In-house ACCess : In-house ACCess: Association of Corporate Counsel : ACC : The In-house Counsel Bar Association

By J. Alberto Gonzalez-Pita the Executive Vice-President & General Counsel of HCP, Inc., headquartered in Long Beach, CA. Mr. Gonzalez-Pita is the Chair of the Board of Directors of the Association of Corporate Counsel. 

I recently had the great pleasure of attending the ACC Europe Annual Conference in Berlin. For three days, I attended practical and timely sessions that spoke to the increasing responsibilities of in-house counsel and the effective management of this role. The 300+ delegates came from some 29 countries.

The opening session featured Richard Susskind, author of “The End of Lawyers?” who talked about the future of the legal profession, which was quite entertaining. Thomas Werlen, general counsel, Novartis, joined him and focused on building the forward-thinking legal department. They reminded me of how far our profession has come and highlighted the challenges that remain, including those facing us now and those we will face in the foreseeable future:

• Pressure on head count and external spend;
• More legal work as a result of increasing regulation worldwide; and
• The delivery of more legal service at less cost — "more for less."  

Susskind envisages a future of fast-paced technological change that will continue to have a profound impact on how lawyers work, and on those choosing to pursue a career in law. As knowledge systems and greater computer processing power reduce the need for pure legal experts — placing the emphasis firmly on legal process, project management and the standardization of legal products — law firms and legal departments need to work hard to keep up. This will ensure the survival of the role of the trusted advisor, running strategy, tactics and advocacy.

Sessions ran the gamut for the diverse attendees; they covered data privacy, anti-corruption, managing a small legal department, policies for dealing with social media, cloud computing and the effective use of technology. The main solution offered to the problem of not enough counsel to go around was to make better use of technology.

And throughout the conference was the thread of value: how the law department adds value, how to do more with less, and the complicated but important need for in-house lawyers and outside counsel to find ways to better work together.

The closing session featured a stellar cast of corporate counsel including Michael Wu, general counsel, Rossetta Stone; Leanne Geale, global legal services, Royal Dutch Shell; Bertrand Alexis, senior director, Qtel International; and Andrea Goodrich, associate general counsel, Tyco International. The esteemed counsel shared their best practices in managing their legal department and outside counsel relationships. And representing Norton Rose was Andrew Fleming, who inspired a frank and welcome discussion on how best to achieve a value-based relationship with your outside counsel.

Aside from the substantive sessions, highlights of the conference included the cocktail reception and gala dinner at the beautiful Orangerie at Schloss Charlottenburg. Standing on the terrace in the early evening –– glass in hand –– will live long in my memory.

It was great to meet our very engaged European members and to have the opportunity to restate ACC’s commitment to in-house counsel across Europe and beyond. I’m looking forward to the next opportunity to cross the pond.

See you next year in Amsterdam!

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(ACC Docket — December)

I learn a lot about our members when I attend a gathering. I am writing this blog post on the heels of our 2010 Annual Meeting in San Antonio –– my fifth meeting since I’ve been with ACC. Here’s what the meetings have taught me, both onsite and on the plane ride home.

Many, many lawyers are tech savvy, carrying Smartphones, laptops and iPads. Numerous attendees even showed up for registration carrying nothing more than an iPad and a phone. I can’t do that and I consider myself a semi-early adapter.

In-house counsel act quickly. When many attendees found out that we launched the Mobile Docket for the iPad^® and iPhone^®, they immediately downloaded the app.

In-house counsel use social media. Your companies blog, tweet and often host Facebook and LinkedIn pages. Yes, I also know that it makes some of you nervous, but others of you help us engage members with social media at the meetings. And for those of us who embrace this communication tool, thank you. Many of you have your own accounts. Simply check out the 2010 Annual Meeting hashtag, #accam10 on Twitter to see how many legal professionals are tweeting. It’s really uber cool.

A few lawyers still show up carrying a four-inch binder containing all their session handouts, their schedule etc., perhaps branding themselves as slow to change. Is this the message that you want to send? You obviously care enough about your profession and career to attend the meeting, and you never know where that next job offer might come from. Therefore, your networking image is important, especially at the Annual Meeting –the largest gathering of in-house counsel. I know this can require baby steps, but maybe you can ease yourself into a “less-paper-is-more strategy” by leaving the binder in your hotel room and carrying a nice portfolio, laptop or iPad instead.

On the flip side, there are the in-house counsel who show up in lax dress, jeans or even shorts. Is this really how you want to present yourself to your peers? Wouldn’t you want to always dress the part? We all know that first impressions count for everything so make sure that the one you emit is nothing but positive. Again, you never know who you’re going to meet –– maybe your next boss.

Lawyers are funny. Maybe it’s the stress of the job. Maybe you were the class clown. Maybe you like to leave what you do back at the office. But, you are a funny, fun bunch, despite the serious and deliberate nature of your career choice. Don’t let anyone else tell you differently — I so enjoy talking with you whether it’s onsite, via the telephone, email or social media.

You move with purpose. While at the ACC Annual Meeting, I have a lot of time to observe: you get to your session, find a seat and gear up to take notes. You pay attention to the presenters and ask excellent questions. I learn a lot by sitting at the back of the room and for that, I thank you.

You are always connected to the office. I know it’s the nature of the beast, but the fact that you make yourself so readily available is worth mentioning. You realize that the office does not stop working simply because you are gone. I know this can be difficult to manage while trying to focus onsite. But you do it with flair and courtesy.

When you network with your peers, it’s all work and little play until after hours. The networking lunches on Monday and Tuesday present time for Annual Meeting attendees to talk with others around the table. Unless you know other attendees personally, you generally focus on work, your department, job, corporate issues, etc., when you are there.

You have the best ideas for ACC Docket articles and Annual Meeting session topics. You are the ones in the trenches. You know which challenges you face; what works for your department and what does not. So, as we end 2010, consider making a professional resolution: I will write a feature article for the ACC Docket or submit an idea for the 2011 Annual Meeting You won’t be disappointed with the experience. We promise.

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(ACC Docket — September)

Much to the chagrin of those who know me well, I am a creature of habit. I sit on the same side in church; the same car and even seat on the commuter train. It upsets me if someone sits in “my seat.” Yes, I know it’s not really mine, but I am in my comfort zone. If I take a different commuter train, then I have to adjust to new conductors and new passengers. It’s almost like being in a new city. But, we all know how comforting yet constricting routine can be.

I cut my professional teeth in the print world of communication. Translated, that means I know what a pica pole is. I also know that a wax machine is not only for cleaning up your eyebrows and I am pretty good with X-Acto knives. I worked on my college newspaper before PageMaker or Quark even hit the design scene. Even so, I have embraced the online world and new technologies; however, I am usually not a first adopter unless it is effective. So, imagine how uncomfortable I was when two ACC colleagues introduced me to microblogging via Twitter. I had a LinkedIn profile that I had to complete since it was going to be posted on my Twitter page. I set up my Twitter account, @eicdocket, in February 2009, and have completely embraced the concept of social media. My LinkedIn account is used at least five times a week. But you won’t catch me on other sites — I only have so much time.

Twitter gives me access to topics and people I normally would not know about or communicate with. Since Twitter only allows 140 character, it forces me to write succinctly — a trait all of us should strive for. It serves as a communication tool for my employer when we launch a new magazine issue, blog post or news event. Yes, I even use it for personal observations, comments or thoughts; I use my best judgment to make sure I don’t take it too far. However, this isn’t always the case online, and employers are grappling with how to deal with social media because it’s not going away.

This month’s ACC Docket cover story, “Are You Building a House of Cards? Social Networking in the Office” asks if you have a clear social media policy for your clients because “what happens in Vegas,” doesn’t always stay there. And, if you need more on social media, then read “Identifying the Legal Issues Lurking Behind Walls and Tweets” and “Social Media Game Plan: IP and Marketing Law Playbook.”

If your multinational company is not familiar with US-style discovery, make sure you read “Tips and Traps in Conducting Discovery of Foreign Corporations.” “Building Blocks for Corporate Ethics” is an excellent refresh of your knowledge in this area. Protecting your customers’ privacy should always be a priority, so “A Balancing Act: Protecting Customer Interests and Privacy Online” helps in-house counsel strike a balance between the two. Further, neither in-house nor outside counsel should miss “Evidence Preservation Warfare: Ediscovery Lessons Learned from AMD v. Intel.”  Written by AMD’s legal team, this piece provides excellent points to remember as you preserve data within your company.

Make sure you always read our columnists. We knew their work was award-winning even before publishing peers told us so. Infusing humor, perspective and knowledge in 700 words or less is never easy. Try doing it in 140 character or less. See you on Twitter.

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I just returned from Vienna and the annual conference of our European chapter--ACC Europe.   Strategic Risk Management: Art or Science? engaged our more than 250 participants with outstanding speakers from across Europe. The discussions in the sessions and during the breaks were lively and informative. The topics were especially relevant given the recent international financial meltdown and, of course, the Deepwater Horizon environmental tragedy in the Gulf of Mexico. 

The panelists of our opening plenary session, Gouverner c’est prévoir or the Art of Strategic Management: How Does Management See Our Role?  encouraged us to take our eyes away from our in-boxes and the possibly low risk daily legal service demands we are bombarded with, and spend more time identifying and mitigating the larger risks facing our companies. Moderated by David Bernick, Senior VP and General Counsel of Philip Morris International, the panel also examined the role of in-house counsel in strategic risk management.

Other panels discussed the nuts and bolts of risk management, the counsel’s role in company ethics programs, and specific legal and business issues facing companies that do business in Europe.   I found each session to be valuable and educational, and I greatly appreciate all our members who served on panels and added so much to the conference.

While at the conference, I read a column by David Brooks of The New York Times on risk and society’s response. His words were both timely and disconcerting. His sobering comments have particular relevance for in-house attorneys and others responsible for risk management in their organizations.

Brooks discussed risk assessment and the intersection of complex technology and human psychology. Technology allows us to live well but much of it and the financial and other systems it enables have become too complex for any single person to comprehend. Yet at the same time, it is individuals who must monitor and make decisions about risk. As Brooks notes, “humans are not great at measuring and responding to risk in situations too complicated to understand.”

He goes on to make five key points:

1.           We do not understand how little failures combine to create catastrophes (citing Three Mile Island).

2.           We acclimate to risk and think if something worked the last time it will work again (the Challenger disaster).

3.           We have too much faith in safety and back up systems (more people are killed in cross walks than jaywalking because they fail to look both ways).

4.          We combine complicated tech systems with complicated governance structures and tangled and confusing lines of authority and responsibility (Deepwater Horizon).

5.           We tell good news and hide bad news (just about everyone).

These are challenging times. Brooks concludes that we must go beyond making technology safer and develop better ways to assess risk and make choices that guard against risk creep, false security and good news bias.

The Brooks column certainly came at an opportune moment for the ACCE delegates as we thought about identifying and mitigating risk. ACC staff asked a number of delegates to identify the risks facing their companies and how they approach it.

Thirty-five conference participants responded to our survey and identified the top five risks their companies face. Most commonly cited were: Contractual (66%); Data protection/Privacy (58%); Anti-trust (54%); Regulatory (54%); Fraud (52%) and Ethics (46%).

Most compelling, companies have developed policies to address these risks and to measure their results. The areas for which companies most commonly have policies are: Data protection (72%); Contractual (69%); Ethics (58%); Corporate governance (52%); Anti-trust (49%); Financial (46%) and Fraud (46%). An impressive 64% of respondents said their organizations assess the effectiveness of their compliance programs. And, 90% of those that do such assessments use similar methods – audits, either random or regular, of specific business functions; general data keeping about the nature and incidence of compliance problems; and qualitative reporting (for example, debrief after an investigation).

As we discussed in Vienna and the data clearly shows, in-house counsel understand the risks facing their companies; and, the in-house bar is actively seeking solutions and putting together sophisticated programs to mitigate these risks and to measure the results.

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