Working with external counsel can be a crucial aspect of managing legal issues, especially for companies that need specialized expertise or extra support for their in-house legal team. To make the most of these collaborations, it’s important to follow some best practices that ensure efficiency, alignment with business goals, and cost-effectiveness. Here’s my straightforward guide to help work effectively with external legal experts.
1. Choose the Right Counsel for the Job
The first and perhaps most important step is selecting the right external counsel. Think of this process as matching the right tool to the job. It’s essential to find a specialist whose expertise aligns perfectly with the task at hand. This targeted approach ensures that the counsel you hire will be able to handle the matter with the highest level of effectiveness.
2. Onboard Your External Counsel Thoroughly
Once you’ve selected the right external counsel, proper onboarding is key. Don’t just hand over a task and expect results. Take the time to integrate the external expert into your company’s operations. Help them understand how your business works, what your strategic goals are, and why certain decisions are made. Provide them with insights into your internal processes, corporate jargon, and specific terminologies. This way, they won’t just see the small piece of the puzzle they’re working on – they’ll understand the big picture. When external counsel grasps the full context, they can deliver more strategic and aligned advice.
3. Provide a Clear and Strict Briefing
When assigning tasks to your external counsel, clarity is crucial. Clearly define what you need, why you need it, when you need it by, and how much you’re willing to spend. This briefing should be detailed and leave no room for ambiguity. By setting clear expectations, you not only ensure that the work aligns with your objectives but also prevent misunderstandings that could lead to unnecessary revisions or delays.
4. Pre-Approve Any Changes
One of the risks of working with external counsel is the potential for scope creep – where the scope of work expands beyond the original agreement, leading to unnecessary work and increased costs. To avoid this, make it a rule that any changes to the original plan must be pre-approved by you or your in-house legal team. This ensures that all work remains relevant to your needs and prevents the delivery of work products that aren’t essential.
5. Monitor Hourly Rates and Expenses
Cost management is a significant concern when working with external counsel. It’s vital to ensure that the hourly rates and expenses are reasonable and remain so throughout the project. Request detailed legal bills that specifically describe the services performed. This practice not only keeps costs in check but also gives you insight into what the external counsel is doing. By maintaining detailed records, you can challenge any questionable hours and ensure that the billing remains fair.
6. Conduct Quarterly Relationship Management Calls
Regular communication is essential for maintaining a strong working relationship with external counsel. Schedule quarterly relationship management calls to review past performance, discuss upcoming needs, and provide feedback. These calls serve as an opportunity to align on future projects, address any concerns, and ensure that both parties are on the same page. This ongoing dialogue helps to build a more productive and transparent partnership.
7. Track Results and Learn Lessons
Once a project is completed, take the time to track the results and identify any lessons learned. This could include analyzing the duration of the project, total fees and expenses, the outcomes achieved, and how accurately the external counsel predicted the results. By comparing these metrics across different projects or law firms, you can identify patterns and make more informed decisions in the future. Sharing these insights with your business clients can also help reduce future legal exposure and spending.
8. Treat External Counsel as Part of the Team
Finally, remember that external legal experts are an extension of your team. They should be viewed not as outsiders but as integral members of your broader legal department. If they make a mistake, it’s as if your own team made it; if they achieve success, it’s a success for everyone. Foster a collaborative spirit and ensure that external counsel feels invested in your company’s goals. By working together closely, you can achieve better outcomes and build a stronger, more cohesive legal team.
By following these best practices, you can ensure that your collaboration with external counsel is efficient, cost-effective, and aligned with your company’s strategic goals. This not only helps in achieving better legal outcomes but also contributes to the overall success of your business.
By Mate Lapis, Head of Legal, Cherrisk
