Date: April 12, 2013 Topic: The Shrinking ... - Georgetown Law

General Counsel with Power? 2011
Chapter 3: Convergence, Panels, and Legal Networks
The practice of law is in part based on building and maintaining relationships. Personal rapport remains
highly significant particularly for high-­‐end bespoke work in litigation or corporate transactions. Some in-­house
lawyers therefore stated that instructing a specific lawyer was more important than, or just as
important as, retaining specific law firms. Nevertheless, most general counsel in this study said that
these relationships are largely institutional, and that working with a smaller number of law firms would
be of mutual benefit. Such generic belief, however, disguises subtle differences amongst in-­‐house
lawyers in how they think they can balance the use of competitive forces and collaborative commitment
to engage law firms.
Panels
To the question ‘does your firm have a panel?’ some said yes, others said they had informal ones, and
yet others said no, revealing a strong dislike for the notion of panels. Why is there such disagreement
amongst the general counsel?
Disagreement stems from the fact that the notion of a panel incorporates several characteristics, and
the general counsel interviewed have in mind a different mix of these characteristics. Panels may
involve some or all of the following:-­‐
(a) A rigorous process of selection onto the panel with specific criteria such as expertise, market
reputation, values and branding
(b) A periodic review of panel members, leading to some turnover in the membership
(c) A stable group of preferred suppliers who commit to a long-­‐term relationship
(d) An element of competition among panel law firms
(e) Lateral communication amongst suppliers, with the use of knowledge management tools to
facilitate this.
Some general counsel put great importance on building long-­‐term relationships (i.e. an emphasis on (c)
above). Without such relationship building, law firms are unlikely to develop good knowledge of the
client firm. According to one general counsel: ‘I’ve always believed in a panel pledge, on the basis that if
you spread your job too thinly, one, people don’t have much knowledge of your business, and two, you
might save a bob on one deal but I bet you it will come back and haunt you.’
Some other general counsel focused on having a very small number of law firms without calling them
panel firms. For example, one general counsel retained five ‘chosen partner’ law firms, each with a 20 –
30 year-­‐long relationship. He said: ‘I don’t believe in a panel because our work does not generate the
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Said Business School | University of Oxford