From Legal Expert to Strategic Partner: Understanding the Role of the General Counsel in Business Strategy

The role of the General Counsel (GC) has evolved significantly beyond traditional legal responsibilities. GCs are now pivotal in strategic decision-making and are expected to exhibit a high level of business acumen. For HR directors, understanding this shift is crucial in fostering a collaborative environment where legal and business strategies align.

Understanding GCs' Business Acumen

Strategic Thinking

GCs are strategic thinkers who consider the broader implications of legal decisions on business operations. HR directors should appreciate this perspective and consult GCs in strategic planning, especially when it involves changes in policy or significant HR initiatives.

Financial Acumen

Many GCs possess a keen understanding of financial implications related to legal actions. HR can leverage this expertise in budgeting for settlements, insurance, and other HR activities that have legal and financial overlaps.

Industry Knowledge

GCs often have deep insights into the industry’s challenges and trends. HR can benefit from this knowledge by aligning HR strategies with industry-specific challenges, particularly in recruitment, training, and compliance.

Recruiting the Right Strategic Mindset: Tips for Interviewing

Define Strategic Competencies

Before the interview process begins, clearly define what strategic competencies are necessary for the role. These might include business acumen, risk management capabilities, crisis handling skills, and the ability to influence and communicate strategic decisions. Having a clear list of these competencies will help in crafting targeted interview questions and assessing candidates effectively.

Behavioral Interview Techniques

Use behavioral interview questions to understand how candidates have previously handled situations that required strategic thinking and decision-making. Questions could include:

  • "Can you describe a time when you developed a legal strategy that had a significant impact on your previous organization’s business?"

  • "Tell us about a complex merger or acquisition you managed. What was your approach, and how did you align it with the company’s broader strategic objectives?" These questions help reveal the candidate’s thought processes and their ability to integrate legal and business perspectives.

Scenario-Based Questions

Present hypothetical scenarios that are relevant to your business and ask the candidates how they would handle them. This could involve navigating regulatory changes, managing a corporate crisis, or leading a negotiation with major stakeholders. These scenarios will help you gauge the candidate's strategic thinking, problem-solving skills, and readiness to handle real-world challenges.

Assess Understanding of Business and Industry

A strategic-minded GC should have a solid understanding of the specific industry in which your company operates. Assess candidates on their knowledge of industry trends, key challenges, and competitive dynamics. This can be achieved by asking:

  • "How do you see the current trends in [industry] affecting our legal strategy?"

  • "What are the biggest legal challenges facing our industry today, and how would you address them?"

Panel Interviews

Incorporate a panel interview format where candidates meet with key stakeholders from different departments, such as finance, operations, and executive leadership. This approach not only provides a holistic view of the candidate’s interpersonal and communication skills but also allows other departments to weigh in on the strategic compatibility of the candidate with the organization’s goals.

Fostering Collaboration Between HR and the GC

Regular Communication

Establish regular meetings and communication channels between HR and the GC’s office. This ensures that both departments are aligned and can quickly address emerging issues.

Joint Training Sessions

Organize joint training sessions on topics like compliance, ethics, and risk management. These sessions can enhance understanding and cooperation between the two functions.

Strategic Projects

Involve the GC in strategic HR projects from the outset. Their input can provide valuable legal perspectives and help shape projects to better meet organizational goals.

Conclusion

The role of the General Counsel has transformed into one of a strategic partner who possesses substantial business acumen. For HR directors, embracing this evolution is vital. By understanding and integrating the GC's strategic approach and business insights, HR can enhance its effectiveness and contribute more significantly to the organization’s success. Through collaboration and mutual understanding, both HR and the GC can navigate the complexities of the modern business environment more efficiently and with greater impact.

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