Focus on the role of the legal department and general counsel in a Volatile, Uncertain, Complex and Ambiguous world (VUCA)

In the context of a constantly changing economic and global scenario, the primary role of the legal department is to cope, stay updated, and anticipate an increasing development of complex laws and regulations. At the same time, it also needs to develop new skills to effectively advise its clients while they adjust to the increasing introduction of technology in their businesses.

Legal teams must now be familiar with the new technology being developed. Digitalisation in broad terms, but also different and new routes to markets, marketplaces, and innovative ways to communicate with customers and relevant stakeholders generate tremendous challenges because legal frameworks are changing at a much slower pace than the markets and needs of our clients.

Thus, giving legal advice before legal rules are in place requires new skills. A legal department needs to learn how to manage and anticipate risks without stopping the natural development of the businesses.

Legal departments are transitioning from merely giving legal advice to effectively managing legal risks. To achieve that, it is paramount that lawyers are close to the business. They must become effective partners by understanding who their clients are, what they do daily, and where they play.

Failing to do so would make managing their inherent legal risks very ineffective, becoming an abstract exercise. To make it concrete, in-house lawyers need to develop a sound and deep understanding of the underlying business they are advising.

Finally, in the case of a general counsel, the most critical and challenging role is to lead a legal team in this VUCA world effectively. Keeping new generations of lawyers motivated is key but also very hard to achieve, as vertical growth is usually not that common for lawyers outside law firms. However, as leaders, general counsel always needs to find new ways to create horizontal opportunities to keep the team motivated and constantly challenged.