Page 8 - CCCA Magazine Spring 2015

{ PerForMaNCe iN tHe law dePartMeNt } comFortaBle— or condItIon crItIcal? By Richard Stock in recent months, the Canadian economy has been stressed. csF: there is an effective strategy for the oil patch has signifcantly reduced its capital programs integrating lawyers with client/user management teams. and laid off employees. From target to tim Hortons, from Four elements support this factor: the governments of alberta and Quebec to the government ■ Signifcant business unit management teams include a lawyer as a participat- of Canada, employers are making structural, operating and ing member. fnancial adjustments in response to economic realities. ■ Lawyers have a formalized role in new product development processes. ■ Lawyers review and contribute to an- mployees are feeling vulnerable too. Each CSF should be assessed for compli- nual business plans. Law departments in every setting ance on a 10-point scale by scoring its con- ■ Legal teams review major policy deci- emust adjust their priorities, practices stituent elements. My report card follows. sions before they are announced. and resources—better to do so in antici- Law departments score better on this fac- pation of (rather than as a defensive reac- csF: there are trusting and effective tor than they did three years ago. Increas- tion to) change. working relationships with the ceo, ingly, business units have in-house counsel Law departments have come into their executive offcers and clients. attend their meetings and review major own over the last few decades. Internal cli- Five elements support this factor: policy decisions. However, they are seldom ents are used to having them around, as ■ The CLO has frequent dialogue with called upon to contribute to the units’ an- part of the fabric of the company. But are the CEO. nual plans on a systematic basis. The main they nimble enough? Are they just tend- ■ Executive offcers are briefed on the barrier is the limited availability of in- ing goal or on the front line seeking out steps the law department is taking to house counsel for projects other than ur- ways to add value? In many cases, the law align itself with company objectives gent legal work. Overall, Canadian law de- department has become too “comfortable” and business. partments score no more than 6 out of 10. with what it is doing and how it is doing it. ■ The CLO creates opportunities for law- It has been nearly 15 years since two yers to work with executive offcers. csF: the annual and long-range plans of dozen GCs gathered in New York City to ■ The CLO monitors the quality of the the law department are closely aligned set out what they then considered to be relationships between lawyers and ex- with corporate objectives. the Critical Success Factors (CSFs) for ecutive clients. Three elements support this factor: a progressive law department. Their 17 ■ Client satisfaction surveys are conducted. ■ Written annual and long-range plans CSFs were anchored by 52 constituent In general, I would not give Canadian with objectives are explicitly linked to elements or statements. Although the fac- law departments a higher score than 4 for corporate objectives. tors and elements need a little upgrading, this CSF. The highest mark is awarded for ■ Evidence exists that the legal team they are still relevant in many ways. In monitoring working relationships with works with clients to identify a joint tough economic times and diffcult work- executive clients. Client surveys are con- long-range plan. ing environments, the Chief Legal Offcer ducted by fewer than half of law depart- ■ The assumptions about legal issues (CLO) must ensure the business plan for ments—on an irregular basis. The other driving the business environment are the law department is up to the test. elements of this CSF are informal at best identifed in the plan. Six of the CSFs are particularly relevant and rarely documented. In summary, Most law departments have written an- to Canadian legal leadership. These factors law departments are much too passive nual plans. However, fewer than 20% also are equally important and worth consider- in managing internal relationships. They have written long-range plans and only ing along with their supporting elements. must take the time and effort to do so. some objectives are closely aligned with 8 CCCa Magazine | spring 2015 printeMps