Page 10 - CCCA62_2009

CCCA_V3No2_Dept-Performance-FIN.qxd:CCCA_V1No2_Dept-MgLaw-V1.qxd 4/27/09 3:40 PM Page 10 Performance In The Law Department The global legal department Improving effectiveness in turbulent times. t is more often the case that law what should be the value-added contri- cross-border initiatives. Idepartments are part of companies that bution of a “Canadian” law department There are three tests that predict the operate in more than one national juris- with global interests. Still, there are sever- likelihood of a good alignment by the law diction. At times, manufacturing and dis- al irreducible characteristics of a “best in department with corporate objectives. tribution are situated outside the head- class” law department.These include: First, the top five priorities of the law quarters country. Such global legal department are the same as the targets of departments are familiar names across • an adjustable strategic purpose, its business units. Second, at least 50% of corporate Canada: Pratt & Whitney, SAP, • effective leadership and management, the law department’s resources are dedi- GE, McDonald’s, John Deere, American • powerful relationships with internal cated to meeting these priorities or key Express, Ricoh, and Rio Tinto Alcan, to users, projects.Too often, we find that corporate name a few. Others are headquartered in • motivational people processes, and counsel are mired in day-to-day support Canada and have extensive activity else- • an aligned internal environment. activity and cannot get free to be mean- where, including CN, Petro-Canada, ingfully involved in strategic business unit TransCanada, Bombardier Aerospace, These are rare to find in the law depart- priorities. The third test is whether the Tesco,Agrium and Sun Life. ments of start-up companies or in one annual plan for the department is reduced However, globalization of business has with significant turnover and instability at to writing. resulted in the consolidation of many the business level. In addition, there is no A September 2008 Catalyst Consulting Canadian companies for a number of correlation between the size of the law survey of ten global legal departments industries such as mining, energy, forestry department and whether it is a top-per- showed that all but one was formally and technology.The result is that the HQ forming legal department. Smaller depart- aligned with global and corporate business and the corporate legal department are ments such as those of Kraft Canada, plans in the way the annual priorities were located outside Canada. Perhaps Canada’s Virgin Mobile and DuPont Canada draw set out.These departments passed the first markets are too small to sustain a success- on a wealth of resources from the global and third tests, but it is not clear whether ful company for very long and to insulate legal department.They are well positioned the majority of their resources are deployed them from global competition. to contribute at all points in the spectrum, against these priorities. Law departments ISTOCKPHOTO One size does not fit all when deciding from operational support to strategic, rarely have the working protocols and the 10 CCCA Canadian Corporate Counsel Association SUMMER 2009