The best of both worlds: being a law firm General Counsel

The best of both worlds: being a law firm General Counsel (GC)

Introduction

In today’s article, we explore the growth of the law firm GC role, how it is rapidly transforming into a standalone career path within the wider legal profession, and the skillset and mindset required to succeed. 

We also look at how the law firm GC function is evolving as law firms find themselves grappling with numerous challenges - from climate change to Artificial Intelligence (AI), the mental health and wellbeing crisis within the industry, as well as wider geopolitical tensions and economic instability.

Finally, we offer some advice and guidance to lawyers interested in exploring this exciting career path – whether coming from a private practice or corporate in-house legal background.

The law firm GC role: a unique kind of in-house legal function

As the title of this article suggests, the law firm GC role straddles the middle ground between private practice and corporate in-house legal - hence law firm GCs could be said to get the best of both worlds.

Much like a traditional in-house lawyer, a law firm GC has only one client and therefore enjoys developing a deep-seated knowledge of and closeness to the business and taking on managerial and strategic functions in addition to his/her primary role as legal advisor. All this while keeping one foot firmly in the world of private practice, working alongside fellow lawyers and being part of the buzz and excitement of the legal services sector.

The day-to-day work of a GC requires flexing different muscles. At a macro level, GCs act as an important link between the firm’s leadership and its risk and compliance function. On a micro level, the role is constantly expanding, as GCs juggle a variety of responsibilities, such as managing claims against the firm, complying with SRA and other regulatory requirements, overseeing the firm’s insurance policies, delivering compliance training, explaining the firm’s risk management processes to prospective clients, and much more.

How will the law firm GC role develop in the future?

While there isn’t a great deal of data on how many law firms have created a specific GC function within the last five years, there has been a general trend towards the expansion of the law firm in-house legal and risk and compliance function.

There are now 6% more solicitors working in-house in England and Wales compared to a decade ago [1], and in 2023, 38% of corporate Chief Legal Officers planned on expanding their in-house legal teams [2]. At Cyan Partners, we have helped several law firms appoint their General Counsel and have seen many firms gradually realise the value of having a distinct GC function within their businesses to help them manage ever more complex risks. 

The law firm GC role is becoming more established and is developing as a standalone career path, and as an alternative to the general corporate in-house legal function or private practice fee-earning career routes. Some law firms are already growing their in-house legal teams organically with a mix of senior and junior lawyers, giving lawyers at the start of their careers the opportunity to specialise as law firm legal counsel earlier in their careers. We have also seen a growing interest in fee-earning lawyers transitioning towards a legal counsel function within their existing (or new) firms, as they gain seniority in their careers.

The rise of fractional GCs is another growing trend shaped by the post-pandemic world of hybrid working. Fractional GCs work as independent consultants offering advice and support to their clients by mimicking the in-house legal and strategic functions of a traditional GC but on a more flexible basis. Fractional GCs are not tied to one organisation and can work with a variety of different clients. Because of this, they may occupy more of a high-level and strategic consultancy role rather than getting embroiled in everyday details. Fractional GCs within law firms are few and far between (it appears to be a role that is currently more suited to start-ups) – but it is possibly a trend to watch within the legal sector, especially as risks become more varied and complex meaning law firms may have to seek input from a variety of people with different specialisms.

Advice and guidance for interested lawyers

Holding the role of most senior legal adviser in an organisation full of other lawyers is not a role for the faint-hearted, and that’s why being a law firm GC can be an immensely challenging and rewarding experience at the same time.

Law firms are subject to additional regulatory requirements and face a growing array of risks compared to other types of businesses: think about the consequences of a data breach in a law firm, which holds highly sensitive and confidential information about its clients, or the implications of lawyers relying on less-than-perfect AI systems to facilitate the provision of advice or representation to their clients. The reality is that the stakes are high for law firms when something goes wrong.  

The law firm GC must therefore act as the bridge of the organisation – managing, overseeing, and anticipating the complex intersection of risks affecting the business, all while pursuing growth opportunities in a highly restricted and regulated environment.

Further, the law firm GC’s clients are other lawyers with a high level of legal expertise themselves. To add real value, the GC therefore needs to be both a generalist and a specialist with enough breadth and depth of legal knowledge to withstand scrutiny of his/her advice.

All in all, being a law firm GC is an exciting career. Junior to mid-level lawyers should consider transitioning into the in-house legal or risk and compliance department within a law firm early on in their careers, to build the skills and mindset required for this unique role.

For those lawyers at a more advanced stage of their private practice careers, taking on additional management responsibilities, in particular relating to how the firm manages risk, is a good way to develop a greater understanding of how law firms operate and the risks and challenges they face daily. This will help them develop the knowledge and soft skills required to be an effective law firm GC.

One of the core areas of expertise at Cyan Partners is helping law firms recruit GCs and entire in-house legal and risk and compliance teams. Our expert recruiters, Chris Cayley and Michelle Corneby, can help you find the right match, whether you’re a law firm looking to hire a GC, or a lawyer interested in exploring this exciting career path. Get in touch with us today for a no-obligation consultation.

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