Strategies to Lead Legal Teams in Today’s Unpredictable, Dynamic Business Environment

In the past few years, businesses have faced never-ending changes due to a global pandemic, war in Ukraine, high inflation, recession fears, a banking crisis, worry about a possible U.S. debt default, as well as technological advances, like artificial intelligence. At the same time, we also have been grappling with racial unrest, gun violence, limitations on women’s rights, and restrictions affecting the LGBTQ+ community. Given that the only constant is change, how do General Counsel and legal leaders continue to guide their teams through this dynamic business environment?

In the GC Advantage^SM webinar, “Leading Legal Teams in Today’s Unpredictable, Dynamic Business Environment,” Elisa Garcia, Chief Legal Officer & Corporate Secretary of Macy’s, Inc., joined me for a conversation around strategies General Counsel need to adopt to successfully lead their teams. This article is a summary of our discussion.

Skills and Strategies for Leading Legal Teams in a Dynamic Business Environment

In a fluctuating business environment, it is even more critical for General Counsel to demonstrate that their teams are more than cost centers. Legal team leaders must employ skills and strategies to help teams adapt, respond to challenges, and demonstrate value.

Keep the Legal Team Engaged

Managing a remote team was one challenge many legal and business leaders faced at the beginning of the pandemic. Concerns about isolation, loneliness, and disengagement added to this challenge.

Legal team leaders must be creative in keeping team members engaged. Innovative ways to enhance engagement include:

• Offering virtual sessions. Sessions allow employees to learn and can be with the CEO, colleagues, or other experts—such as doctors who can speak about mental health or professionals who can help people with discussions regarding racial violence.
• Providing resources and education. Allow employees to learn and engage with different topics using self-paced programming. Offering employer-paid programs for degrees or certifications is another way to increase engagement.
• Collaborating with engagement teams. Teams can create remote events, parties, and games and encourage employees to participate. Engagement teams may also set up training on different topics, such as presentation skills.
• Holding town halls and facilitating virtual breakrooms. Town halls can be for the legal team or the entire company to receive updates. Virtual breakrooms provide a safe and casual environment for people to speak freely about themselves. Employees can remotely connect and learn about each other, sharing books or upcoming travel plans.

Use Strategic Thinking to Evolve the Legal Team’s Focus as the Strategy of the Business Changes

Strategic thinking, creativity, and agility are essential in the changing business environment. The GC and members of legal teams must help businesses see around corners. As Elisa noted, it is vital for attorneys “to think like a businessperson who went to law school.” The GC must be involved when the company is developing its strategy and align the legal team to focus on the company’s evolving strategic goals.

Listen to Learn When Addressing Concerns

Emotional intelligence and listening are also critical skills today. When learning of an issue, an attorney’s instinct may be to jump in to fix things. Instead, it is important to actively listen while the issue is being discussed, using not only your ears but also your eyes to observe body language and to read between the lines as to what may not be said. Avoid dominating the conversation but do speak when you do have something to contribute. Ask questions to make sure you understand the issue and what the business is trying to accomplish.

Learn the Business of the Company

Learn the company’s business to understand how decisions affect others. Elisa relayed how the CEO of Domino’s Pizza, Inc. invited her to spend four days in a Domino’s store after being hired as their first external legal hire. Although she was busy handling the demands of her new role, she eventually accepted the invitation.

In the process, Elisa learned how to make and bake pizzas in the store, but the biggest takeaway was that sending corporate staff to the stores was the best way for them to understand the business and how corporate decisions affected individuals in the stores.

In addition to working in storefronts, legal team members can learn by:

• Attending seminars and training. Find the programs being held for people working in the business and ask if your legal team can be included. Seminars and training enable the legal staff to learn about the business while interacting with their business peers.
• Reading periodicals, online sources, and reports. Many industries have a set of business publications, reports, or other resources commonly utilized by those on the business side to keep up with industry developments and trends. Ask your business peers about these resources and subscribe or get on distribution lists. Read them and ask questions.
• Joining employee resource groups (ERGs) or mentoring circles. ERGs allow legal team members to get to know other employees, support inclusion, and influence the business. Mentoring circles provide an opportunity for legal team members and others who are part of the circle to meet with senior executives to discuss topics relevant to the business.

Weigh the Pros and Cons of Adding Non-Legal Functions to Legal Duties

Legal leaders are often asked to take on responsibilities beyond their legal function. Adding non-legal functions is a notable way to stretch your comfort zone and test your capabilities.

Before accepting the new function, ensure you are ready to take on the additional responsibilities and that it is not too far outside of your skill set. Consider the following when taking on a new function:

• Confirm the support needed to take on the function is in place. If you accept the new role, support will be required from the other executives and the team you will be overseeing.
• Do your homework. Educate yourself about the role and what it entails to make sure you will be comfortable with it.
• Learn the business of the unit. Understand the unit’s processes and how the unit functions.

Build Resilience in the Face of Challenges

In a dynamic business environment, sometimes things will not go according to plan. Mistakes and items beyond your control can affect you and your career path. At these times, resilience and learning from your mistakes become important skills. Remember that success often springs from failure. Try to view it as an opportunity to learn and perhaps do something different.

Whether finding yourself unexpectedly retiring early or realizing there was more you could do to draw attention to a concern, use these challenges to build your resilience.

Help Colleagues Understand Why You Have Questions and How it Helps Them Resolve Concerns

Asking questions is the best way to ensure understanding of the business’s strategic objectives. If you are uncertain your question is a good one to ask in a meeting, jot it down and ask a trusted colleague later.

Sometimes you may encounter businesspeople who do not want to answer your business questions and instead want to box you into only being a lawyer and do not want you to provide business advice. In those cases, remind them that you will be able to give better legal advice if you understand the business and what they are trying to achieve. What pays the legal team’s salary and bonuses is the company doing business, so it is in your interest to help the businesspeople do business. To do this, you need to understand the business’s strategic initiatives, what is important to it, and what is driving it when providing legal advice.

Use a “Top-Down, Bottom-Up” Approach to Strategic Planning for the Legal Team

Elisa explained how at Macy’s, they use a “top-down and bottom-up” approach for strategic planning. The executive team lays out the objectives for the coming year. The GC then shares those objectives with the legal team leads, who in turn work with their teams to build the initiatives to match the goals from the bottom up. The initiatives are formed into a plan, which becomes the legal team’s objectives for the coming year.

In addition to doing this strategic planning, Elisa also recommends putting together a legal year-end review. Include in it the accomplishments of the legal team, as well as the legal spending for the year. By using data and highlighting the department’s achievements and how it has helped move the business forward, the GC can overcome the incorrect belief of some business leaders that the legal department only operates as a cost center.

Prepare the Incoming CEO by Knowing What the CEO Needs to Know

The role of the General Counsel is to support and act as a strategic advisor to the CEO. The onboarding process for a new CEO can be an excellent opportunity for the GC to showcase their value.

The GC needs to ensure the incoming CEO has the information the CEO needs to do the job. Know what the CEO needs to know—such as information on major litigation, contract issues, and nuances of the board operation—and provide that information to the incoming individual.

Advice for Incoming In-House Counsel

Elisa advises to not neglect your personal life. Remember your family and how quickly children grow.

Regarding your career as in-house counsel, know:

• Individual value skyrockets when you understand the business of the company well and how the company makes money. Doing so will simplify prioritization on the legal side.
• The value of networking and investing in maintaining connections throughout your career. The connections may help during and after a career as in-house counsel.
• Politics is not a dirty word. It is crucial to understand the politics within the organization and how things get done. Network and learn who is who in the company.

Consult with BarkerGilmore to Prepare to Navigate Evolving Business Environments

With the ever-changing dynamic business environment, it is even more important to be prepared to evolve with the business. BarkerGilmore provides recruiting, leadership development, and legal and compliance department consulting services to ensure preparation when navigating the inconstant business environment.

Maureen Brundage and our team of professionals are happy to help accelerate the initiatives that you’re already pursuing or to supplement your current strategic thinking to help you realize your vision. Please reach out if you or your organization may benefit from our recruiting, leadership development and coaching, or legal and compliance department consulting services. Let BarkerGilmore help you build and optimize your legal and compliance departments.