Tuesday, April 2, 2013

Intimacy?


“Intimate” might at first seem like a funny word to describe the in-house attorney’s relationship with his corporate client.  But what is intimacy in the context of in-house lawyering?  According to Dictionary.com: Intimacy is “a close association with or detailed knowledge or deep understanding of a place, subject, period of history, etc.”

So, intimacy is really quite an appropriate word to describe the important relationship an in-house lawyer has with his client.  Because of our professional obligations, we cannot help but have a “close association” with our clients. As in-house lawyers, we also strive for a detailed and deep knowledge and complete mastery of our businesses.  

When people ask me why I chose to work in-house, one of the reasons I offer is my desire for a higher level of intimacy with the client - a higher level than can be achieved as an outside lawyer.  As an “embedded” legal executive, I am with the business people on a day to day basis.  I sit with the top executives, participate in policy making meetings and on committees formed to address issues in various disciplines, attend marketing presentations and sales meetings and work closely with the purchasing, risk management, marketing, finance, audit, human resources, accounting departments and the board.  But even more importantly, I have the opportunity to see the warehouse, tour the plant, visit the loading dock and the quality control labs.  An in-house lawyer has a unique opportunity to learn the entire business from the bottom up.

Many companies today require executives to spend time in the manufacturing facility, at the retail store, on the production line, in the research lab, manning the grill or working some other front-line job to help them understand how the business operates.  If your company does not do this, then you should be proactive about doing it yourself.  Knowing the ins and outs of your business is essential in making you a better lawyer for the business.

When you know the business inside out, it is easier to: defend cases, draft contracts that better address the unique needs of your business, appreciate the human resource climate, understand the culture and know what is important to the business.  Most importantly, it becomes much easier to be proactive and provide value in ways the business might not expect from their lawyer.

For example, a lawyer friend of mine from another company was called by the president of one of the operating companies he supports when a customer approached the president about jointly creating a new product.  My lawyer friend's company is not an R&D company; it manufactures a low tech product sold on the commodity market.  Because my friend is embedded in the business, he knows it very well.  His clients, including the president, know how engaged he is and thus regularly consult him on a myriad of legal and non-legal matters.  The president called him as soon as she hung up the phone with the customer.  My friend sat in on the initial meeting with the business folks and the potential partner and was able to identify several very important potential pitfalls that were not even on the president’s radar screen.  My legal friend helped craft an agreement that protected his company from the pitfalls as well as ensure proper ownership in the potentially profitable jointly developed product.

In short, the lawyer who knows his business is a better team member and a much more valuable asset to the company than a lawyer who does not.  In order to be a good team member, the lawyer must be focused on cooperation and coordinate his effort with the group.  Of course, a successful team member must understand how the team works and, ultimately, the final goal of the team.  Becoming “intimately” involved with your business gets you and your team to the goal line and beyond.

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