This is the first in a four-part series in which Oracle Associate General Counsel Suchitra Narayen, QuisLex CEO Ram Vasudevan and consultant Rees Morrison will discuss the opportunities and challenges facing a global legal department.
The global business arena places unique demands on corporate counsel. Collaborating across multiple time zones can be difficult and inefficient, and supporting business units in different countries—not to mention dealing with suppliers, customers and governments worldwide—can present a host of issues. At the same time, globalization provides opportunities for corporate legal departments because the diversity of knowledge, experience and perspective essential to provide effective legal support in today’s global economy is available within the department. In addition, alternative geographically-distributed legal resources have become increasingly sophisticated, and are available to assist with significant process and technological enhancements. Companies that consciously consider the implications of a global legal practice, successfully manage the potential challenges and leverage the corresponding opportunities place themselves at a distinct competitive advantage.
In-house counsel located in the U.S. may be asked to explain the business operational implications of legal requirements based on an English translation of a German document governed by Swiss law, or to decide if there is a problem with a bilingual document presented for signature where the Chinese or Ukrainian column seems to have three times as much content as the English “translation.” Deal schedules can be impacted by the limited availability of clients, customers and suppliers during the Las Posadas/Novenas Navide celebrations (starting Dec. 16 in Latin America), followed by the Russian Christmas/New Year holidays (occurring in early January based on the Georgian calendar) and then Chinese New Year (which lasts for two weeks and typically starts between late January and mid-February).
This diversity should be viewed as an opportunity, not as a challenge to a manager’s ability to effectively run the legal department. By nature, a global legal department’s employees come from different ethnic, cultural and linguistic backgrounds. Even if the communication is primarily in English, the vocabulary used, and its meaning, may differ. This can lead to interesting (at least to lawyers) debates about the use of “warranty” versus. “guaranty” and the exact scope of a license to “use” a particular technology. Having this understanding within the legal department can help avoid potential communication issues.