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GCs expect more from commercial relationships
New research indicates that, with increasing demands placed upon general counsel to take more strategic and commercial approaches to their work, law firms must understand the challenges facing GCs in order to better collaborate and achieve results.
Jerome Doraisamy
The State of Australian Corporate Law Departments Report 2019, produced by Thomson Reuters in collaboration with Acritas, explored themes impacting the role of general counsel that are currently emerging in a changing legal marketplace.
“Commercial and strategic thinking are key drivers of the best performing firms. Understanding the true nature of the client’s business and being able to respond with commercial acumen and strategic thinking is becoming a crucial skill for private practice to master,” the report said.
As those GCs are “increasingly expected to be a more strategic, commercial partner to the business”, the burden is on law firms “to truly understand the challenges” facing GCs and in-house clients and adapt to the way in which they service clients.
“When firms deliver more strategic and commercial legal advice and support – as opposed to taking a black letter law technical approach – it creates true differentiation to their offering,” the report noted.
“General counsel require strategic business advisors and are drawn to firms and partners who truly grasp their needs and Australian general counsel in particular are far more likely to favour firms that demonstrate commercial nous.”
However, though eager to work with commercial advisers, many GCs are of the opinion that they are “not receiving the desired level of commercial acumen or investment from law firms”, the report continued.
“Beyond hourly rate reduction, being more commercial, strategic and solutions-oriented were the key areas highlighted for law firms to improve in order to increase client satisfaction.”
“In addition, demonstrating a commercial understanding of the client’s business, their industry and commercial nous/business pragmatism are areas in which general counsel want law firms to hone and develop their skills,” it said.
The report also found that, in the wake of the banking royal commission, 48 per cent of general counsel are looking to redesign their working practices.
In addition, it noted that while corporate counsel across Australia want to drive efficiency and generate more value to suppliers, they are adopting less technology than the global average.
Jerome Doraisamy
Jerome Doraisamy is the editor of Lawyers Weekly. A former lawyer, he has worked at Momentum Media as a journalist on Lawyers Weekly since February 2018, and has served as editor since March 2022. He is also the host of all five shows under The Lawyers Weekly Podcast Network, and has overseen the brand's audio medium growth from 4,000 downloads per month to over 60,000 downloads per month, making The Lawyers Weekly Show the most popular industry-specific podcast in Australia. Jerome is also the author of The Wellness Doctrines book series, an admitted solicitor in NSW, and a board director of Minds Count.
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