Let’s talk relationships
What makes a great in-house/private practice partnership? What do GCs want and expect from their law firms? And what’s the secret to becoming “one team” and creating value for both sides? Over to Centrica’s Ailsa Longmuir.
Let’s talk relationships
What makes a great in-house/private practice partnership? What do GCs want and expect from their law firms? And what’s the secret to becoming “one team” and creating value for both sides? Over to Centrica’s Ailsa Longmuir.
Ailsa Longmuir, General Counsel, Energy Marketing and Trading & Centrica Business Solutions, Centrica plc
ailsa.longmuir@centrica.com
What does a great in-house/private practice relationship look like?
Like in any life relationship, communication and expectation setting are crucial, and both must come from a place of honesty and openness. Continuous engagement is a good facilitator of all these things, and in particular, a proactive stance on both sides will aid this and save the relationship from being one that is purely on an “as needed” basis.
I would really recommend regular informal catch ups to build a good level of engagement between in-house and private practice lawyers. That way, when the crunch comes on a particular matter, you have a solid foundation on which to navigate thorny issues.
What do general counsel want and expect from their law firms, and has that changed with recent global events?
The dynamic between the GC and their panel firms is more important than ever. Centrica is a firm supporter of the O Shaped Lawyer (led by Dan Kayne), and as Centrica’s O Shaped Ambassador, I strongly examine how my firms deliver their advice in the context of the O Shaped principles – in particular, giving pragmatic commercial advice on a solution-based approach that is easy for me to digest and then communicate onwards to my stakeholders.
The pace of change of global events such as the Ukrainian invasion and subsequent sanctions have seen change on an almost daily basis, combined with the scrutiny of - and changing frameworks of - national and European energy regulation, means up-to-date advice has to be delivered from firms to the GC and then onto the business on demand in a way that is meaningful and useful to the day-to-day business delivery and to both short and long term strategy decisions.
On the other side, what do clients need to do to ensure they get the best from their law firms?
We need to be very clear on what the “ask” is. It can be easy to react in the moment and reach out to your trusted advisors, asking them to pivot on a legal matter (as in, say, a sanctions update) without taking the time to step back and reflect on what the actual ask is from a business perspective (Can we accept this specific LNG cargo and if not, what can we do? Where is the risk?).
In my view, the difference between a good and a great in-house lawyer is one who can not only provide the business with the options available in the legal framework of a given set of circumstances, but also to take that step further and provide a recommended way forward for the business decision maker.
In order to achieve this, you need to really nail down tailored bespoke advice from your law firm by understanding and communicating the business needs and context.
“My firm belief is that businesses are now seeing huge opportunities to take big steps in areas where fear of being bold may have constrained progress in the past… I would urge lawyers to adopt a more agile and courageous view in delivery of legal advice to take their place in this brave new world.”
“My firm belief is that businesses are now seeing huge opportunities to take big steps in areas where fear of being bold may have constrained progress in the past… I would urge lawyers to adopt a more agile and courageous view in delivery of legal advice to take their place in this brave new world.”
How can both in-house and private practice become one team and create value for each other?
Going back to my previous comment – in my view, the key to unlocking this potential is time spent getting to know each other outside of time sensitive matters. There are obvious wins too on both sides. Inviting the private practice team to spend time with key business stakeholders can be valuable and, in turn, secondments (at the right time, with the right candidates placed in the right team) can be work well in building trust and understanding.
That having been said, it’s important to acknowledge that we aren’t really one team — there is a role that in-house and external counsel fulfil that is overlapping but remains distinct. In-house lawyers have the benefit of closer linkage to the business, but only ever serve (and have the perspective of) one client.
External counsel are naturally further removed from the business but add unique value in being more in touch with industry practice and norms through the representation of multiple clients. The most successful partnership leverages these strengths and unique relationships, bringing that perfect synergy back to add value to the business.
Great law firm client partnerships can be the catalyst for change across the legal sector. How do we best ensure this?
Going back to the O Shaped Lawyer initiative – this is a perfect example of how we can as legal professionals unite on changing the way we work cross-practice. The mindset change Dan Kayne has promoted is absolutely crucial to moving the dial on effective lawyering.
We have to work from the baseline that the quality of legal advice provided to in-house by private practice should be taken as read. Instead, we must place focus and energy on how much both in-house AND private practice lawyers understand the business – both the overall drive and strategy and the “ask” on an individual matter basis that I describe above.
Finally, and critically, how can this advice be given in a way that enables and actually creates value for the business? This change will shift old-fashioned perceptions about lawyers being deal blockers for good.
You’re a champion of Centrica Women's Network and D&I Lead of Energy Marketing and Trading. Where do you think business is generally on those important topics?
I have seen a tidal change in the last five years on the importance of issues such as D&I and equality. Centrica’s LRECS function (Legal, Regulatory Affairs, Ethics & Compliance and Secretariat) has recently developed four committees on Wellbeing, D&I, Professional Development & Growth, and Net Zero, which discuss and deliver key initiatives on these core pillars for the function as a whole.
Following the challenges that we all faced during the pandemic with remote working, lack of face-to-face engagement, and the work/life balance scales tipping constantly due to the difficulty in drawing clear boundaries between work and home life, it became clear the overall offerings a business has on these fundamental issues have become crucial for both existing colleagues and prospective new joiners.
It's no longer acceptable to simply adopt a “tick box” approach to these – you need to live, breath and embody them into your daily business life, and – more crucially – actively call it out when they are compromised or contravened.
And, finally, what gives you cause for optimism in 2023?
The past few years have been relentless. Just when we thought a pandemic was the worst crisis we could face, life was upturned further by the terrible invasion of the Ukraine, an energy crisis and the increased economic volatility that ensued.
However – never waste a crisis – and my firm belief is that businesses are now seeing huge opportunities to take big steps in areas where fear of being bold may have constrained progress in the past, for example the race to net zero.
Government and regulatory intervention has forced businesses to re-examine their place in this race and is unlocking innovation which may have been previously parked behind more traditional approaches to business growth.
Whilst this may at first glance be scary, it is also hugely exciting, and I would urge lawyers (who may not historically have been viewed as the most risk averse humans on the planet) to adopt a more agile and courageous view in delivery of legal advice to take their place in this brave new world.