Today’s Executive Search and Management Consulting firms are famous for espousing “Best Practices.” But guess what? Nothing could be more detrimental to your organization. Think about it this way: Why would you and your organization want to “follow the herd”?
At N2Growth, we’re not just another consulting firm espousing best practices. We are strategic thought partners co-creating Next Practices with our clients. Today’s successful companies continuously innovate and disrupt the marketplace. That’s what Next Practices enable them to do. There is a reason that 89% of the Fortune 500 companies that first appeared on that list aren’t there anymore. They have been disrupted by companies whose next practices, in many instances, they didn’t even see coming.
Twenty-plus years of selecting General Counsel for public and private companies have taught us a lot at N2Growth. Most “Executive Search Consultants” (even so-called legal search consultants) will go on and on about that how the role has changed. Frankly, that’s old news. Yes, the General Counsel role has changed dramatically, from one of gatekeeper and legal advice provider to a critical member of the corporation’s leadership team. That’s common knowledge. But sadly, how most executive and legal search firms’ approach selecting a General Counsel doesn’t reflect that knowledge.
The real question then is, what are the Next Practices in hiring a General Counsel?
- AUTHENTIC BUSINESS ACUMEN:
Every lawyer I interview tells me they are a “business partner.” This is simply not the case. Many lawyers don’t know how to make sense of a balance sheet, create a budget, turn the legal department into a revenue stream, or manage and lead people so that they produce real business results. For example, are they truly a problem solver or are they just a problem identifier?
Next Practice: To truly add competitive value to your organization, General Counsel candidates’ business acumen must be researched and assessed for authenticity.
2. PROVEN DECISION-MAKING SKILLS:
Law schools and law firms don’t train lawyers to make decisions; They train them to see both sides of an argument. (I know – I’m a former practicing attorney). However, today’s General Counsels are often called upon to make significant business and legal decisions – on a dime.
Many lawyers I’ve interviewed are incredibly uncomfortable making critical decisions that way, but it’s a “must have” skill. Some candidates want to rely on outside counsel. That’s not “Next Practices.”
Next Practice: While there is certainly a time, a place, and a budget for outside counsel, increasing Board mandates to decrease litigation and other costs necessitate proven decision-making skills.
3. SOPHISTICATED BOARD EXPERTISE:
The ability to concisely present to and effectively advise a board of directors is mission critical. Often a General Counsel is called to serve as “Crisis Adviser in Chief”. Your General Counsel must have the gravitas, experience, and skill to advise and stand up to the Board when necessary.
Think about it. General Counsel’s often have to conduct internal investigations, avoid or manage criminal investigations, and weave through the ever-increasing morass of regulations and legislation.
Next Practice: Your General Counsel must have the aptitude to not only shape those discussions but also advise the Board on important issues the discussions raise such as public policy, ethics, and risk.
4. STELLAR LEGAL COMMUNITY REPUTATION:
Like other organizations, you’ve most likely invested heavily in your employer brand in the talent marketplace. What reputation does your General Counsel hold in the legal community? They are your voice in that community. Can they attract the right talent to want to work with them? Are they a thought leader? A creative problem-solver? Or are they territorial or, worse, an obstructionist? What is their reputation before Judges and with their clients?
Next Practice: Your executive search consultant must be able to assess and tell you these things; if not, you’ve got the wrong consultant.
5. VERIFIABLE LEADERSHIP SKILLS:
People call themselves leaders all the time. At N2Growth, our core philosophy is that exceptional leadership creates the ultimate advantage. Every service we provide is through a leadership lens. As thought leaders in the leadership industry, we know that leadership is the silver bullet.
I recently spoke with an Associate General Counsel who summarily informed me that everything was working perfectly in his organization. He was entirely closed off to innovation. This is a company in which operations have dwindled and a mass exodus of talent is occurring. That’s not the thinking of a true leader. That’s the proverbial “check-the-box mentality” at its worst.
Next Practice: Research and verify a prospective General Counsel candidate’s leadership skills closely. When and how did their leadership skills manifest? Is there an actual track record? What is their definition of leadership and importantly, does their definition align with your company culture? Remember that leadership in a law firm often looks quite different than the leadership you need the General Counsel to demonstrate in today’s corporate world!
Hiring your next General Counsel is an opportunity to create real impact in your organization. Don’t follow the herd. Utilize the above “5 Next Practices”. That’s where you create sustainable competitive advantage.