Page 126 - MASTER COPY LEADERS BOOK 9editedJKK (24)_Neat
P. 126
Leaders in Legal Business
is a one-off situation and it’s an exception, or is this a cultural issue that we need to address, or
something that hasn’t been well enough communicated or compiled within the organization that
needs a broader effort. That’s very important.
– Board member of several global companies
The report further stated that the counseling role goes beyond simply providing legal counsel; the GC also
serves as a trusted advisor to the CEO and the board. GCs must perform a delicate balancing act between being
trusted and active members of the management team (i.e., having a “seat at the table”) and maintaining their
independence.
To effectively serve in this advisory role, future GCs will need to possess the managerial courage to say
“no,” even when it is unpopular, according to the survey. Most importantly, they will need to have excellent
communication skills and emotional intelligence to ensure they are constructive in their assessment of risk and
rewards in a business context. In addition, GCs must build credibility and respect with their executive peers, which
is influenced by the degree to which they demonstrate the third essential GC skill: strategist.
The Highest-Performing GCs Add Value by Serving as Strategists
Perhaps the most striking finding in the study was the growing importance of the GC role as a strategist.
Both GCs and corporate directors viewed strategic input as becoming a larger source of added value in the role of
general counsel. However, there was a disconnect between GCs and directors when it comes to the GC’s
contribution of strategic input: GCs were much more likely than directors to rate the GC’s role in providing
strategic input into business decisions as being in the top three sources of added value, both now and in the future
(see Figure 4). This difference in opinion may be especially important given a distinction directors make when
evaluating the performance of their GCs. According to directors, the highest-performing GCs add value by
contributing strategic advice.12
Figure 4
GCs More Likely than Directors to Rank
Strategic Input as Top Three Value-
Driver
GCs/CLOs Directors
71%
62%
37%
27%
Now 5-10 years
12 Supra note 7, at 8. 119
is a one-off situation and it’s an exception, or is this a cultural issue that we need to address, or
something that hasn’t been well enough communicated or compiled within the organization that
needs a broader effort. That’s very important.
– Board member of several global companies
The report further stated that the counseling role goes beyond simply providing legal counsel; the GC also
serves as a trusted advisor to the CEO and the board. GCs must perform a delicate balancing act between being
trusted and active members of the management team (i.e., having a “seat at the table”) and maintaining their
independence.
To effectively serve in this advisory role, future GCs will need to possess the managerial courage to say
“no,” even when it is unpopular, according to the survey. Most importantly, they will need to have excellent
communication skills and emotional intelligence to ensure they are constructive in their assessment of risk and
rewards in a business context. In addition, GCs must build credibility and respect with their executive peers, which
is influenced by the degree to which they demonstrate the third essential GC skill: strategist.
The Highest-Performing GCs Add Value by Serving as Strategists
Perhaps the most striking finding in the study was the growing importance of the GC role as a strategist.
Both GCs and corporate directors viewed strategic input as becoming a larger source of added value in the role of
general counsel. However, there was a disconnect between GCs and directors when it comes to the GC’s
contribution of strategic input: GCs were much more likely than directors to rate the GC’s role in providing
strategic input into business decisions as being in the top three sources of added value, both now and in the future
(see Figure 4). This difference in opinion may be especially important given a distinction directors make when
evaluating the performance of their GCs. According to directors, the highest-performing GCs add value by
contributing strategic advice.12
Figure 4
GCs More Likely than Directors to Rank
Strategic Input as Top Three Value-
Driver
GCs/CLOs Directors
71%
62%
37%
27%
Now 5-10 years
12 Supra note 7, at 8. 119
