The GC Decade
As a world of polycrisis becomes the norm, the GC is front and centre of the business solution. The GC’s unique skill set and overview make the coming years the decade of the in-house lawyer. The legal function, which touches every business activity in a multi-national, delivers both risk management and business growth perspectives that chief executives need to have. The need to look around corners, cited by Kent Walker when he was chief legal officer of Google in 2012, has become acute and most GCs will say their key role now is to horizon scan.
In 2022 we spoke to leaders of over 250 legal teams, as well as their c-suite colleagues. As GCs strategise in the management team and board room, heads of legal operations have toensure the legal function is fit for purpose and able to respond at light-speed, often course correcting in an instant. Legal functions have accelerated their digital transformation in response to ensure they can better manage the risks facing the business. They are becoming more resilient, agile and responsive.
Below we share the 6 Key Takeaways from our research. To find out how we can help your team understand the implications of The GC Decade, contact the RSGI team at information@rsgi.co.
THE INTERWOVEN WHEEL
The wine aroma wheel is a device that allows wine lovers to easily describe wine aromas and wine flavours. Invented in 1980, the wine aroma wheel is a visual representation of all the many flavours and aromas wine can possess.
The RSGI Interwoven In-House Legal wheel is a device that shows in one glance the variety and complexity of the role company legal departments play in global business.
At the core of the wheel – the hub, we say where we think legal functions are travelling to today, which is towards integrating with the purpose of the business and playing a role in shaping and moderating it.
The challenge of marrying protection with business enablement has got more complex over the last year due to a new world of polycrisis, which does not look set to end.
Legal’s 6 core activities are shown in the inner circle, and the outer circle describes their focus in 2023. In effect, what is the activity driving at and what is the essence of the activity.
- Leadership – Chief Horizon Scanner
- Strategy – Taking the Initiative
- Protection – Examining the WHY of the legal function
- Talent – Diverse and connected legal teams
- Purchasing – Balancing client-lawyer relationships
- Operations – Closing the gap between business and legal
THE TOP RISKS FACING BUSINESS
- Geopolitical: Trade and sanctions
- Cybersecurity and data privacy
- ESG
- Energy Transition
- Supply Chains
- Digital transformation
EMERGENCE OF THE SUPRA-TOPICS
These risks are long-term and overlapping. They signify a profound change in the business environment. Legal functions have to mobilise around them in a way that crosses business unit, traditional legal practice area and jurisdiction. For example, in the past 12 months, many legal departments have hired trade and sanctions lawyers and dedicated ESG specialists.
These risks or supra-topics are fast-moving and either fall completely into the legal function’s remit or touch it significantly. Legal’s critical input on all these topics contributes to the 2020s becoming the GC Decade.
6 Key Takeaways
1. LEADERSHIP
CHIEF HORIZON SCANNER
GCs are important c-suite leaders, right-hand to the CEO and tasked with giving the broad, long-term view that takes in geopolitics, sustainability and the reactions of all stakeholders.
2. STRATEGY
TAKING THE INITIATIVE
Front-line, proactive and closely involved in business design, the in-house lawyers are critical business partners, important contributors to the P&L and assessed on company / business unit performance.
3. PROTECTION
THE ‘WHY’ OF LEGAL
Balancing a complicated risk portfolio of business growth and protection sees legal reinterpret the purpose of the function to align it more closely with the company’s core values, actively course-correcting.
4. TALENT
DIVERSE & CONNECTED TEAMS
Legal functions are not just about lawyers. With the integration of data & digital experts, it is a changed corporate function compared to 5 years ago. Engagement is active, focused on empowering the individual and connecting a global team.
5. OPERATIONS
CLOSING THE GAP BETWEEN BUSINESS AND LEGAL
Legal operations and business operations are no longer separate. The legal team is integrating tech and data with the business and working faster in agile and cross-disciplinary teams.
6. PURCHASING
BALANCING LAWYER-CLIENT RELATIONSHIPS
Transparency of fees, relationships, origination credits, purchasing (including RFPs) is automated, streamlined and data driven, enabling better focus on what matters in the transaction.
To read the full report and find out how we can help your team understand the implications of The GC Decade, contact the RSGI team at information@rsgi.co