risks for the business and implement and use big data analytics improving the efficiency within their company. 

2/ Not just legal advice.

As mentioned ins part 1 of this series, the role of the in-house lawyer has been strengthened in recent years because of the possibility to work in many different departments and gaining knowledge outside the pure legal sides of the business. Redefining the role of the in-house lawyer is a result of the revelation for the market actors. Having a flexible and integrated lawyer within the business that has a holistic view of the context the company is operating gives the business a competitive advantage in the market.

Both businesses and in-house lawyers have to strive and adopt to this change, by gaining the necessary overview knowledge, facilitate and adjust company structures so that the in-house lawyers can develop and adapt to the new commercial, technological and legal landscape.

Peter O’Connor, Legal Specialist, describes the required change in skillset for in-house lawyers by referring it a change from I-shaped to T-shaped lawyers. This metaphor describes a lawyer with a single focus, single specialist area and only providing legal advice (I-shaped), transforming into a lawyer that have the same area of expertise but is also able to provide commercially adapted advice by understanding other aspects and risks than the ones that are purely legal. 

3/ Increasing compliance requirements. We see a new commercial, technological and legal landscape erupting because of technological and societal changes. In particular has the area of compliance requirements increased drastically. New anti-money laundering and privacy legislation are two examples of highly resource intensive legislations that need serious attention by the businesses they affect.  The in-house lawyers must adjust to increasing complex legislative landscapes. Deploying new technologies is also relevant for mitigating this increasing risk. The new reg-tech (regulatory technology) industry is a result of the developing legal-tech industry, but also a direct result of the fast developing compliance requirements demanded on businesses. In-house lawyers must be able to quickly take advantage of innovation within the reg-tech industry. An additional demand one can see in relation to legislation, is the need for lawyers that have cross-border knowledge. Lawyers that can eliminate and address risk in relation to cross – border operations are highly valued and is a skillset relevant when companies are recruiting new in-house counsel or indeed when choosing external legal advisors to accompany their business on a day-to-day basis. 

4/ New relationships. Together with the requirement to understand the business as a whole, it is also important that in-house lawyers choose external legal advisors who can advise the business but who are also able to understand the commercial element and risks of the business. Competence and specific legal expertise (as well as cost) goes without saying, but it is key that in the choice of your external partners, that you can ensure a cultural fit by obtaining advice that it timely and appropriate and assists your daily workload, rather than adds a burden to it. It is important to look for innovative law firms with different fee structures, various offerings in terms of a accompanying you on daily matters or on key strategic projects - which can be as simple as agreeing the best mode of contact, or subject to professional rules, an external lawyer who will also agree to use your companies preferred communication channels (such as Slack or Zendesk) to receive instructions - ensuring a seamless approach and acting as a real business partner who can further, rather than disrupt, culture.

5/ New skills. Understanding the business and commercial side of the company is highly important. However, in addition to keeping on top of your ongoing legal training and developing your core knowledge and practice areas, development of additional human and soft skills are necessary to ensure your legal team remains relevant. Skills like design thinking, risk management, media training, staff training, and cross-sector teamwork ability are some of the soft skills in-house lawyers should strive to develop in the upcoming year. 

The key take away is that when leading an in-house team, you need to be vigilant in this age of disruption and take a close look at how your business and competitors are doing things at the moment - with a view on how you can adjust for the future.

Due to the fast changing technological, societal and economic developments will there certainly be a one or more aspects not mentioned in this article that the businesses and in-house lawyers need to take into account and adjust to on the spot in the upcoming year. We advise all actors to be dynamic, flexible and vigilant in 2020 and beyond, and not to hesitate to get in touch should you wish to discuss further!

Article by Anders Molander Skavlan @ Gerrish Legal, January 2020