Lawyers often get a bad rap. I don't know how many times I have walked into a room or met new people, and the first thing I hear is the inevitable lawyer joke. And you know what? That's ok. Even lawyers appreciate these jokes, which are often just exaggerations borne out of actual experience. We've all heard jokes about lawyers being expensive, overly cautious, and even a drag on business momentum. But are lawyers effectively a "necessary evil" rather than a valuable ally? Actually . . . you guessed it . . . no, this does not have to be the case. Not even a little . . .
A good lawyer should be a trusted business advisor, someone who understands the intricacies of your business, your products, and your operations, someone you can rely on. They should be pragmatic, helping to get deals done and remove roadblocks, rather than creating them.
If your lawyer isn't doing this on the regular, you have the wrong one, and it's time for change!
Common Perceptions of Lawyers
It's no secret that many people view lawyers through a lens of skepticism. Common complaints include:
- Expense: Legal services can be costly, and many businesses feel the pinch of high hourly rates. Last year, Am Law 100 firms were charging almost $1000/hour on a blended rate basis, with high-tier partner rates topping out at more than $2500/hour. That average rate includes first-year associates with zero real world experience. No wonder lawyers are often considered "cost centers," rather than "profit centers."
- Conservatism: Lawyers, particularly those associated with law firms, are often seen as overly cautious, often times at the expense of business innovation and agility.
- Theoretical: Lawyers are often seen as being too theoretical, providing lengthy legal memos and analysis that address every potential risk, without evaluating and recommending real world application and solutions that suit clients' needs.
- Bureaucracy: Legal procedures, reviews and requirements are often seen as slowing down business operations and deal-making.
These perceptions of lawyers are, quite frankly, often-times fair and accurate. However, the right lawyer can flip these stereotypes on their head.
What a Good Lawyer Looks Like
A good lawyer is not just a legal expert, but a true business partner who:
- Understands Your Business: They should know your industry, your business model, your products, and your operations, arguably having been in your shoes before. This understanding enables them to provide advice that is not only legally sound but also commercially viable and useful for moving your business forward.
- Is Pragmatic: Rather than focusing solely on what can't be done, or providing a laundry list of theoretical cause and effect outcomes, a good lawyer helps you find ways to achieve your business goals that reasonably protects your interests consistent with the legal framework. They offer practical solutions that are actionable and are adept at real life risk management, enabling you to quickly and safely move forward.
- Facilitates Deal-Making: Instead of being a roadblock, your lawyer should be a deal-maker. This means being proactive in identifying potential issues, thinking strategically, and finding both practical legal and business solutions to address them before they become real obstacles.
- Builds Trust with the C-Suite: A good lawyer builds trust relationships with the executive team, earning it by consistently delivering sound advice and demonstrating a deep understanding of the business. This trust allows them to become integral to strategic decision-making processes, which can avoid significant problems later if not addressed early. Your team should want to reach out to your lawyer, not go around them.
- Is Responsive: How many times have you sent a note to your lawyer only for it to fall into the abyss without a timely response, or waited for a contract review for weeks, or in some cases more, without word? Your lawyer should be proactively communicating with you on a regular basis, even if the work may take some time. Clear and timely communication is critical for ensuring transparency, planning and trust.
- Seeks Feedback: Even though lawyers may be experts in the law, they are also part of a business team. As such, they should always be seeking to improve not only their skill-set, but also their overall performance.
Why You Need the Right Lawyer
Having the right lawyer can make a significant difference to your business by:
- Saving Time and Money: By providing more efficient and effective legal advice, they help avoid costly legal pitfalls and ensure smoother operations.
- Enhancing Business Agility: With their pragmatic approach, they enable quicker decision-making, implementation, and deal closure, fostering innovation and growth.
- Strengthening Strategic Planning: Their deep involvement in your business allows them to contribute valuable insights during strategic planning sessions before issues arise and you are faced with having to fix something. A good lawyer "lawyers by design"!
When to Consider a Change
If your lawyer is not meeting these criteria, it might be time to consider a change. Your time and effort and that of your teams is too valuable to be sidetracked or hindered by lawyers unable to see the forest through the trees. If your lawyer is engaging in any of the following, then it may be time to get a new one:
- Lack of Understanding: They don't take the time to understand your business and its unique challenges, both in terms of business objectives and real-life legal risks.
- Overly Cautious Advice: They focus more on what you can't do rather than finding solutions for what you can do, and over emphasize the "theoretical" over the "practical".
- Slow Response Times: They consistently slow down business operations with overly complicated procedures, delayed responses, and poor communication.
- Limited Engagement with Executives: They aren't trusted advisors to your executives, working regularly with key stakeholders on your team, and aren't involved in strategic decision-making up front.
Your lawyer should be more than just a legal necessity; they should be a vital part of your business strategy and operations. If you don't love your lawyer, then make a change. Find someone who understands your business, offers pragmatic advice, facilitates deal-making, and is a trusted advisor to your executive team. In the long run, the right lawyer will not only protect your business but also help it thrive.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.