Naturally, that town is Silicon Valley, the home of innovation. And the innovator in question is UC Berkeley – a leading US law school, renowned for its prowess in technology and IP.
‘Once a Raider, always a Raider’
Al Davis
In the 1980s and 1990s, few sports teams were as culturally transcendent as the Raiders.
The unmistakable pirate logo, accented in silver and black, was a mainstay on attire around the globe – proudly displayed by countless people, many of whom had likely never seen the team play a game in their life.
What role should the general counsel play in a crisis? How central should they be?
All crises require a point person to be decisive and lead the company through uncertainty. Oftentimes, companies turn to individuals from the c-suite to serve in this role. But increasingly, general counsel are finding themselves both coordinating and leading crisis response, given that the fallout often goes hand-in-hand with legal challenges.
The general counsel needs to act quickly by:
a) Defining the crisis.
b) Assembling a team.
c) Creating a flexible plan.
d) Instilling confidence to successfully implement the plan.
Crises come in all shapes and sizes. In some cases, the crisis is so huge that a company’s existence is at stake. But it is equally important to identify when a matter is at the lower end of the crisis scale. It is necessary for the general counsel to classify crises against levels appropriate to a company’s culture and industry.
Levels of Crisis:
a) Level 1: Low – problem identified, but probably only has one day in the press cycle.
b) Level 2: Medium – problem identified and seems significant, but diminishes over time.
c) Level 3: High – problem is an ‘existential crisis’ where the brand is at risk, affecting employees, the board of directors and potentially even the public at large. For a public company, this type of crisis will often have a significant impact on the share price.
Real life tip: Some companies have situation alerts, which immediately warn the GC of an impending situation if a certain number of criteria are met. These alerts can help tease out themes. For example, are there systematic compliance failures which could be building to a major crisis? Are there problems with the chain of command in certain departments or jurisdictions?
A general counsel will typically have a substantial Rolodex of contacts in a variety of industries, who will be able to serve as trusted advisers in a crisis. Advisers will include (but aren’t limited to) people in the following areas:
Real life tip: Don’t panic and ‘over-lawyer’. Less can often be more, as advice may become confusing and contradictory. If a ‘black swan’ event hits, it might appear that immediately consulting a range of advisers is best, but often this is not the case.
When you are in surgery, you don’t want five doctors, each with a scalpel, performing the operation – just one skilled surgeon being allowed to get on with the job.
Information available during a crisis, particularly in the first 24 hours, will often be imperfect. The general counsel must take steps to assess the facts and how they correspond to plans already in place, adjusting responses to the press, regulators and the public accordingly. As more information is obtained, the response plan must also take into consideration regulatory, litigation and communications issues, aligning the strategy of all three.
The company’s employees, particularly those in the c-suite and on the board of directors, will look to the GC to provide assurance that they are effectively handling the process, which means that the GC needs to:
Real life tip: Understand that not all news is created equally.
Social media can descend into noise, and sound bites can become ‘facts’. To avoid this happening, wait for the facts, and assess them thoroughly before making pronouncements in the media. Initial statements can address that all facts are not known, and that the company is waiting to gather these.
As with any leader, the GC needs to remain calm in a crisis in order to be effective. Therefore, the GC:
Using these guidelines, GCs across industry sectors can develop a framework that will not only mitigate damage from a present crisis, but could also avoid future crises.
Pinsent Masons, DLA Piper, Ashurst and Bird & Bird have all missed out on William Hill’s latest UK adviser panel, with Linklaters and Addleshaw Goddard the only firms to retain their places on the FTSE 250 bookmaker’s slimmed-down roster. (August 2017, legalbusiness.co.uk)
Continue reading “Behind the scenes of recent panel decisions”
Mention the word ‘Uber’ in any European capital city these days and chances are you’ll provoke some kind of emotional reaction. Uber is famous – infamous, some might say – for its revolutionary personal transport booking service, but the company is a major player in the personal food delivery business too, with more services to come.
Collaboration is cited as one of the key challenges facing business today. That challenge can be exacerbated for lawyers, due to the very nature of what they do. While humans are inherently social animals, we are just as likely to compete with one another when resources are scarce and conditions are dynamic or uncertain. For some, that could characterise the modern law firm!
Continue reading “Trusted adviser: the power of collaboration”
You wouldn’t normally mistake a lawyer for a designer. One is usually armed with a pen and a rulebook, the other with a Mac and a black turtleneck. Right?
Wrong.
Continue reading “Back to the drawing board – lawyers who think like designers”
Patent ‘trolls’, or non-practising entities, remain a thorn in the side of innovating companies in the US and abroad. But recent developments in both the courts and legislature are simultaneously attempting to deal with the issue – amounting to what could be a sea change for intellectual property law.
For the past three decades, Asia Pacific has been the engine of growth for the global economy. In the wake of the East Asian financial crisis in the late 1990s, a gradual opening of economies and markets, most notably from China, has led to a boom – establishing new pillars of global economic strength alongside traditional mature economies in the region.
When the global financial crisis struck in 2008, the impact reverberated far beyond the traditional financial centres of the west. Initial speculation was that Asia would be relatively well insulated from the crisis due to the growing financial independence of the region. But instead, the effects hit at a speed and depth that surpassed all expectations. Under fire, financial institutions sought to reduce their exposure to the region, resulting in a steep decline in the value of currency and equity markets, at a time when the price and volume of exports was plummeting.