Smith, who has moved from private to in-house practice over the past two years, has significantly increased the financial industry`s focus on retaining her internal colleagues since her appointment, especially as the “big resignation” – the phenomenon observed since 2021, in which a large number of employees have left their jobs or are looking to move – is intensifying competition for top talent. The need to develop a strong business conscience is probably the most important piece of advice GC received when it asked business consultants what they wish they had known when they first entered the house. And it takes a number of different forms. It`s a cliché that lawyers aren`t good at numbers, but maybe the problem goes even further. In-house lawyers need to adapt to a revenue-driven mindset – the idea that every decision has a financial impact. Being able to talk to the CFO on an equal footing is an important goal for new hires, and there is a growing trend for lawyers to study for an MBA or similar business qualification before making the leap into business, or even during their tenure. There is a sense that law schools are improving their range of business studies, although most agree that there is still a long way to go in this regard. Given the general orientation of the global legal services market, it is not surprising that the domestic legal movement has increasingly migrated eastward to the UK and Europe. Over the past two decades, many aspects of the U.S. model of law firm organization and practice – due to the focus on large, full-service law firms with entrepreneurial lawyers closely linked to business interests – known as “cravathism” – have also crossed the Atlantic. Of course, one wonders if there are still significant differences between general American or Anglo-American business practices and a “distinct European way of producing law,” which is a hybrid blend of cravathism and norms and practices traditionally found in many European countries.
Nevertheless, it is clear that large American-style law firms now hold a dominant position in large parts of Europe. It is therefore understandable that lawyers and clients, who are increasingly imbued with the American model of advocacy in the context of law firms, are also open to the integration of the American model of internal advocacy. Many departments see the value of hiring more versatile lawyers who can advise the firm in several areas of law, while giving the department flexibility and giving legal teams the ability to respond dynamically to changing circumstances. This trend towards more in-house counsel has been reinforced by corporate scandals such as Enron, WorldCom and Parmalat and the resulting new regulatory requirements. These events have convinced many European companies of the value of a robust in-house legal department capable of anticipating and avoiding these regulatory pitfalls. However, a 2010 decision of the Court of Justice of the European Union (CJEU) confirming that in-house lawyers are not entitled to professional secrecy underlines that the project of professionalism of in-house lawyers in Western Europe is far from complete. (In recent years, a number of EU member states have challenged the CJEU`s decision, with some national courts, such as Belgium`s, categorically rejecting it.) “Internal teams around the world are adapting to a more flexible model, so ALSPs are a huge asset for us,” he says. “There are more traditional ALSPs, such as accounting firms with a legal arm, that we continue to use, and we are open to new service providers coming to market as long as they meet expectations for quality and quantity, etc.” Goldman Sachs Group Inc. hired Kathryn Ruemmler of Latham & Watkins to replace former general counsel Karen Seymour. who returned to Sullivan & Cromwell. Bank of America Corp.
has promoted Lauren Mogensen to succeed its longtime general counsel, David Leitch, and Citigroup Inc. has hired Brent McIntosh of the Treasury to succeed outgoing legal group head Rohan Weerasinghe. With this transition, in-house legal departments can expect to focus more resources on issues that are most important to the business as a whole (cybersecurity, regulation/compliance, and privacy), or that are likely to pose the greatest challenges to their organizations (industry-specific regulations, privacy regulations, policy changes, such as mergers and acquisitions).