Legal Daily News Feature
CEB Market Watch: Trends and Strategy for General Counsel By Rebecca E. Neely As a result of research conducted by the Corporate Executive Board Company (CEB), during which over 100 general counsels of Fortune 1,000 companies were interviewed, several key trends, driven largely by the economy, are predicted to change the legal landscape over the next few years. In addition, strategies for addressing these trends, proactively, were identified.
09/26/11 It is predicted that the regulations surrounding issues such as privacy, corruption, governance, transparency, and intellectual property, which according to CEB research have already diverged, will continue to do so, while the issues themselves will continue to converge, on a global basis. Factors identified as driving the divergence of regulations include, per the September 15th businessweek. com article, ‘’Corporate Legal: Get Ready for Five Changes’’, ‘’public and media outrage of a perceived regulatory gap, protection of national interests or key domestic companies, revenue generation in an era of significant government budget shortfalls, and a preservation of regulators’ and enforcers’ power and influence.’’ It is also predicted that the amount of information available will continue to grow on an exponential basis. And while this has been happening for over a decade, CEB identifies a ‘’different kind of information’’; the lines are starting to blur among corporate, consumer and private data, as smart phones and GPS allow nary a shred of information left untracked, or unknown, globally, instantly. CEB predicts a dramatic increase in disputes over ‘’ownership and use of information.’’ Building on the concept of an information explosion, CEB puts forth the idea that transparency and privacy will become increasingly at odds with one another. Not only do companies possess a great deal more information, they have a great deal more to be accountable for regarding that information. For example, with the implementation of the Dodd Frank Act, both the requirements for transparency and disclosure have increased dramatically. However, the EU Data Protection Directive, for example, often creates issues regarding disclosure, creating a legal conundrum.
PAGE
With an increasingly global paradigm driving every facet of society, CEB predicts legal departments will move increasingly to decentralize staff in order to most appropriately serve foreign markets. In fact, CEB points to the banking industry as evidence of this shift. The decentralization mirrors the shift of their companies toward these emerging markets. Also, CEB points to the growing trend it terms ‘’disruption of the legal services market’’; new players have taken the field in just the last few years, including upstart law firms, non-law firm vendors, and offshore options. Because legal departments are generally what CEB describes as ‘’supplier-dependent’’; they outsource their most sensitive and important work to law firms, CEB predicts this disruption will have a lasting ‘’effect on large law firms.’’ CEB recommends several actions general counsel and legal departments can undertake so as to develop a proactive approach to these shifts in the legal landscape, as well as to best allocate resources, and build maximum effectiveness, internally, and externally. These actions include working to build ‘’local legal support to address risk in emerging markets,’’ taking a ‘well rounded’ approach to investing in skills other than legal, such as technical and communication, and focusing more on a ‘hands on’, situational learning process, versus traditional training activities. As well, further cultivating an insightful, comprehensive view of global markets and issues will increase the ability of general counsel to act more quickly and strategically to other emerging trends. The Corporate Executive Board Company (CEB) ‘’provides best practices research and analysis to business executives and professionals worldwide,’’ including benchmarking datasets, decision-support tools and case studies, as well as executive forums and peer networking opportunities. CEB has as its client base ‘’more than 80% of Fortune 500 corporations in’’ over 50 countries.
www.lawcrossing.com