Historically, the general counsel had a clear mandate: Offer legal opinion on corporate strategy, provide transactional legal support, and manage corporate filings and board minutes. Success was defined by the provision of legal services to the company, while keeping costs down.
But in the digital business era, characterized by accelerated business change and legal uncertainty, the general counsel requires a strategic perspective and cross-functional visibility that is critical to company success. The following developments not only accelerate demand for legal services but, more importantly, increase the importance of the general counsel:
- Growing value of legal assets—A company’s strategy and value depend on its intellectual property (IP), data rights and permissions, partnerships and reputation.
- Proliferation of gray areas—New technologies and markets have less-well-defined legal and social boundaries, a development that blurs the distinction between legal and business guidance.
- Increasing returns for corporate speed and agility—Rapidly changing business strategies increase and change the need for and pace of legal support in relation to acquisitions, divestitures, new markets and regulations.
- Persistent regulatory fragmentation—Legal and regulatory frameworks fragment as more countries assert their place in the global regulatory and economic environment, and enforcement activity is driven by populist and other political agendas.
- Rise of social and investor activism—Pressure from consumers and investors has heightened scrutiny of corporate social, environmental, political and governance practices.
