The business of successfully running an in-house department

"It started as an urgent request. Our company faced a time-sensitive issue, and with a live sports event just nine days away, we needed answers fast. It was early in my tenure, and I leaned on the outside counsel our corporate parent had used for years. "Better not upset the applecart," I thought. The kickoff call went well enough. We handed over the materials, set a budget and agreed they would return in three days with a recommendation."

"An associate rang our paralegal with questions we had already answered. A managing associate asked for information sitting plainly on the first page of the first document. On deadline day-silence. When pressed, the lead partner explained they needed more time-they were still researching Massachusetts law. Odd, since our issue had nothing to do with Massachusetts. They had misunderstood where a key party was based."

"Three days later, the product arrived: a dense, esoteric seven-page memo with no recommendation. The final bill was $6,000 over budget. That was the last time we hired that firm, as the business of running our in-house department was paramount. Two sides of the mirror In-house lawyering is about running a business inside a business. That means managing internal clients, knowing the revenue model, guiding decisions, hiring with leverage in mind, and deciding when to build versus buy."

A time-sensitive legal need revealed failures of external counsel: missed facts, jurisdiction errors, silence on deadline, an over-budget dense memo with no recommendation, prompting termination of the relationship. In-house lawyering requires running a business inside a business, including managing internal clients, understanding the company's revenue model, guiding commercial decisions, hiring with leverage, and deciding whether to build capability or buy outside services. Success requires credibility, speed, and judgment. External firms advance long-term partnerships by delivering actionable, timely advice aligned with business priorities. Internal clients expect prompt decisions that move the ball forward rather than polished but slow legal analyses.

Read at ABA Journal