Legal news and trends for Canadian in-house counsel and c-suite executives
Issue link: https://digital.canadianlawyermag.com/i/50877
EDITOR'S BOX By Kelly Harris INHOUSE Group Publisher: Karen Lorimer Editorial Director Gail J. Cohen Editor: Kelly Harris Staff Writer: Robert Todd Copy Editor: Heather Gardiner Creative Director: Einar Rice Art Director: Bill Hunter Account Co-ordinators: Alice Chen & Catherine Giles Publications Mail Agreement #40766500 ISSN 1921-9563 Copyright © 2009 G.S.T. Registration #R121349799 Advertising Sales Representatives Legal Suppliers: Kimberlee Pascoe Tel: (905) 713-4342 E-mail: kpascoe@clbmedia.ca Law Firms: Karen Lorimer Tel: (905) 713-4339 E-mail: klorimer@clbmedia.ca Kathy Liotta Tel: (905) 713-4340 E-mail: kliotta@clbmedia.ca Sales Co-ordinator: Sandy Shutt Tel: (905) 713-4337 E-mail: sshutt@clbmedia.ca Canadian Lawyer Magazine Inc. President: Stuart J. Morrison Canadian Lawyer InHouse is published 6 times a year by Canadian Lawyer Magazine Inc., 240 Edward St., Aurora, Ont. L4G 3S9 (905) 841-6480 Fax: (905) 727-0017. E-mail: cleditor@clbmedia.ca Web: www.canadianlawyermag.com/inhouse All rights reserved. Contents may not be reprinted without written permission. The opinions expressed in articles are not necessarily those of the publisher. Information presented is compiled from sources believed to be accurate, however, the publisher assumes no responsi- bility for errors or omissions. Canadian Lawyer InHouse disclaims any warranty as to the accuracy, completeness or currency of the contents of this publication and disclaims all liability in respect of the results of any action taken or not taken in reliance upon information in this publication. To subscribe Call 1-888-743-3551 x4355 or e-mail kschulz-lacey@clbmedia.ca RETURN UNDELIVERABLE CANADIAN ADDRESS TO: CIRCULATION DEPARTMENT 240 EDWARD ST., AURORA, ON L4G 3S9 Indexed in the Canadian Periodical Index www.canadianlawyermag.com/inhouse Measured optimism I heard economist, lawyer, and for- mer U.S. labour secretary Robert Reich recently say we are most likely out of the recession and on the road to recovery. But he doubts whether the bounce will equal the fall. His supposition was based on the idea consumers have too much debt and lack access to credit. He also point- ed out the U.S. underemployment rate — the rate of people who do not have jobs, or are working and being paid at less than full capacity — is around 20 per cent. Reich made the remarks at the Toronto Forum for Global Cities Conference in Toronto sponsored by Canadian law firm Fraser Milner Casgrain LLP. He did say the successful areas, cit- ies, provinces, countries, and what have you, will be the ones offering more incentives for business. Lower taxes, an energized work force, and cheaper business conditions will all play into whether a jurisdiction will be suc- cessful — basically areas that provide uncommon value. Much of what he said was about consumer spending and government intervention. But I couldn't help but equate his talk with what is happen- ing in the legal world. It would be almost impossible to go to any in- house counsel conference or read any legal department trade magazine in the past year and not hear about spending less. We have paid special attention in our magazines to initiatives like value billing and what in-house lawyers are doing to control costs. Most pundits, myself included, have pondered whether we have seen the end of the billable hour — at least in the corporate setting — or whether this is just a blip. The conversation is eerily similar to the one economists are having about consumer spending. Will spending go back up as the economy improves? Or will finding ways to do more with less continue? In an answer typical of the legal world, I would say it depends. In researching the article "ACC Value Challenge at one year" on page 23, it was made clear the drop in spending on outside counsel didn't begin with the economic plunge; it merely accelerated something that was already happening. As legal departments become bet- ter managers of their money they will spend less on outside counsel. The rub, of course, is if the companies become more efficient and profitable in the process, they will have a greater need to spend on outside counsel. So the discussion in-house lawyers are having is help me, help my company to grow, and you'll benefit from that growth. That is how I understand value- billing initiatives. I doubt they'll all work, and having a discussion with a profession that is naturally risk averse will not be easy. But as Reich said about the new economy, places that offer uncommon value will do well. IH For weekly INHOUSE news and updates go to: www.canadianlawyermag.com/inhouse INHOUSE DECEMBER 2009/JANUARY 2010 • 3