CCCA Magazine - Fall 2016 by CCCA Magazine

Five Simple Rules for Getting Along with Regulators Success Starts From Within Spotlight On... The Corporate Secretary: An Increasingly Vital Role

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SEVEN Tips to Maximize Working WITH EXTERNAL LAWYERS

magazine Fall 2016 Automne | Vol 10, No. 3

Leading Corporate Counsel Le conseiller juridique d’entreprise – Droit devant

Fern Glowinsky CEO, Cliffside Capital

PM 42929530 — Return undeliverable Canadian addresses to: Canadian Corporate Counsel Association, 1210 – 20 Toronto Street, Toronto, ON M5C 2B8

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CCCA

Fall 2016 Automne | Vol 10, No. 3

is published quarterly by

In this issue… Features 14 Seven Tips to Maximize Working with External Lawyers

CANADIAN CORPORATE COUNSEL ASSOCIATION L’ASSOCIATION CANADIENNE DES CONSEILLERS(ÈRES) JURIDIQUES D’ENTREPRISES 1210 – 20 Toronto Street Toronto, ON M5C 2B8 Tel: 416-869-0522 Email: ccca@ccca-cba.org CCCA Chair / PRÉSIDENT de l’ACCJE Stephen Rotstein: Chair@ccca-cba.org Managing Editor / Rédactrice en chef Lynne Yryku: LYryku@ccca-cba.org Associate Editor / Rédactrice associée Karen Sadler: KSadler@ccca-cba.org ADVERTISING / PUBLICITÉ Brian Trotter: BrianTrotter@outlook.com

One of the biggest complaints among in-house counsel is that external counsel don't understand their business. Learn what both parties can do to create a lasting relationship that fuels success. By Jim Middlemiss

20 Five Simple Rules for Getting Along with Regulators

Increasingly more in-house counsel are dealing directly with their regulators, so they are looking to create strong, collaborative ties that makes everyone's job easier and more productive. Here are some best practices to make that happen now. By Pablo Fuchs

28 Success Starts From Within

Your colleagues and executive team are your best resources for learning and advancing. Find out how you can strengthen these connections to enhance your legal and business performance while supporting your company's future. By Julie Sobowale

DESIGN / CONCEPTION ARTISTIQUE Hume Media Inc. Editorial Board Olumide Adetunji Marianne Bolhuis Graeme Deuchars Vera Dokter Sébastien Guénette Wendy King Laurie MacFarlane Sarah McKinnon Michael Rothe ISSN No. 1913-0562 Publications Mail Agreement No. 42929530 Return undeliverable Canadian addresses to: Canadian Corporate Counsel Association 1210 – 20 Toronto Street Toronto, ON M5C 2B8 All rights reserved. Contents may not be reprinted without permission. The opinions expressed in articles are not necessarily those of the publisher. Information presented is not legal advice and should not be relied upon as a substitute for review of your specific situation with legal counsel. Every effort has been made to provide accurate information; however, the publisher assumes no responsibility for errors or omissions. Tous droits réservés. Le contenu du magazine ne peut pas être reproduit sans autorisation. Les opinions exprimées dans les articles ne sont pas nécessairement partagées par l’éditeur. Le contenu du magazine ne constitue pas un avis juridique et vous ne devriez pas vous en servir pour évaluer votre situation particulière. Nous avons tout mis en œuvre afin de fournir des renseignements exacts. Cependant, l’éditeur n’assume aucune responsabilité en cas d’erreurs ou d’omissions.

columns

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4 From the Editor Every interaction is an opportunity to make a connection and provide value. If you are sincere and supportive, your network will help you grow and succeed. 5 From the Chair You asked and we listened. With new and improved career management resources, the CCCA is here to help you from law school to retirement. 8 Profile: Fern Glowinsky Now CEO of Cliffside, this lawyer-turnedbusinesswoman emphasizes the importance of working hard, setting goals and growing relationships. By Michael Dempster 34 Spotlight On… The Corporate Secretary: An Increasingly Vital Role Prominent Board Chairs advise on how this role is changing and the skills you need to excel. By Cathy Cummings 38 CCCA News Meet new CCCA Chair Stephen Rotstein; register to become a CIC.C; and mark the 2017 National Conference on your calendar.

6 Career Management Need help finding your dream job? Key takeaways from the CCCA's recent career boot camp. By Karen Sadler 12 Practice Management The personal elements of business relationships make them effective. Be honest, transparent and responsive to create partnerships that last. By Catherine Chow 41 Legal Innovation Communication and collaboration are keys to success for the in-house and external legal team. By Junior Sirivar 42 Strategic Management A new book discusses how General Counsel can perform at a high level through solid relationships with their Boards. 44 HR Impact More than a workplace, create a community of employees who support each other and the organization. By Gerlinde Herrmann 46 Inside Edge Learn from this virtual inhouse-counsel-for-hire how to empower your coworkers while mitigating risk and containing costs. By Michelle Moldofsky

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{ From the Editor / Mot de la rédactrice }

Effective Relationships

Des relations efficaces

By Lynne Yryku

Par Lynne Yryku

e are all one relationship away from achieving our next goal. To find that relationship, that person, you need to network—effectively and constantly. Like within your legal department, your success depends on the quality of your team. Strengthen and expand your network. When you speak to people with whom you have meaningful connections, tell them what you wish to achieve and what you need to do it. They may know the right person—or even be the right person—to help you reach the next level. Fern Glowinsky, the new CEO of Cliffside Capital, knows this well: “I was transparent about my aspirations. From that, comes opportunity. You need to put it out there, make it known.” Of course, it took more than just putting her intentions out there—she has a track record of getting things done, works well with others and knows her industry. You need to put in the hard work of building trust and making things happen. And every relationship is better when both parties can benefit, so develop and strengthen your relationships based on the value you can bring. “Fostering relationships is one of the most important things,” says Vivian Leung, General Counsel for BlueCat Networks, referring to building internal ties. “You have to encourage people to come to you by giving advice that is practical and helpful, and demonstrating that you understand how the business is run.” Remember to think beyond the office as well. Inside Edge author Michelle Moldofsky cultivates a diverse network through volunteering, and attending events and conferences—things new CCCA Chair Stephen Rotstein also encourages. One of his priorities for the coming year is fostering more knowledgesharing and networking opportunities for members. I hope you take advantage of opportunities to connect with people, new and old. Once you have defined your goal and put it out there, one of these contacts may be the one to help you achieve it—or you may be that person for them! ❚

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ous sommes tous à une relation de distance d’atteindre notre prochain objectif. Pour trouver cette personne, il faut réseauter – de façon efficace et constante. Comme au sein de votre service juridique, votre réussite dépend de la qualité de votre équipe. Renforcez et enrichissez votre réseau. Expliquez ce que vous voulez réaliser aux gens avec lesquels vous avez des liens significatifs. Dites-leur de quoi vous avez besoin pour y arriver. Peut-être qu’ils connaissent – ou qu’ils sont – la bonne personne qui vous aidera à progresser. Fern Glowinsky, la nouvelle PDG de Cliffside Capital, en sait quelque chose : « J’ai été transparente à propos de mes aspirations, puis les opportunités se sont manifestées. Il faut faire savoir ce que l’on veut. » Bien entendu, il ne suffit pas de faire connaître ses intentions – Me Glowinsky est connue pour passer à l’action, collaborer avec les autres et connaître son industrie. Il faut travailler dur pour bâtir la confiance et faire bouger les choses. C’est toujours mieux quand la relation profite aux deux parties, alors développez et renforcez vos relations en fonction de la valeur que vous pouvez y apporter. « Entretenir de bonnes relations est très important », explique Vivian Leung, avocate générale pour BlueCat Networks, à propos des relations à bâtir à l’interne. « Vous devez encourager les gens à venir vous voir en donnant des conseils qui sont pratiques et utiles, et en démontrant que vous comprenez comment l’entreprise fonctionne. » Il y a l’extérieur du bureau, aussi. L’auteure d’Inside Edge Michelle Moldofsky cultive un réseau diversifié en faisant du bénévolat et en participant à des activités et conférences – à l’instar de Stephen Rotstein, le nouveau président de l’ACCJE, dont une des priorités pour l’année à venir est le partage des connaissances et les occasions de réseautage pour les membres. Profitez des occasions de socialiser. Définissez votre objectif et faites-le connaître : un de vos contacts pourrait bien être celui qui vous aidera à l’atteindre – ou vous pourriez être un contact clé pour lui! ❚

{ From the Chair / MOT DU PRÉSIDENT }

Making Connections

Établir des liens

By Stephen Rotstein

Par Stephen Rotstein

n association is only as effective as its members—and we are lucky, as the CCCA has very talented and engaged members. As Chair, and along with fellow Executive Committee members and staff, I intend to make the best possible use of this strength to help you over the coming year. You told us you needed products and services to assist you in managing and growing your career. Visit our website at www.ccca-accje.org to explore our suite of new and improved career management services for inhouse counsel, which are free for all regular members: ■■ Mentorship: Our mentoring program continues to match in-house counsel newer to the profession with more experienced members, who can provide not only relevant and specific guidance but also inspiration and motivation. ■■ Career Coaching: For those of you who prefer a more structured approach to career planning, coaching may be the answer. Browse our list of seven recommended career coaches for in-house counsel and schedule a free consultation to find out. ■■ Job Board: Whether you are looking for a new opportunity or a new hire, our job board is the place. Job seekers can access all the postings for free; rates to post vary across the country. ■■ Career Library: Our resource library is the best source of career tips, tools and advice for Canadian in-house counsel. Content is conveniently grouped under six categories: Starting Out, Job Search and Interview Skills, Networking, Career Advancement, Compensation, and Leadership. The launch of these services coincides with the launch of our new website. More than just a facelift, the new site provides the information you are asking for in a user-friendly way—making it easier for you to use your member benefits and get involved in your association. Ultimately, we want to connect with you wherever you are. The CCCA is a national association spread across numerous industries and sectors. The Executive Committee and staff work hard to provide value for each member—but we also need your help to continue to grow and thrive. I urge you to stay connected to your fellow members by volunteering your time as a mentor (or becoming a mentee if you are earlier in your career); sharing your expertise and insights via Twitter and LinkedIn or even as a presenter; and attending CCCA events, whether in person or online. ❚

ne association est la somme de ses membres – et nous sommes chanceux parce que ceux de l’ACCJE sont talentueux et engagés. En tant que président, et en collaboration avec le comité exécutif et le personnel, j’ai l’intention d’utiliser cet atout au mieux pour vous aider durant l’année qui vient. Vous avez demandé des produits et des services pour construire et gérer votre carrière. Visitez www.ccca-accje.org et faites connaissance avec les services nouveaux et améliorés qui sont offerts aux juristes d’entreprise et gratuitement aux membres réguliers : ■■ Mentorat : Notre programme de mentorat continue de jumeler les nouveaux juristes d’entreprise à des membres d’expérience capables d’offrir des conseils pertinents, mais aussi d’inspirer et de motiver. ■■ Accompagnement professionnel : L’accompagnement en matière de carrière peut être la solution pour ceux et celles qui préfèrent une démarche de planification plus structurée. Pour en savoir plus, consultez la liste des sept accompagnateurs recommandés pour les juristes d’entreprise et recevez une consultation gratuite. ■■ Tableau d’affichage des offres d’emploi : Que vous soyez en quête d’un nouveau défi ou d’un nouveau talent, notre tableau d’affichage s’adresse aux juristes d’entreprise. La consultation est gratuite et le prix pour placer une annonce varie à travers le pays. ■■ Centre de documentation sur les carrières : C’est votre meilleure ressource pour trouver des astuces, outils et conseils relatifs à la profession de juriste d’entreprise au Canada. Six thèmes sont couverts : Entamer sa carrière, Recherche d’emploi et techniques d’entrevue, Réseautage, Avancement professionnel, Rémunération et Leadership. Le lancement de ces services coïncide avec celui de notre nouveau site Web, qui a été complètement repensé afin de fournir l’information de façon conviviale – pour vous aider à profiter de vos avantages et à vous impliquer au sein de votre association. Nous tenons à être en contact avec vous, où que vous soyez. L’ACCJE est une association nationale active dans de nombreux secteurs et industries. Son comité exécutif et son personnel travaillent activement pour que chaque membre y trouve son compte – mais nous avons besoin de votre aide afin de grandir et prospérer. Je vous invite à rester en contact avec vos collègues en offrant bénévolement du mentorat (ou en devenant mentoré, si votre carrière est jeune), en partageant sur Twitter et LinkedIn, ou encore en participant aux événements de l’ACCJE, en personne ou en ligne. ❚

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Thriving in Times of Uncertainty By Karen Sadler

Are you where you thought you’d be when you started your career? Many people aren’t, due in part to today’s economic climate. We live in an era of corporate downsizing, a growing gig economy and frequent recessions. You might be underemployed, unhappily employed or unemployed; and the only thing certain is uncertainty.

n response to the changing times, the CCCA recently hosted a Career Management Boot Camp for in-house counsel, generously sponsored by LexisNexis. Here are the key takeaways from the experts.

The Rules Have Changed Much of the career advice you were given in the past is no longer relevant. According to Tracey Martin, a career coach based in Calgary, in-house counsel need to learn how to take control of their career progress if they want continued professional success and financial stability. “Change is constant,” she explains. “Most people change jobs every four years or so. Job search skills are some of the most important skills you can develop. You need to do what’s best for you, just like companies do.” Martin encourages her clients to act with the same self-interest, objectivity and forethought as any organization would. In fact, she suggests in-house counsel start thinking of themselves as a new start-up company—one that must survive and thrive for years. You have skills and experiences to sell (your “products and services”) and they need to meet the demands of the marketplace. If they don’t, you’ll soon find yourself irrelevant. To succeed, you’ll need: ■■ Research and development: Determine what you have to offer and where the demand for your particular skill set is needed.

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Strategic planning: Think about what you want your future to look like and identify the opportunities that may help pave the way. ■■ Marketing and sales: Devote time to establish credibility and perfect your marketing mix (resume, interview skills, online presence, etc.) ■■ Financial planning: Invest your funds with the same care as you invest time in yourself. Make your money work for you. Eric Wai, Managing Director at LexisNexis Canada Inc., has successfully etched out an alternative career for himself. He spoke about the changing rules of career progression. Wai stressed the importance of both understanding the innovations taking place in the legal field and embracing the new opportunities they bring. In-house counsel who can read the signs of change and look forward will be in a better position than most of their competition. ■■

Honesty is the Best Policy Adam Pekarsky, Founding Partner of legal recruitment firm Pekarsky & Co., stresses that when it comes to explaining employment gaps, describing your skill set and interviewing, honesty is always the best policy. “Don’t overthink a gap in your employment due to a recession. Lots of people are in that boat,” he explains. You should be honest about how you spent your time away from the workforce, whether you were travelling, looking for work or vol-

{ Career Management }

unteering (which, Pekarsky adds, is a great way to continue networking and building your expertise). As for your skill set, Pekarsky urges in-house counsel to “demonstrate the transferability of your skills. Read the job description closely. You need to meet all or most of the qualifications listed. It’s important to play to your strengths.” Though this advice can seem discouraging, job seekers need to remember this is an employer’s market. Rejection is a reality, and in times of recession, Pekarsky advises his clients to “be open-minded and willing to work for less.” As for cultivating your interview style, Pekarsky highlights that it’s all about authenticity. “Put your heart on your sleeve. It sells and it’s easy to do if you’re truly interested in the position.” He advises against using canned, practiced answers during an interview. It’s better to give an authentic answer than the answer you think the employer wants to hear. Finally, it’s important to show genuine enthusiasm. An interview is not only about the answers you’re giving but also about your

tone of voice and body language. Don’t be afraid to smile, laugh and ask thoughtful follow-up questions.

Be Online

■■

Did you know that 75% of recruiters go to LinkedIn as a first source when they are looking for people? It’s 2016, and you need to have a professional online presence. Tracey Martin explains that it’s all about “fostering visibility, accessibility and connectivity.” If you’re not already familiar with LinkedIn, Martin describes it as “a professional, business-oriented social media site that allows you to connect with millions of other people, enabling you to build a strong network of connections that can help you reach your career goals and assist with your job search.” When creating or improving your LinkedIn profile, “it’s important to keep in mind what you want to achieve,” she continues. “Don’t try to be all things to all people. Let your personality shine through.” As to the most important things to include in a well-built LinkedIn profile, the following are key:

■■

A professional headline describing your expertise and level of seniority An indication that you are in active job search mode A good-quality, friendly-looking headshot Frequent updates to keep your profile current and visible (such as sharing articles of interest, updating your profile with recent achievements or publications, writing posts, etc.) A listing of your skills and career experiences

Bring It All Together There’s no doubt that searching for a job, especially in times of uncertainty, is mentally and emotionally draining. However, when you begin to take control of your career progression, are honest and realistic about your current situation, and develop a vibrant online presence that showcases your skills and talents to new connections, you’ll be one step ahead of the competition. ❚ Karen Sadler is the Marketing and Communications Coordinator at the CCCA.

Recognize Your Team in CCCA Magazine

You can now place appointment notices in CCCA Magazine to announce promotions, new additions and other achievements within your team. Your news will be delivered to approximately 6,000 in-house counsel and senior executives across the country both in print and online—with a link to your website featured in the digital version at no extra cost. ➜

To learn more, contact Brian Trotter: briantrotter@outlook.com

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Ready for the

Next Big Thing By Michael Dempster

Fern Glowinsky practised law for much of her professional career. It never disappointed. But business has always been in her blood. This September, she moved to Cliffside Capital Ltd. As company CEO, she’s exactly where she set out to be.

lowinsky has always been one to put her hand up. To take on more responsibility and tackle new things. It’s a characteristic that helped her thrive in a law career that began in 1996, a trait she exercised at Moneris Solutions Corporation for 15 years, and one she’s sure to use in her new role at Cliffside, a public company listed on the TSX Venture Exchange. Stepping into her new role, she says, provides an exciting and unique opportunity to deliver on the market need for diversified funding sources to support the rapidly changing, technology-led consumer and commercial lending marketplace. It’s a welcome challenge—like the one Glowinsky accepted in 2001 when she joined Moneris as General Counsel and Corporate Secretary. The company, created in late 2000, was a joint venture, combining the merchant payments business of RBC Royal Bank and BMO Bank of Montreal. It was the perfect platform for Glowinsky’s migration to a pure business role.

“When Moneris was formed, we inherited a lot of people from the banks, technology and a huge customer base,” she says. “But the infrastructure that would have historically been provided by the banks, for example a legal function, didn’t exist.” Glowinsky’s task was to establish legal, compliance and internal audit functions. She took on government relations and, as Corporate Secretary, created the components needed to support that role and the Board of Directors. She hired talent, built a team and began the important process of forging relationships in order to partner across the business and deliver on a corporate strategy. “There was a whole lot of legal business, too,” she says. “I used to joke at the time that it was like going to a store where you have to take a number and wait your turn. Now serving Number 7, Number 8…. There was always a lineup outside my door.”

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I had a track record of getting things done and knew the business incredibly well. That was just me being me and wanting to understand it. Being in a legal function you get such deep exposure to the entire business.

Opportunity was knocking. Glowinsky dove into the business. In time, she saw another role that was achievable: Chief Operations Officer. Ambitious, always looking toward “the next big thing,” she felt her resume made her a strong candidate. “I had a track record of getting things done and knew the business incredibly well. That was just me being me and wanting to understand it. Being in a legal function you get such deep exposure to the entire business.” Glowinsky knew the Board well from her role as Corporate Secretary. She had a positive internal and external profile, and let it be known she wanted the job. In January 2014, she took the reins as COO. She reported to the CEO and oversaw a staff of 900. The appointment to a pure business role was something to which she had always aspired. Glowinsky grew up in Toronto and worked from a young age. There was babysitting, working in retail, even doing telephone marketing surveys. Forbes, not People, was a more likely magazine of choice. “Business was just what I liked, what I gravitated toward. I also watched my dad grow his business and be successful. My parents had a strong work ethic. I was the same.”

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Her parents encouraged their middle child to do whatever interested her. She enjoyed math and business in high school and earned a BA in economics at the University of Western Ontario. After graduation, and not sure what area of business to pursue, her sister-in-law, then a law student, suggested the joint LLB/MBA program at York University. Glowinsky was accepted into the fouryear program and graduated in 1995. Between 1996 and 2001, she practised first with Torys LLP, followed by in-house roles at e*Trade Canada and wheresfrankie.com, where she was viewed as a commercially oriented lawyer. Then, after building and leading the legal team at Moneris, she took the COO post. Some people wondered why she would do so, putting aside the skills and knowledge she had developed. “I didn’t think I was leaving anything behind. It’s still in me. I will always use everything I’ve learned and experienced. You are constantly adding to what you bring to the table.” It’s the philosophy and skill set that she takes to Cliffside, an early stage public company that will focus on the alternative lending marketplace. Glowinsky will again take on a new challenge, something she loves to do. And she will work within a new slice of the fin-

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tech sector that has pretty much straddled her whole career. The CEO position evolved through networking and putting her hand up, she explains. As COO at Moneris, she was constantly talking to a wide range of people externally about Moneris and the payments sector. “You hear their story and you tell your story. I was also transparent about my aspirations. From that, comes opportunity. You need to put it out there, make it known.” In addition to a career, Glowinsky and her husband have twin teenaged boys. Setting priorities, “maybe not seeing friends as often as you’d like,” is how she finds balance. “I’m not saying it’s always easy. I was just determined to make it work. We have a few family holidays a year and that time is sacred.” Between family, community work, her day job and three “detoxing” Bikram yoga classes a week—“I love it because I’m always cold!”—her calendar is filled. Just the way she likes it. “My husband once said to me: ‘When are you done?’ I said, ‘Never.’ Why would I want to be?” There’s so much more ahead to tackle and learn, she says. So many reasons to keep putting her hand up. ❚ Michael Dempster is a writer based in Calgary.

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{ Practice Management }

Balanced Relationships: The Key to Success By Catherine Chow

Successful in-house counsel know how to build and grow relationships. Although some may regard the in-house career path as a welcome relief from having to attend dreaded networking functions, the opposite is true. When you are in-house, you need to focus more than ever on effective relationships.

ithout a client roster to measure success, in-house counsel too often get caught up in the daily grind of drafting documents and reviewing contracts, and fail to see opportunities to build relationships with the people they work with—internal, external, competitors or even potential employers. Those who create those relationships are able to get the job done better, advance more quickly, and contribute meaningfully to their company and community. In-house counsel with excellent internal relationships, especially at the executive level, are consulted on important business decisions. Solid external counsel relationships mean firms will come through for you to meet tight deadlines during challenging times. Authentic relationships in the wider profession or industry enable you to grow, as you learn emerging best practices, share resources or commiserate over common struggles. The reality is that business relationships are just like any other relationship: they require commonality to start, effort to maintain and authenticity to succeed. Put simply, effective relationships must meet the basic principle first learned in law school: quid pro quo. Expanding on that basic view, you get what you give.

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Reality check: does what you give in your business relationships match what you take? With external counsel, your company pays their firm; there is quid pro quo in the business transaction. In your relationship with the lawyers and support staff you rely upon, what do you give? Do you offer respect and trust by being honest with your assignment deadlines or divulging their true purposes? Do you give gestures or words of appreciation? One of my most memorable relationship mistakes was not trusting my external counsel with all the facts of a particular assignment; we were locked into a pattern of mistrust and suspicion. I had hired local counsel to handle a small acquisition. The firm produced a basic buy-sell agreement suitable for an independent “mom and pop” type acquisition. I had not told them that my company’s corporate and financing structure required the acquisition to be vetted a particular way. So in response to the basic agreement they had provided, I sent extensive feedback, elaborate reps and warrants, and introduced additional terms. The firm suspected I had other lawyers reviewing the work, and they became increasingly frustrated and offended. Ultimately, when I had to lean on them

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to close the transaction quickly, they refused. The firm flatly said, “Why would we extend ourselves to help you when you didn’t extend any trust to us?” I was shocked and embarrassed. They were right. I expected them to work late and pull out all the stops, but I was not honest in framing the assignment; I only critiqued their work. I ended up with a delayed transaction, unhappy counsel all around, and a feeling of ineffectiveness because I had failed to manage the business relationship. In another instance, when I got a business relationship right, it was eye opening how important good relationships are to succeed. I was asked to evaluate and upgrade our company’s insurance and risk management program, from placement with insurers to final claims management. The start of the procurement process was typical: a lineup of brokers presented their products and services—but there was an air of inauthenticity; they all just seemed to want to “land our account.” I realized they were mirroring what we were offering in the relationship: we bragged about the company’s claims history and complained about pricing, but we didn’t share our true challenges. On the second round of interviews, I turned the tables and pitched the brokers instead. I travelled to meet with brokers and their insurers directly. I was candid about our company’s risk exposures and mistakes we had made in the past. In turn, brokers were honest about their capabilities, and some even said their competition was a better fit. By building the relationship on honesty, we were able to select the right brokerage and insurer to meet our evolving needs.

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That business relationship has been wildly successful. Through difficult claims, hardening markets and exhaustive board review, the insurance program emerged victorious because the foundational elements of the relationship were solid. Honesty and mutual respect are key to an effective relationship and enhance my effectiveness as in-house counsel for the company and as an industry leader. Like any relationship, growing a business relationship requires care, such as contacting people when you do not need something from them. If I only heard from the broker when they wanted to get paid, or if they only heard from me when I needed help on a claim, it wouldn’t be much of a relationship. We take the time to check in on each other’s business because we believe the other’s business is as important to us as ours is to them. We

“

The reality is that business relationships are just like any other relationship: they require commonality to start, effort to maintain and authenticity to succeed.

also encourage honest feedback and say thank you. As in-house counsel, it is not only critical but exceedingly rewarding to build and strengthen relationships within your department, company and community. Work becomes more enjoyable when you connect with and support colleagues. Executive engagement increases when you are brave enough to provide honest feedback, not just be an echo chamber. You become the go-to counsel for not only le-

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gal issues but also wider business matters. This professional respect is valuable and at the root of a successful career. ❚ Catherine Chow is Vice-President Legal and General Counsel at Keg Restaurants Ltd, where she manages the legal matters of more than 100 locations across North America. Her proactive approach to risk management has been recognized as an industry-leading initiative, winning both a 2014 Canadian Lawyer In-house Innovatio Award and a 2014 Lexpert Zenith Award.

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When loyalty rewards program provider Perk.com recently hired a U.S. law firm to help the Waterloo-based company with its rapidly expanding IP portfolio, Amy Hastings was impressed that the firm flew up to Canada at its own expense to learn more about the company’s business. The Vice President of Corporate Development (also responsible for legal issues) says the firm told her it was because “we want to hear what you guys are working on.”

astings, who joined Perk.com a year ago after working at two different Canadian law firms, says the U.S. firm wanted to learn about Perk.com’s past portfolio and the goals of the company, which has been growing through mergers. She calls it “a helpful approach,” since in most business development meetings with law firms, very little time is spent talking about what the company does versus who the law firm is. It was a nice touch. “Understanding their client’s business allows [law firms] to act in a very practical way, rather than just applying the law by the book,” Hastings explains. “When you first meet someone and don’t ask the very preliminary questions, the longer you leave that, the more [difficult] it becomes understanding the business.” One of the most common complaints raised by in-house legal departments is that their external law firms don’t understand their business. In fact, in-house lawyers give law firms a B-minus, says Michael Rynowecer, President of BTI Consulting Group in Wellesley, Mass., which surveys in-house lawyers, and works with law firms and legal departments. “One of the weaker points in law firms is that they don’t take the time to understand the business or discuss the business implications,” says Rynowecer. “Many just want to analyze the legal issues.” It raises a chicken and egg question. Is it the law firm’s role to learn the client’s business or is it the client’s job to educate the law firm about what the company does? Shawn McReynolds, Managing Partner at Davies Ward Philips & Vineberg in Toronto, believes it is the former. “We are the service provider. The onus falls on us to take the initiative to be proactive and to go out of our way to understand our clients’ business and their needs.” While that may be true, the reality is that corporations know their business better than any law firm ever could. Companies sit on a repository of information their professional advisors don’t always see. Nor are those advisors always privy to business and strategic plans.

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“It’s a bit of a symbiotic relationship,” explains Fernando Garcia, General Counsel of Nissan Canada in Mississauga. He believes the key to success is the level of interest the lawyer has in his or her client and that person’s willingness to dig into the business supported by the company. “The onus is really on both parties,” suggests Chris Fowles, Partner at Torys LLP, who runs its Halifax office, providing nearshoring legal services to corporations. Most law firms are focused on bringing clients up to speed about legal developments, often through continuing education seminars. Not much focus is placed on business education seminars, where the parties can swap details about corporate direction and challenges. Compounding matters is the shifting nature of business development. While meals, drinks, golf, sports outings or free tickets used to be key tools to build closer relations and tighter bonds between external counsel and their legal clients, the reality is that corporations are getting much more stringent in their policies about accepting such freebies, notes Garcia. Add Canada’s Anti-spam Legislation (CASL), which restricts the ability of lawyers to market their services, and it is changing the nature of relationship building, he says. “It’s taken away a big tool…to reach out and develop a relationship,” calling it an “unintended consequence” of CASL. Then factor in the fear of the billable hour, which makes inhouse lawyers reluctant to reach out to their external providers, and it creates an environment that is counter-productive to relationship building. So what’s the trick to building better relations between inhouse legal departments and their law firms in the 21st century? Certainly much of the initiative falls on the shoulders of the law firm. Nonetheless, there are steps that in-house lawyers can take to foster building the perfect relationship—one that is collaborative, proactive and built on trust.

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S even Ti p s

to Maximize Working with Externa l Lawyers By Jim Middlemiss

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Here are seven strategies that in-lawyers can deploy to help build better relations between in-house legal departments and their external law firms.

1. Encourage site visits Simply inviting external lawyers to stop in and see operations is a good start, experts say. So instead of attending that lunch, dinner or ball game, plan a site visit instead. Although it’s not yet common, McReynolds says site visits are valuable: “It allows our team to get up to speed in understanding the client’s affairs better.” Moreover, he says, “it’s usually well appreciated. [Clients] are usually delighted to host us and show us around.” It can be beneficial on a number of fronts. Garcia recalls working for a previous employer where one external labour lawyer would frequently stop by for tours of the client’s sites. Garcia says the lawyer “felt it was important to understand what the employer deals with. That was great. We knew he was interested and it was an incredible opportunity for him to learn about the environment. When a matter came up, he would have a good understanding.” Those onsite visits can also trigger instant results. Rynowecer recalls a shoe company whose external counsel visited regularly. The lawyer noticed that a new shoe line was going to be shipped in different boxes. The lawyer advised that if the company changed the size of the box by a few millimetres, it would avoid a tariff. It saved the company millions of dollars, he says, adding that “the General Counsel was never going to ask that guy his rate again!”

2. Consider operational training and mock drills Don’t assume external lawyers understand the finer points of your operations. Take donut and coffee giant Tim Hortons. When it was sued by a franchisee in a $2 billion-dollar class action, which it later won, the litigators in the case underwent product preparation training. Danielle Royal, Partner at Stikeman Elliott in Toronto, found it valuable. It showed the legal team how changes to the baking methods impacted restaurant operations, which was relevant to the litigation, she explains. “Being behind the counter and making the product, it means a lot.” Another method her firm deploys is mock drills. Royal’s litigation focus is competition. As a litigator, she says, “you don't generally have a good sense of what is happening on the ground on a day-to-day basis.” Rather, “you are often brought in after a problem has arisen.”

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She notes in competition matters, enforcement authorities frequently show up “early in the morning, typically before anyone very senior has arrived at the office, to execute a warrant.” “It's something that can happen to the client,” she says, so Stikeman will run a mock drill with its lawyers to replicate an enforcement authority’s dawn raid situation. “It makes the experience feel much more real and hands on,” and it tests the company’s policies and procedures’ checklist under fire. Royal notes that legal compliance seminars can be “very boring for business people,” so introducing a dose of real-life experience and real-life fact situations can help spice up a dry topic. Jonah Mann, Partner in Stikeman’s corporate group, adds that such drills can also be applied to the corporate realm and company boards to “prepare them for public takeover situations or proxy contests.”

3. Use relationship managers Ian Osellame, Assistant Vice President, Lead Counsel and Corporate Secretary for Manulife Bank, says one of the key ways to foster better relations is ensuring there is a relationship manager in place between the law firm and the company. “Make sure there is one person on the ground quarterbacking it for the law firm, and make sure that person is aware of important files the firm is doing for the company and is available on those files.” It’s about “more than drinks and steaks,” he says. For it to work, the relationship manager has to invest the time and energy to really get to know the business and key people. Another thing he is seeing is the development of relationship managers in-house—lawyers who are tasked with overseeing aspects of the law firm’s relationship with the client to foster better communications between the two. “It’s less common, but I see more of it.”

4. Expose them to your business and mid-level people Often in-house lawyers are the filter between the business lines and the external law firms—but it doesn’t have to be that way. Fowles says, when possible, “I like to sit down with the business people using the contracts on a daily basis. You often get very different perspectives.” For the in-house lawyer, it’s about managing risk, but for the person using the contract, it’s often about ease of use. He says it’s

“great to sit down and get a little bit of that broader perspective and get the business people in the room. It's ideal if we can accomplish that.”

5. Share your expertise Companies are often leaders in their industry and law firms can learn from them. Open the doors and encourage it. Rynowecer recalls one instance where a law firm working with General Electric, a proponent of adopting Six Sigma techniques for modeling manufacturing and business processes, asked GE to train the firm on the techniques. It builds tighter bonds and provides you with confidence that the law firm is on the same page.

He who wins last, wins. Whether you won at trial and face an appeal or lost at trial and wish to launch an appeal, we can help you determine the final outcome for your client.

6. Share your thoughts about work processes Chances are if you have thoughts or questions about your operations, so does your external counsel. But you both might be missing an opportunity by not addressing it. For example, Fowles says his firm was looking at a way to make one of its relationships with a client more effective. So it prepared a process map on how the client and firm interacted on certain matters and took it to the client to see how they could make it more efficient and reduce bottlenecks and repetition. It turns out the client was thinking about the same thing. “It was a way for us to start a dialogue with them,” he says.

7. Bring them into the inner circle There is a lot of information prepared for executives and boards about company operations and strategy. Why not bring key lawyers from your external law firm into budgeting sessions or strategy sessions where they can get to know about corporate direction? At the very least, share some of the slide decks and memos those lawyers might not otherwise see. McReynolds says he has been invited to management retreats and found them helpful on two fronts. The first was learning more about the business, and the second was “building personal relationships with senior management and getting to know more of them.” While building relationships and understanding the business is critical, Perk.com’s Hastings says it is important that risk tolerance doesn’t get overlooked in the process. “The sense of risk that the client is willing to bear can be just as important for a [law] firm to understand as it is understanding the [company’s] business.” ❚

To sign up for the Lerners’ Appellate Advocacy Netletter, visit www.lerners.ca/appealsnetletter Toronto: 416 867 3076 Earl A. Cherniak, Q.C., William Pepall, Kirk Boggs, Mark Freiman, Angus McKinnon, Bryan Smith, Jasmine Akbarali, Brian Radnoff, Cynthia Kuehl, Jason Squire, Stuart Zacharias London: 519 672 4510 Peter Kryworuk, Andrew Murray, Carolyn Brandow

Jim Middlemiss is a writer based in London, Ontario.

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Sept s l i e s n o c

pour tirer profit des relations avec les conseillers juridiques externes

orsque le fournisseur de programmes de fidélisation Perk.com a embauché récemment un cabinet juridique américain pour l’aider à gérer son portefeuille de propriété intellectuelle en pleine expansion, Amy Hastings a été impressionnée quand la firme s’est déplacée au Canada pour en apprendre davantage sur les opérations de la compagnie basée à Waterloo. La vice-présidente au développement (aussi responsable des questions juridiques) dit que la firme lui a expliqué que « nous voulons savoir ce sur quoi vous travaillez ». Me Hastings, qui a joint Perk.com il y a un an après avoir travaillé au sein de deux cabinets canadiens, indique que la firme américaine voulait en apprendre davantage sur Perk.com, son portefeuille passé et les objectifs de la compagnie, qui a pris de l’expansion par l’entremise de fusions. Elle juge qu’il s’agit d’une « approche utile », puisque dans la plupart des rencontres de développement d’affaires avec différents cabinets, on passe peu de temps à parler de ce que la compagnie fait, par rapport au cabinet lui-même. « Comprendre les opérations du client permet [aux cabinets] d’agir d’une manière très pratique, plutôt que de simplement appliquer le droit tel quel », explique Me Hastings. « Lorsque vous rencontrez quelqu’un pour la première fois et que vous ne posez pas les questions très préliminaires, le plus longtemps vous laissez cela de côté, le plus [difficile] ça devient de comprendre l’entreprise. » L’une des critiques les plus fréquemment formulées par des départements juridiques internes est que les cabinets externes ne comprennent pas l’entreprise. En fait, les conseillers internes accordent un B moins aux cabinets, estime Michael Rynowecer, président de BTI Consulting Group à Wellesley au Massachusetts, qui sonde les conseillers juridiques internes et travaille avec des cabinets externes et des départements juridiques. « L’un des points faibles des cabinets est qu’ils ne prennent pas le temps de comprendre les opérations ou de discuter des implications commerciales, dit-il. Plusieurs ne veulent qu’analyser les questions juridiques. »

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Cela pose la question de l’œuf ou de la poule. Est-ce que c'est le rôle d’un cabinet de comprendre l’entreprise de son client, ou celui du client de renseigner le cabinet au sujet de la compagnie? « Nous sommes les fournisseurs de services. C’est notre responsabilité de prendre l’initiative d’être proactifs et de faire l’effort de comprendre l’entreprise de nos clients et leurs besoins », soutien Shawn McReynolds, associé directeur chez Davies Ward Philips & Vineberg à Toronto. La réalité demeure que les entreprises connaissent leurs opérations mieux que quiconque. Elles sont assises sur une mine d’informations que leurs conseillers ne peuvent pas toujours voir ou connaître. « C’est une relation plutôt symbiotique », note Fernando Garcia, avocat général chez Nissan Canada à Mississauga. Il croit que la clé du succès se situe dans le niveau d’intérêt que l’avocat a à l’égard de son client et sa volonté de creuser pour trouver les informations utiles. « La responsabilité revient réellement aux deux parties », estime quant à lui Chris Fowles, associé chez Torys LLP et qui gère son bureau d’Halifax. Alors quel est le secret pour bâtir de meilleures relations entre les départements juridiques internes et les firmes externes? À coup sûr, une bonne part du travail revient aux cabinets. Néanmoins, il existe certaines étapes que les conseillers internes peuvent suivre pour bâtir de meilleures relations – des relations proactives basées sur la collaboration et la confiance. Voici donc sept stratégies à utiliser par les conseillers juridiques internes pour bâtir et entretenir de meilleures relations entre les départements juridiques internes et les cabinets externes.

1. Encouragez des visites sur place Simplement inviter des avocats de l’extérieur à visiter les opérations peut être un bon départ. Donc plutôt que les traditionnels lunchs, soupers ou joutes de baseball, planifiez plutôt une visite des lieux. Bien qu’elles ne soient pas encore si courantes, Me McReynolds juge que ces visites sont utiles. De plus, dit-il, c’est souvent « très apprécié. [Les clients] sont généralement enchantés de nous accueillir et de nous montrer les lieux. »

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Ces visites peuvent aussi produire des résultats immédiats. M. Rynowecer se souvient d’une compagnie de souliers que l’avocat externe visitait régulièrement. Ce dernier a remarqué un jour que la compagnie allait lancer une nouvelle ligne qui serait expédiée dans une boîte différente. Il leur a alors recommandé de changer la taille de la boîte par quelques millimètres seulement, pour éviter certains tarifs douaniers. La compagnie a ainsi pu sauver des millions de dollars, ditil, et « l’avocat général n’allait plus jamais lui parler de son taux horaire! »

pas toujours à être faites de cette manière. Me Fowles soutient que lorsque c’est possible, « j’aime m’asseoir avec les gens de l’entreprise qui se servent des contrats sur une base quotidienne. Vous avez souvent des perspectives très différentes ». Pour le conseiller juridique interne, les contrats visent à minimiser les risques, mais pour la personne qui les utilise, le plus important est souvent la facilité d’utilisation.

5. Partagez vos connaissances

2. Considérez des exercices et de la formation N’assumez pas que les conseillers externes comprendront les aspects les plus précis ou techniques de vos opérations. Prenez l’exemple de la chaîne Tim Hortons. Lorsqu’elle a été poursuivie par un franchisé dans un recours collectif de deux milliards de dollars (qu’elle a éventuellement gagné), les avocats impliqués dans le litige ont suivi une formation de préparation des produits. Danielle Royal, associée chez Stikeman Elliott à Toronto, a trouvé l’exercice très utile. Il a démontré à l’équipe juridique la manière dont les changements aux méthodes de cuisson ont eu un impact sur les opérations, ce qui était pertinent pour les procédures, dit-elle. Les simulations sont une autre méthode. Me Royal pratique dans le domaine de la concurrence. Elle note que les organes de surveillance font souvent leurs perquisitions tôt le matin. Stikeman organise donc des simulations où ses avocats reproduisent une telle situation. « Ça rend l’expérience beaucoup plus réelle et tangible », et ça permet de tester l’efficacité des politiques et des procédures en vigueur au sein de l’entreprise.

3. Nommez un gestionnaire de ces relations Ian Osellame, vice-président adjoint, avocat général et secrétaire de la Banque Manuvie, estime que l’un des moyens les plus utiles pour maintenir de bonnes relations entre l’entreprise et les cabinets juridiques externes est de nommer une personne responsable de ces relations. « Assurez-vous qu’il y a une personne qui coordonne le tout pour l’ensemble de l’équipe, et assurez-vous que cette personne est au courant des dossiers importants », dit-il.

4. Exposez les cabinets externes à votre entreprisE et aux employés intermédiaires Souvent, les avocats servent de filtre dans les relations entre l’entreprise et les cabinets externes, mais les choses n’ont

Les entreprises sont souvent des chefs de file dans leur industrie et les cabinets peuvent tirer profit de leur expertise. Ouvrez-leur vos portes et encouragez cet échange d’information.

6. Partagez vos réflexions sur les processus internes Si vous avez des questions ou des réflexions sur vos opérations, il y a de bonnes chances que votre conseiller externe en ait aussi. Mais vous pourriez manquer une opportunité en évitant de les partager. Par exemple, Me Fowles dit que sa firme cherchait un moyen de rendre ses relations avec l’un de ses clients plus efficaces. Elle a alors préparé une feuille de route sur la manière dont les clients et la firme interagissaient sur certaines questions, et l’a montrée au client pour déterminer comment ils pourraient rendre ces interactions plus efficaces et réduire les engorgements ou les répétitions. Il s’est avéré que le client pensait la même chose.

7. Impliquez-les dans le cercle des initiés Beaucoup d’information est préparée pour les dirigeants et les administrateurs au sujet des opérations et des stratégies. Pourquoi ne pas impliquer vos cabinets externes dans vos sessions budgétaires ou de stratégie, où ils pourraient en apprendre davantage sur les orientations de l’entreprise? À tout le moins, partagez une partie de la documentation pertinente avec eux. Me McReynolds a lui-même trouvé très utile d’être invité à des retraites destinées aux membres de la direction. Il a pu en apprendre davantage au sujet de l’entreprise, dit-il, et « bâtir des relations personnelles avec les hauts dirigeants et apprendre à les connaître davantage ». Bien que de bâtir des relations et de comprendre l’entreprise sont des aspects cruciaux, Amy Hastings de Perk.com note qu’il est aussi important que la tolérance au risque ne soit pas négligée dans le processus. « Le niveau de risque que le client est prêt à supporter peut être tout aussi important à saisir pour un cabinet [juridique] que de comprendre les opérations [d’une entreprise] ». ❚

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5Rules

Simple

for Getting Along with Regulators By Pablo Fuchs

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eg Restaurants Ltd. was caught in an unfortunate and unlikely situation recently, in which the liquor licence for one of its locations was about to expire due to a series of unforeseen circumstances. An important document was sent to the location rather than the appropriate liquor regulator; the main contact at the liquor regulator was away on vacation; and, after several attempts to get in touch with that contact’s backup, it was discovered that the person had fallen ill. Catherine Chow, Vice-President Legal and General Counsel, who manages the legal matters of more than 100 restaurants across North America for the company, knows that of the many complex relationships she and her team manage, few are as sensitive—or can have such a profound impact—as those with the regulators that oversee their business. As such, she’s fully aware that ensuring in-house counsel have strong, cordial, open and collaborative relationships with regulators can pay off greatly. “We followed up and found a live body to get a hold of, which is very challenging because they deal with a lot of files,” she says. “But we’re a big chain, so liquor regulators and other regulators know us. We’ve been in business for 40 years. Knowing that, and who we are, helped us resolve communication gaps that occurred naturally.” Such situations could become more commonplace as inhouse counsel across various industries are placing a greater emphasis on building closer relationships with regulators than ever before. “When I began in this position 11 years ago, it was rare for me to have any discussions with corporate counsel. Typically, I was discussing issues with a private lawyer who had been hired to handle a matter,” says Heidi Schedler, Senior Enforcement Counsel with the Nova Scotia Securities Commission in Halifax. “Now, we’re dealing more and more with in-house counsel directly, so it seems that there’s a move to have these matters dealt with and handled in-house by the corporation, which is great for us as well. We’re happy to deal with corporate counsel in any capacity.” The challenge for most in-house counsel in dealing with regulators is doing so in a way that allows you to get along best with them while looking out for and protecting your organization’s best interests in the process. Here are five best practices for balancing these tasks.

Understand and respect the regulator’s role Most companies have to deal with more than one regulator, so being understanding of each regulator and its role is critical to the way you build and manage those relationships. Daniel Desjardins, Senior Vice-President, General Counsel and Corporate Secretary with Bombardier Inc., knows a lot about dealing with various regulators. As his company builds trains and airplanes for the global market, he and his team have to work with transportation regulators in 26 countries, including Transport Canada at home. In addition, with Bombardier being a public company, it has to engage directly with various securities regulators and others, as needed, on an ad hoc basis, such as the Competition Bureau when completing a merger or acquisition. “In all cases, we try to establish a good rapport with regulators on an ongoing basis. In the case of Transport Canada, we have a very good relationship because it’s a daily, long-term relationship. Same thing on the securities front. As a public company, we always comment and engage with regulators when they come up with draft proposals,” he says. “So, for us, dealing with regulators as key stakeholders is always beneficial.” It’s not just understanding the various regulatory bodies and where they fit, but the staff that you deal with at each regulator as well, says Chow. “You really have to understand their role. So, if you’re looking for an approval process at a securities commission or a routine filing, understanding who you’re dealing with and where that person fits into the regulatory scheme is number 1.” Much like in any other business relationship, making the effort to get to know regulators to gain a greater understanding of who they are and why they make the decisions that they do is essential, says Brian Koscak, President and General Counsel at Pinnacle Wealth Brokers Inc. in Calgary. Having said that, always be mindful of the role they occupy in the relationship: “Never forget that they’re the regulators.” Regulators are sometimes going to make decisions that you don’t like or that will impact your business negatively. Although you may not like their decisions, look at why they made them, Koscak says. “You have to ask yourself, ‘Do I understand their arguments even though I may disagree?’ But once their decision is done and it’s out there, you have to adapt.”

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Take the right approach

Be prepared

Given that there are going to be times when regulators are contemplating making a decision you don’t agree with, the approach you take in dealing with that is vital. “Try not to make it confrontational…keep in mind their role and be respectful of it,” says Greg Sainsbury, General Counsel and Secretary with Horizons ETFs Management (Canada) Inc. in Toronto. “If you have a strong position, you want to advocate it respectfully and maintain a professional relationship even while you argue your case.” Advocating your position and using the art of persuasion the right way when you disagree with a regulator is key, says Koscak. “Talk to them and see if they understand your position. They may not like it and you may not like theirs, but I’m always looking for common ground.” This approach can lead to greater understanding among the two parties as well as solutions that take into account how a certain decision may impact your business, says Sarah Qadeer, General Counsel with Home Depot of Canada Inc. in Toronto. “Regulators are coming at an issue—either crafting a regulation or enforcing a regulation—because it’s required to protect Canadians or business. So recognizing the legitimacy of the other stakeholder is important. And when you begin with that respect, it allows them to listen to you.” This approach goes both ways. For example, Schedler says that when she’s discussing a matter with in-house counsel, “I’m doing that in a very genuine and open manner. I have a perspective and you have a perspective—and there are probably big differences between them, so why don’t we talk about what they are and come to a middle ground? Sometimes, people feel the need to hold their cards close to their chest when dealing with their regulator, but I encourage any corporate counsel to be open. It’s going to serve them better in the end and create a much more fluid and comfortable relationship.” Although that may sound counterintuitive to some focused on protecting their firms, being evasive or guarded may have unintended consequences, Schedler says. “If someone’s trying to hide things, or not answering a regulator’s request, it raises suspicions.”

Whenever you communicate with a regulator, you need to be well prepared, regardless of whether that entails knowing certain processes and procedures at your organization or understanding what the regulator is trying to do from a legal perspective. “One of the techniques that we’ve developed to work with regulators more efficiently is to have our homework done ahead of time,” Chow says. “So we never get on a call or send an email without the full details. That means having every detail—even the ones you think you may not need.” For Geoffrey Creighton, Principal at GC Counsel Canada, and President and Chair of In-House Counsel Worldwide, one thing he’s learned in his many years of dealing with securities and financial services regulators is there’s nothing more important than knowing your stuff: “You should know the regulation, the governing statutes, and past practices and rulings of any adjudicator in that area. That helps make reasonable and helpful submissions and ensures you don’t go in asking for something that you should know is a non-starter.” Sometimes, however, being prepared means looking for help outside your organization to gain that greater understanding, Qadeer says. “It’s helpful to seek counsel in a very specific and regulated area in which you would not have the most technical expertise compared with someone who practices in that area all the time.”

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Make the regulator’s job easier Regulators take kindly to companies and in-house counsel that do their best to make regulators’ already difficult jobs a bit easier. That means having not only the necessary knowledge and attitude but also a well-defined internal structure at your organization for each specific regulator with which you deal. “For us, depending on the regulator, there’s one interface, and every communication goes through that interface,” Desjardins says. “There’s also a clear process as to what we’re going to say, having it approved by key stakeholders internally—such as the legal team, corporate counsel and executives—and then there’s one go-to person dealing with that regulator. This keeps the dialogue tight and uniform, and the regulator is not dealing with a multiplicity of voices within your organization.” It also means ensuring you make it easy for the regulator to get the information needed from you in an appropriate and timely manner so they’re not left waiting to get their job done.

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The challenge for most in-house counsel in dealing with regulators is doing so in a way that allows you to get along best with them while looking out for and protecting your organization’s best interests in the process.

”

“Sometimes when people get a letter from a regulator saying that we need to talk or that we need something from them, their initial reaction is not to respond for a period of time. But opening up those lines of communication immediately is the best practice that corporate counsel can use,” Schedler says. “When responding, take the regulator’s request very seriously and provide the information that’s been asked. Regulators expect to be heard and responded to relatively quickly.” To facilitate the job, when you’re in the middle of dealing with a matter with regulators, follow up with specifics and write a summary email, Chow advises. Instead of back-and-forth communication, succinctly summarize the tasks both parties are required to complete, what has been done and what’s being done. Also, avoid relying on templates. “[Templates] are easy to spot and give the impression you’re not taking the regulator’s request seriously,” adds Schedler. “Deal with each regulator as uniquely as you can.”

5 Educate regulators When communicating with regulators, in-house counsel can also take the opportunity to educate the regulator, in a respectful manner, about the realities businesses face and help them understand how a certain regulatory measure would impact your business.

“The biggest thing that regulators lack, generally, is industry knowledge—and definitely current industry knowledge,” Koscak says. “So package your experience as corporate counsel and share impacts, costs, benefits and burdens with regulators. They’ll never get that [otherwise] because they just don’t know. Sharing your experiences will resonate with them.” That approach has worked very well for Qadeer, who says regulators have been very receptive to her and her team’s effort to educate them about the business and how certain rules or laws have an adverse impact on the business that regulators didn’t anticipate. It has also helped regulators draft or enforce their regulations better. “I foster sharing of information so that each side can see where the other is coming from. My role in the company, as part of the executive committee, is very business focused, so I bring an understanding of business that’s very thoughtful and explain issues from an industry level,” she says. “The only way we can advocate and be authentic in describing how things impact our business is by being immersed in it and being able to speak to it. That’s a very effective tool for us.” ❚ Pablo Fuchs is a writer based in Toronto.

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es Restaurants Keg Ltée ont été pris dans une situation malheureuse et improbable récemment, lorsque le permis d’alcool de l’un de ses restaurants s’apprêtait à expirer à la suite d’une série de circonstances imprévues. Un document important a été envoyé sur les lieux plutôt qu’au régulateur des alcools approprié; le principal contact au sein de l’organisme de réglementation était en vacances; et après plusieurs tentatives pour communiquer avec l’un de ses collègues, il a été découvert que cette personne était elle aussi absente pour cause de maladie. Catherine Chow, vice-présidente des affaires juridiques et avocate générale, gère les enjeux juridiques relatifs à plus de 100 restaurants à travers l’Amérique du Nord. Elle sait que parmi les nombreuses relations complexes que son équipe et elle entretiennent, peu sont aussi délicates – ou peuvent avoir un impact aussi profond – que celles avec le régulateur qui supervise leur entreprise. Elle est donc pleinement consciente que de s’assurer que les conseillers juridiques internes ont des relations cordiales, ouvertes et basées sur la collaboration avec ces régulateurs peut avoir des effets grandement bénéfiques pour la compagnie. « Nous avons fait le suivi et avons trouvé un être humain à qui parler, ce qui est un défi, puisqu’ils gèrent plusieurs dossiers », raconte l’avocate. « Mais nous sommes une grande chaîne, alors les régulateurs des alcools et autres régulateurs nous connaissent. Nous faisons des affaires depuis 40 ans. [Cela] nous a aidé à résoudre les problèmes de communications qui sont survenus naturellement. » Une telle réalité pourrait devenir chose courante tandis que des conseillers juridiques internes à travers diverses industries accordent de plus en plus d’importance aux relations qu’ils entretiennent avec régulateurs. « Lorsque j’ai commencé dans ce poste il y a 11 ans, il était rare pour moi d’avoir une discussion avec un conseiller juridique. Habitu-

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pour entretenir de bonnes relations avec les régulateurs ellement, je discutais des enjeux avec un avocat du privé qui avait été embauché pour gérer le dossier », explique Heidi Schedler, avocate et haute responsable de l’application de la loi au sein de la Commission des valeurs mobilières de la Nouvelle-Écosse. Le défi pour la plupart des conseillers juridiques internes est de développer et d’entretenir ces relations, tout en veillant aux intérêts de leur organisation. Voici cinq moyens d’atteindre cet équilibre.

1 Comprenez et respectez le rôle du régulateur La plupart des entreprises font affaire avec plus d’un régulateur, donc de comprendre le rôle de chacun d’entre eux est crucial. Daniel Desjardins, vice-président principal, affaires juridiques et secrétaire de la société chez Bombardier Inc., en sait quelque chose: sa compagnie bâtit des trains et des avions pour le marché international, et son équipe doit travailler avec des régulateurs du domaine des transports dans 26 pays. De plus, Bombardier est une compagnie publique; elle doit donc coopérer avec diverses commissions des valeurs mobilières ou autres organismes, tels que les bureaux de la concurrence dans des dossiers de fusions et acquisitions. « Pour nous, considérer les régulateurs comme étant des partenaires de premier plan a toujours été bénéfique », dit l’avocat. Me Chow rappelle qu’il ne s’agit pas seulement de comprendre les divers organismes et le rôle qui leur est propre, mais aussi les employés avec lesquels vous faites affaire au sein de chaque régulateur. « Vous devez vraiment comprendre leur rôle, dit-elle. Si vous cherchez un processus d’approbation dans une commission des valeurs mobilières ou une application de routine, comprendre à qui vous avez affaire et comment cette personne s’inscrit dans le système réglementaire est primordial. »

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Le défi pour la plupart des conseillers juridiques internes est de développer et d'entretenir ces relations, tout en veillant aux intérêts de leur organisation.

2 Adoptez la bonne approche

Soyez bien préparés

Compte tenu du fait que dans certains cas, les régulateurs prendront des décisions avec lesquelles vous serez en désaccord, l’approche que vous adopterez à cet égard est cruciale. « Essayez d’éviter les confrontations. Gardez leur rôle en tête et soyez respectueux », recommande Greg Sainsbury, avocat général et secrétaire de la société au sein du groupe Horizons ETFs Management (Canada) Inc. à Toronto. « Si vous êtes en position de force, vous voudrez l’exprimer de manière respectueuse et maintenir des relations professionnelles même lorsque vous présentez vos arguments. » Présenter votre position en usant de l’art de la persuasion de la bonne manière lorsque vous êtes en désaccord avec un régulateur est essentiel, renchérit Brian Koscak, président et avocat général chez Pinnacle Wealth Brokers Inc. à Calgary. « Parlez avec eux et voyez s’ils comprennent votre position. Ils ne l’aimeront peutêtre pas et vous n’aimerez peut-être pas la leur, mais j’essaie toujours de trouver un terrain d’entente. » Me Schedler recommande quant à elle d’être ouvert et transparent dans leurs interactions avec les régulateurs. « Parfois, les gens sentent le besoin de cacher leur jeu […]. Mais [une plus grande ouverture] les servira beaucoup mieux en bout de piste et créera des relations beaucoup plus fluides et agréables. »

Lorsque vous communiquez avec un régulateur, vous devez être bien préparés. « Nous ne faisons jamais un appel ou n’envoyons jamais un courriel sans avoir tous les détails. Cela veut dire chaque détail – même ceux dont vous n’aurez peut-être pas besoin », dit Me Chow. Pour Geoffrey Creighton, dirigeant principal de GC Counsel Canada et président de In-House Counsel Worldwide, il n’y a rien de plus important que de bien maîtriser son dossier. « Vous devriez connaître la réglementation, les statuts de la compagnie, les pratiques passées et les décisions de tout régulateur dans le secteur. Ça aide à présenter des demandes raisonnables et garantir que vous ne réclamerez pas quelque chose qui – vous devriez le savoir – est hors de question. » À ce stade, il peut parfois être nécessaire de demander de l’aide à l’extérieur de votre organisation, estime Sarah Qadeer, avocate générale chez Home Depot Canada à Toronto. « Il peut être utile de demander conseil dans un secteur très spécifique et réglementé, dans lequel vous n’avez pas les compétences les plus techniques comparativement à quelqu’un qui pratique constamment dans ce domaine », dit-elle.

Rendez la vie plus facile au régulateur Les régulateurs apprécient les compagnies où des conseillers juridiques internes font de leur mieux pour faciliter leur travail. Cela signifie non seulement d’avoir les connaissances nécessaires et l’attitude

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{ article de fond } appropriée, mais aussi une structure au sein de votre organisation pour chaque régulateur avec lequel vous avez des interactions. « Pour nous, dépendant du régulateur, il y a un point de contact, et chaque communication se fait par l’entremise de ce point de contact », explique Me Desjardins. « Il y a aussi un processus clair quant à ce que nous allons dire, le faisant approuver par des acteurs clés à l’interne – tel que l’équipe juridique, l’avocat général et les dirigeants – et ensuite il y a une personne désignée pour interagir avec le régulateur. Cela garde le dialogue uniforme et bien encadré, et le régulateur n’a pas à interagir avec une série de personnes. » Me Schedler recommande aussi d’éviter les documents types. Ces modèles « sont faciles à détecter et ils donnent l’impression que vous ne prenez pas la demande au sérieux, dit-elle. Interagissez avec les régulateurs de manière aussi personnalisée que possible. »

Éduquez les régulateurs Lorsqu’ils communiquent avec des régulateurs, les conseillers juridiques internes peuvent aussi saisir l’opportunité pour l’éduquer, de manière respectueuse, sur les réalités auxquelles sont confrontées les entreprises, et les aider à comprendre l’impact que pourrait avoir une mesure en particulier.

Today’s Forecast: Partly Cloudy

« La chose la plus importante que les régulateurs n’ont pas, généralement, est une connaissance de l’industrie – et certainement une connaissance à jour de l’industrie », dit Me Koscak. « Alors, présentez votre expérience en tant que conseiller juridique interne et partagez avec les régulateurs les impacts, les coûts, les bénéfices et les fardeaux [qui pourraient être associées à certaines mesures]. Ils n’auront jamais [ces informations] autrement, parce qu’ils ne le savent tout simplement pas. » Cette approche a très bien fonctionné pour Me Qadeer, qui dit que les régulateurs ont été très réceptifs quant à ses efforts et à ceux de son équipe pour les renseigner sur l’entreprise et la manière dont certaines règles de droit pouvaient avoir un impact négatif que les régulateurs n’avaient pas anticipé. Cela a aussi permis aux régulateurs de miser sur des règles mieux ciblées. « Je privilégie le partage d’information pour que chaque partie puisse comprendre la perspective de l’autre. Mon rôle dans la compagnie, en tant que membre du comité de direction, est très axé sur les affaires, donc j’apporte à la table une compréhension des opérations qui est réfléchie, et j’explique les enjeux du point de vue de l’industrie », dit l’avocate. « La seule manière dont nous pouvons présenter nos arguments et être authentiques dans la manière dont nous décrivons l’impact d’une mesure sur notre entreprise est en étant pleinement impliqués et capables d’en parler. C’est un outil très utile pour nous. » ❚

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starts from within

By Julie Sobowale

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Learn The Culture

How do you bring up legal issues to IT developers? For Vivian Leung, it’s a matter of having some friendly conversations. “This morning there was a discussion about open source code with our developers, and I was saying we need to look into it and associate that with our contracts,” says Leung, who is General Counsel for BlueCat Networks. “Use of open source is a development issue but that information is important to know for the sales process when we’re negotiating customer contracts. The developers were really surprised that I was interested in this issue, not knowing that the issue is important for negotiating our customer contracts accurately.” A good relationship goes a long way. Nothing can be done in a business without fostering good relationships. In-house counsel need to focus not only on giving good legal advice but having strong bonds with leaders in the organization.

Relationship building begins on the first day of the job. Joe Frasca learned this as the first in-house lawyer for Shopify, the growing tech firm that creates e-commerce software. “We talk a lot at Shopify about the concept of the ‘trust battery,’” says Frasca. “When you are hired or first start working with someone, your trust battery is half-full. Subsequently, every time you work with someone at the company, the trust battery between the two of you is either charged or discharged, based on things like delivering what you promise, or whether you’re a help or a hindrance on the project.” Lawyers working in a fast-paced environment need to build trust quickly in order to be effective. Shopify is focused on rapid turnaround time for projects and not being bogged down with procedures—something Frasca has learned to embrace. “We value people who are creative, productive and can get shit done,” says Frasca. “We trust that our employees are able to identify what needs to be done, and make it happen quickly and efficiently with as little friction as possible.” Fitting into an organization is crucial. If you’re starting a new position in an organization, take time to learn about the culture. Be willing to come out of your comfort zone. While legal expertise is necessary, collaborating with others may require changing the way you work. “Lawyers at Shopify need to be comfortable being uncomfortable,” explains Frasca. “They need to be able to discard what they’ve learned over their careers about the right way to

approach a problem and tackle the problem in a different way. We need someone that not only fulfills legal requirements or mitigates risk but supports the growth of our business and helps our employees get shit done with as little friction as possible.” The first step in relationship building is to recognize corporate culture. Figure out what role lawyers usually play in the organization. Leung, who joined BlueCat two years ago, says that learning how the company works is vitally important. “Fostering relationships is one of the most important things, especially for smaller and mid-size companies,” she says. “The smaller organizations lack the structure and policies of larger organizations. In bigger organizations, there is a structure, a policy for everything; and at the end of every process, legal approval is required. It’s like checking a box. At smaller companies, sometimes there is no formal procedure for legal approval. You have to encourage people to come to you by giving advice that is practical and helpful, and demonstrating that you understand how the business is run. That way, people want to run things past you, whether or not there is a formal legal approval process.”

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Meet All The People Leung uses a different approach to get to know others. To get more familiar with the organization, she visits different departments periodically.

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“We’re like floaters,” says Leung. “When I’m in the room, I’m learning how the business is run and listening for new information. I get to hear what one group is doing and then I tie that information together with what I’ve heard from another part of the organization. I get to float through the different departments and bring people and ideas together. I can connect the dots or point out where the dots don’t connect. It’s the advantage of being an in-house lawyer.”

want to agree to the customer’s ADR process but I know my company will bend over backwards to help our customers so I can let that go.”

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Floating around has its advantages. Lawyers involved in various departments can pass along information quicker to senior executives, gain greater insight into how the organization works and learn more about the business overall. “Ask more questions, learn more about the business,” she says. “I’m floating back and forth between departments and from senior management down to individual employees. I’m at the management table with department heads but I also work closely with employees all across the organization. I like to piece together information from all levels of the company.” Leung has used her floater status to get involved in projects not directly involved with her work. Her tenacity has given her more opportunities to build relationships with others outside of senior management and contribute more to the organization. “Our IT department engaged an outside consultant for an IT security audit,” she explains. “He was interviewing the IT department about our infrastructure, and asking about vendors, our apps and other things. I heard about the project and asked to participate. Sometimes the meetings were long and focused on technical questions. They were talking about SFTP and routers and other things I don’t know about. But I got a clearer picture of how our IT infrastructure is set up and where the potential holes are. I have a better idea of how our business is run and I can identify risks in the company’s infrastructure. As a member of management, I can raise the issues to senior management in detail, whereas before, these sorts of issues were not getting the visibility they deserved.” By building relationships, in-house counsel will be able to adapt and give more help to the organization. Knowing how other departments work translates into making more informed decisions and knowing what issues have the greatest priority. “You need to learn how to allocate resources,” advises Leung. “For example, with customer contracts, some people take issue with the alternative dispute resolution clauses. In my experience, it’s extremely rare to end up in litigation with a customer. Typically, we would engage at the internal level with the client and try to resolve the issue. The worst-case scenario is we would give them their money back or we would do free work to rectify the problem. So I don’t need to focus so much on the ADR clauses in the customer contract. I don’t really

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Connect On Deeper Levels Like any good relationship, you need to maintain good lines of communication. This means more than talking about work. Marsha Lindsay knows this all too well. Her reputation for being friendly, personable, honest and trustworthy—on top of her excellent work—led her to an unexpected promotion to General Counsel at Purolator Inc. “I’m a Coronation Street fan and I found out that one of the Board members is a fan too,” says Lindsay. “So, every time, we start talking about that. People like to talk about what they do outside of work. It’s extremely important. You want to build that trust or people won’t be comfortable to talk to you. You want executives to come over and talk to you about anything.”

Lindsay, who came into the role of General Counsel three years ago, built her relationships through personal connections. She encourages lawyers in her department to interact with senior management by giving junior lawyers the opportunity to present their work at Board meetings. “One of the things we’re trying to do is for the lawyers here to know the executives,” says Lindsay. “When I was the labour and employment counsel, I didn’t try to get to know the executives I would eventually support. I never asked to be part of the executive meetings. I would just get work done. If a lawyer works on a contract or matter that involves the Board, I ask the lawyer to come to the meeting. I tell them I want them at the Board meeting so the Board can get to know them. A lot of lawyers think I’m the pipeline to talk to executives but that’s not true. They should interact as much as possible with the executives.” If you’re looking to strengthen your ties with other colleagues, try helping them out. Lindsay suggests not only asking to attend meetings but also offering to help senior executives. “There’s an opportunity to help them and I’m always willing to help,” says Lindsay. “I volunteer for things that will assist the executives when possible. I’m just willing to help out. The most important thing is to interact with others.” Once you have established solid relationships with others, maintaining it pays off for the people around you and for the business. As Frasca continues to develop Shopify’s legal department, his focus is on people. “Relationships aren’t built overnight,” he explains. “In any relationship, you have to put in effort to make it successful.” ❚ Julie Sobowale is a writer and journalist based in Halifax.

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THE BRIGHT IDEA: Why can’t we bring the same support to these companies that we do for their larger cousins? We already have excellent lawyers working for Canada’s largest companies on a dedicated basis as extensions of their in-house teams. Why not open them up to work in smaller bites as an in-house lawyer would for everyone else? The shared economy comes to law!

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commence avec les relations a l’interne

omment aborder des questions juridiques avec des développeurs informatiques? Il suffit d’avoir des conversations amicales. « Ce matin, il y avait une conversation au sujet d’un code source ouvert avec nos développeurs, et je disais que nous devons y jeter un coup d’œil et l’associer à nos contrats », raconte Vivian Leung, avocate générale de BlueCat Networks. « L’utilisation des codes ouverts est une question de développement, mais cette information est importante à connaître pour le processus de ventes lorsque nous négocions des contrats. Les développeurs étaient très surpris que je m’y intéresse, sans savoir que c’est important pour négocier nos contrats avec les consommateurs de manière plus précise. » Rien ne peut être fait dans une entreprise sans entretenir de bonnes relations. Les conseillers juridiques internes doivent concentrer leurs efforts non seulement à prodiguer de bons conseils, mais aussi à maintenir des liens forts avec les dirigeants de l’organisation.

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Apprenez la culture Bâtir des relations commence dès la première journée au travail. Joe Frasca l’a appris en étant le premier avocat interne chez Shopify, la firme techno en croissance qui domine l’industrie des logiciels de commerce en ligne. « Nous parlons beaucoup chez Shopify du concept de “batterie de confiance”. Lorsque vous êtes embauché ou que vous travaillez avec quelqu’un pour la première fois, votre batterie est à moitié pleine. Par la suite, chaque fois que vous travaillez avec quelqu’un au sein de la compagnie, la batterie de confiance entre vous deux est soit chargée ou déchargée, selon divers éléments tel que livrer les choses promises, ou si vous aidez ou nuisez au projet. »

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Les avocats doivent bâtir cette confiance rapidement afin d’être efficaces. Shopify est axée sur les résultats rapides pour les projets, et ne s’empêtre pas dans les procédures – une approche que Me Frasca a appris à apprécier. « Nous privilégions les gens qui sont créatifs, productifs et qui peuvent faire le travail, dit-il. Nous avons confiance en nos employés pour identifier ce qui doit être fait, et le faire de manière rapide et efficace avec aussi peu de pépins que possible. » S’adapter à une organisation est crucial. Si vous commencez dans une nouvelle position, prenez le temps d’apprendre au sujet de la culture de l’entreprise. Soyez prêts à sortir de votre zone de confort. Tandis que l’expertise juridique est nécessaire, travailler avec les autres peut nécessiter des changements dans votre manière de travailler. « Les avocats chez Shopify doivent être confortables dans l’inconfort », explique Me Frasca. « Ils doivent être capables de faire abstraction de ce qu’ils ont appris au cours de leur carrière quant à la bonne manière d’aborder un problème, et [être prêts] à l’aborder de manière différente. Nous avons besoin de quelqu’un qui non seulement répond aux exigences juridiques ou réduit les risques, mais qui aussi soutient la croissance de notre entreprise et aide nos employés à faire leur travail de manière aussi harmonieuse que possible. » La première étape dans le développement des relations est de savoir reconnaître la culture corporative. Trouvez quel est le rôle qu’y jouent généralement les avocats. Me Leung, qui s’est jointe à BlueCat il y a deux ans, note que « les plus petites organisations n’ont pas la structure et les politiques des plus grandes organisations. Dans celles-ci, il y a une structure et une politique pour tout; et en bout de piste, l’approbation juridique est requise. C’est comme une liste de choses à accomplir. Dans des compagnies plus petites, parfois il n’y a aucune procédure formelle pour l’approbation juridique ». « Vous devez encourager les gens à venir vous voir en donnant des conseils qui sont pratiques et utiles, et en démontrant que vous comprenez comment l’entreprise fonctionne, dit-elle. De cette manière, les gens veulent vous consulter, qu’il y ait un processus formel d’approbation juridique ou non. »

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Misez sur les gens

Me Leung utilise une approche différente pour apprendre à connaître les autres : pour être plus familière avec l’organisation, elle visite les différents départements de manière régulière. « Nous sommes un peu comme des intermédiaires », dit-elle. « Lorsque je suis dans une pièce, j’apprends la manière dont l’entreprise fonctionne et je suis à l’affût de nouvelles informations. J’apprends ce qu’un groupe fait, et j’attache ensuite ces renseignements à ce que j’ai appris dans une autre partie de l’organisation. Je peux flotter d’un département à un autre et ainsi unir des gens et des idées ensemble. Je peux faire des liens ou le signaler lorsque ces liens ne se font pas. C’est l’avantage d’être un conseiller juridique d’entreprise. » Martha Lindsay mise quant à elle sur une touche personnelle pour bâtir et entretenir des relations. « Je suis une admiratrice de Coronation Street et j’ai réalisé que l’un des membres du conseil d’administration l’est aussi », dit celle qui a récemment été nommée avocate générale de Purolator Inc. « Donc chaque fois, nous commençons à en parler. Ça aide. Vous voulez bâtir cette confiance, ou les gens ne seront pas confortables avec vous. Vous voulez que les dirigeants viennent vous voir et [se sentent à l’aise de vous parler] de tout et n’importe quoi. » Elle encourage aussi les plus jeunes membres de son département à développer tôt leurs propres relations dans les hautes

IN-HOUSE COUNSEL

sphères de l’entreprise en les invitant à présenter leur travail lors de réunions du conseil d’administration. Enfin, si vous essayez de renforcer vos relations avec d’autres collègues, essayez de les aider, recommande Me Lindsay. Elle suggère de non seulement demander d’assister aux réunions des hauts dirigeants, mais aussi de chercher à leur donner un coup de main lorsque nécessaire. « Il y a une opportunité de les aider et je suis toujours prête à aider, dit-elle. Je me porte volontaire pour des choses qui vont aider les dirigeants lorsque c’est possible. Je suis simplement disposée à aider. L’une des choses les plus importantes est d’interagir avec les autres. » Lorsque vous aurez établi des relations solides avec les autres, les maintenir est payant pour votre entourage et l’entreprise. Tandis que Me Frasca continue de développer le département juridique de Shopify, il met l’accent sur les gens. « Les relations ne se bâtissent pas en une journée, dit-il. Dans n’importe quelle relation, vous devez faire des efforts pour qu’elle soit fructueuse. » ❚

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The Corporate Secretary: An Increasingly Vital Role By Cathy Cummings

Are you strong, brave and diplomatic? These are the characteristics that best describe a good Corporate Secretary according to a panel of Chairs at the recent Governance Professionals of Canada (formerly Canadian Society of Corporate Secretaries) conference in the plenary session, "The Evolving Role of the Corporate Secretary.”

oderated by Carol Hansell of Hansell LLP, the panelists included TELUS Chairman Dick Auchinleck, Vancouver Airport Authority Chair Mary Jordan, and former Mountain Equipment Co-op (MEC) Chair Margie Parikh. In the past, the Corporate Secretary role was primarily administrative, ensuring minutes and record books were kept in compliance. However, the position has evolved significantly in recent years, becoming more strategic—for example, by ensuring the integrity of the governance framework, monitoring compliance with legislation and helping to protect from litigation—as companies have become increasingly concerned about their governance. In this changing landscape, what are Board Chairs now looking for from their Corporate Secretaries? According to Auchinleck, the most important responsibilities of the position are as follows: 1. 2. 3. 4. 5.

Act as a trusted advisor. Develop Board processes. Develop Board effectiveness. Manage information flow. Manage shareholder engagement.

So where do strength, bravery and diplomacy come in? Since you are a trusted partner and ally of both the Board and the management team, it is a nuanced role. In addition to being organized and good with

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information, you have to be good under pressure, intuitive and able to provide directions and warnings to management— be “willing to step in and say, ‘You should have done this,’ even if the conversation is a little uncomfortable,” says Parikh. Corporate Secretaries are responsible for the smooth functioning of a Board. They must have extensive understanding of the process and consequences to be able to layer on the “so what?” of compliance and governance when communicating with Board members. In fact, this may be their most valuable asset, says Auchinleck—they are there to explain in real terms why certain items are relevant to the Directors. Emerging issues covered by the panel for the Corporate Secretary role included the following: ■■ Virtual Annual General Meetings (AGMs): In this day of efficiency, accessibility, technological innovation and engagement, many organizations are looking to how best harness these trends to move to virtual AGMs. ■■ Separation of duties: Many General Counsel are also Corporate Secretaries. In many cases, when recruiting for this dual role, the emphasis is on satisfying the requirement of the General Counsel side. However, according to all the panelists, it is a missed opportunity. Boards should be

{ Spotlight on… }

more involved in recruitment, as the Corporate Secretary is an integral support to the Board, particularly to the Chair. Similarly, even where the Corporate Secretary is not the General Counsel, how does the former attain true independence? Often there is are solid-line reporting relationships between the CEO and the Corporate Secretary, and the Board Chair and the Corporate Secretary. However, as the Board Chair is not onsite day in and day out, the CEO generally works with the Corporate Secretary more. There must be a way to position the Chair to have a positive, constructive rela-

■■

tionship with the Corporate Secretary even with these barriers in mind. Balancing the needs of the Board and the management team: In the material for the Canadian Society of Association Executives’ governance roundtable, they phrase it well by saying, “It may be a thin one, but there is definitely a line that separates association governance from operations management. In the context of both good governance and director liability, it’s a line that needs to be respected.” The Corporate Secretary has to walk that line, and have the discretion and integrity to balance the two evenly.

When Hansell asked the panelists to leave the group with a final thought, they concluded, “The Chair of any Board needs to maximize the effectiveness of the Board. The Corporate Secretary can be a trusted partner in this.” No longer is the Corporate Secretary merely a minute-taker; the role has evolved considerably, encompassing responsibility for the entire governance landscape on an ongoing basis. Only those with the skills and diplomacy required need apply. ❚ Cathy Cummings is the Executive Director of the CCCA.

Does “Corporate Secretary” Need an Update? At the 2016 Annual General Meeting of the Canadian Society of Corporate Secretaries, there was an overwhelming vote in favour of changing the name of the association to Governance Professionals of Canada (GPC). Should the title “Corporate Secretary” follow suit and change to “Chief Governance Officer”? This question was raised—but not solved—at the conference in a number of different settings. Following the AGM, GPC President Lynn Beauregard was quoted as saying, “While our name may change, the corporate secretary remains the keystone member of this organization. GPC will

remain focused on offering quality information, education sessions and trusted dialogues with its network and among top experts, regulators and academics regarding key corporate governance issues and best practices.” According to Wikipedia, the source of all human knowledge, “despite the name [Corporate Secretary], the role is not a clerical or secretarial one in the usual sense.” If the competencies, skills and attributes necessary for this role relate to compliance and good governance, then perhaps it is time to refresh the positon title as well to something more meaningful.

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{ PLE INS FEUX SUR … }

Secrétaire corporatif : un rôle de plus en plus vital Par Cathy Cummings

tes-vous fort, courageux et diplomate? Ce sont ces qualités qui décrivent le mieux le bon secrétaire corporatif, d’après un panel de présidents dirigé par Carol Hansell du cabinet Hansell LLP, organisé dans le cadre de la conférence de l’organisme Governance Professionals of Canada (anciennement Canadian Society of Corporate Secretaries), sur le thème de « L’évolution du rôle du secrétaire corporatif ». Les panélistes étaient le président de TELUS, Dick Auchinleck, la présidente de l’Autorité aéroportuaire de Vancouver, Mary Jordan, et l’ancienne présidente de Mountain Equipment Co-op (MEC), Margie Parikh. Jadis, le secrétaire corporatif s’occupait surtout des tâches administratives, par exemple, la tenue des procès-verbaux. Mais ces dernières années, son rôle a beaucoup évolué pour devenir plus stratégique – assurer l’intégrité du cadre de gouvernance, surveiller la conformité aux lois et protéger contre les poursuites, par exemple – car les entreprises sont de plus en plus préoccupées par leur gouvernance. Face à cette mutation, qu’attendent les conseils de leur secrétaire corporatif? Selon Auchinleck, voici ses plus importantes responsabilités :

1. 2. 3. 4. 5.

Agir comme conseiller de confiance. Élaborer les processus du conseil. Améliorer l’efficacité du conseil. Gérer la circulation d’information. Gérer l’engagement des actionnaires.

crets aux administrateurs pourquoi certains points les concernent. Voici les questions émergentes sur lesquelles le panel s’est penché relativement au rôle du secrétaire corporatif : ■■ Assemblées générales annuelles (AGA) virtuelles : En cette époque d’efficience, d’accessibilité, d’innovation technologique et d’engagement, nombre d’organisations cherchent à exploiter au mieux ces tendances et à passer aux AGA virtuelles. ■■ Séparation des responsabilités : Plusieurs avocats généraux sont aussi secrétaires corporatifs. Souvent, ceux qui recrutent à ce double poste recherchent sur les qualités d’un bon avocat général. Mais d’après les panélistes, ce n’est pas la meilleure chose à faire. Le conseil devrait s’impliquer plus activement dans le recrutement, car le secrétaire corporatif est le soutien principal du conseil et, surtout, de son président. De même, si le secrétaire corporatif n’est pas l’avocat général, comment peut-il être véritablement indépendant? Le secrétaire corporatif a souvent un rapport hiérarchique direct avec le pdg et avec le président du conseil. Mais comme ce dernier n’est pas présent jour après jour, c’est avec le PDG qu’il travaille le plus. Il est essentiel que le président du conseil entretienne une relation positive et constructive

Pourquoi le secrétaire corporatif doit-il être fort, courageux et diplomate? En tant que partenaire de confiance et allié du conseil et de l’équipe de direction, son rôle est nuancé. Il faut savoir organiser et savoir reconnaître une information pertinente, mais aussi gérer la pression, être intuitif et être capable de donner des directives et de prévenir les administrateurs – « être capable de dire : ‘Vous auriez dû faire ceci.’ même si c’est difficile », résume Parikh. Le secrétaire corporatif est responsable du bon fonctionnement du conseil. Il doit comprendre les processus et les conséquences au point d’être capable de décrire les tâches de conformité et de gouvernance dans ses communications avec le conseil. En fait, il doit être le meilleur actif du conseil, selon Auchinleck – il est là pour expliquer en termes con-

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avec le secrétaire corporatif, en gardant cet obstacle à l’esprit. ■■ Trouver un équilibre entre les besoins du conseil et ceux de la direction : Dans la documentation de la table ronde sur la gouvernance de la Société canadienne des directeurs d’association, on peut lire que la ligne entre la gouvernance et la gestion opérationnelle a beau être mince, elle existe. Pour assurer une bonne gouvernance et la responsabilité des administrateurs, cette ligne se doit d’être respectée. Le secrétaire corporatif doit marcher en équilibre sur cette ligne, avec discrétion et intégrité. Lorsque Hansell a demandé aux panélistes de formuler une dernière réflexion, ils ont conclu comme suit : « Le président d’un conseil doit maximiser l’efficacité du conseil. Le secrétaire corporatif peut être un partenaire de confiance à cette fin. » Bref, le rôle du secrétaire corporatif va bien au-delà de la simple rédaction des procès-verbaux : il a considérablement évolué pour inclure l’entière responsabilité de la gouvernance sur une base constante. Les seuls qui font le poids à ce poste sont ceux qui ont les compétences et le sens de la diplomatie nécessaires. ❚ Cathy Cummings est directrice exécutive de l’ACCJE.

Faut-il mettre à niveau le titre « secrétaire corporatif »? À l'AGA de 2016 de la Société canadienne des secrétaires corporatifs, il y a eu un vote écrasant favorable au remplacement du nom de l’association par Professionnels de la gouvernance du Canada (PGC). Le titre « secrétaire corporatif » devrait-il être remplacé par « chef de la gouvernance »? Cette question a été soulevée – mais non résolue – dans différents contextes durant la conférence. Au terme de l’AGA, la présidente de PGC, Lynn Beauregard, a déclaré ce qui suit : « Même si le nom change, le secrétaire corporatif demeure la pierre angulaire de

l’organisation. PGC continuera d’offrir à son réseau ainsi qu’aux experts, aux législateurs et aux universitaires, de l’information, de la formation et des communications de qualité sur les questions de gouvernance et les meilleures pratiques. » D’après Wikipedia (du côté anglais), le rôle du secrétaire corporatif n’est pas clérical au sens habituel. Comme les compétences, les aptitudes et les qualités nécessaires à cette fonction sont en lien avec la conformité et la bonne gouvernance, il est peut-être temps de mettre ce titre à niveau pour qu’il traduise mieux la réalité.

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{ CCCA News }

Meet Stephen Rotstein

For the new CCCA Chair, no two days are ever alike—just how he likes it. As Vice-President, Policy & Regulatory Affairs and General Counsel with the Financial Planning Standards Council (FPSC), Stephen Rotstein must be prepared for anything: “I never know any day what legal fires I have to deal with or advice I have to give. Different issues come up each day, and some days they all come up. That variety is one of the things I like most about my job.”

n his General Counsel role, he is responsible for the legal health of the organization—handling corporate, commercial, governance, copyright and employment law matters while mitigating risk. In his VP of Policy & Regulatory Affairs role, he frequently interacts with regulators and the government on their oversight of financial services. He loves being an integral part of the FPSC’s senior management team, contributing directly to the organization’s success, and “dealing with issues that are important to the Canadian public, like financial planning and financial literacy.” Rotstein’s interest in public service started early in his career. After articling, he acted as a political advisor within the government, working for the Attorney General of Ontario, and later, Ontario’s Minister of Finance. This was his first glimpse into the world of law outside of private practice, and he liked what he saw—specifically the chance to dive into both the legal world and public policy. A few years after he left the government, Rotstein moved in-house at the Human Resources Professionals Association. While there, he led their intervention in the landmark employment law case Honda Canada Inc. v. Keays at the Supreme Court of Can-

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ada. “I was their General Counsel. It was my first role at a senior level as an in-house lawyer. I loved providing advice to a nonprofit organization, and I loved the variety of legal issues that non-profits have to deal with. But more than anything, I loved being a key part of an organization’s growth and success.” Rotstein’s focus on success is something he brings to the CCCA. Among his priorities as Chair is the success of all members. He plans to increase the value of the Association’s current member products and services, and target the unique needs of in-house counsel with new services. He also wishes to tap into the deep reservoir of member talent and expertise by encouraging more knowledge-sharing and networking, for example, through the CCCA Mentoring Program, volunteer opportunities with the Association (as event speakers, committee members and subject matter experts), and connections between the CCCA’s National Office and its local sections. Personally, Rotstein volunteered for many years on the Board of a community health care centre and as a counsellor at Camp Oochigeas (a camp for children with cancer). For him, it is not only about giving back to his community (though, he

{ CCCA News }

admits, that’s the biggest part of it), but also about getting to do things outside of his comfort zone, and learning about other industries and professions. Volunteering is one-third of Rotstein’s philosophy on maintaining work-life balance. The other two are family and physical activity. “My family and my kids—I have two daughters, ages 5 and 7—are my focus when I’m not working. I love watching them grow up,” he says. He’s also an avid runner and makes sure to get out for a run, even while travelling for business. “Taking care of your health is a cornerstone. If you don’t take care of your health through exercising, eating well and being with your family, then you can’t succeed at work. If you only focus on one thing, the others will suffer. It’s all part of a circle.” When asked about the future of the in-house profession, Rotstein believes it is bright. “I remember when I entered the legal profession, in-house counsel were just a small percentage of the community. There was not a lot of in-house recruitment, and only then in the bigger companies. But over the past 15-20 years, this trend has almost flipped on its head. When you look at job listings, almost half

the jobs seem to be for in-house counsel roles, and in every type of organization.” As for the larger legal community, Rotstein is happy the conversation is shifting to topics of cost certainty, predictability and manageable timelines for legal work. “As in-house counsel, we have to budget for every project, and we need to be able to work collaboratively with external counsel to achieve our client’s goals.” As he begins as CCCA Chair, it is clear Stephen Rotstein is up to the challenge.

One Smart Investment. Endless Possibilities. Grow your influence and earning potential. Register for the Business Leadership Program for In-House Counsel. Offered by the Rotman School of Management in conjunction with the CCCA, it is the only program of its kind in Canada. Why become certified? Today’s business environment calls for lawyers who are trusted legal advisors and strategic business partners with strong financial literacy skills. This program will give you the competitive edge you need to reach a leadership role within your organization. Upon completion, you will join an ex-

clusive group of Canadian lawyers with the designation of Certified In-House Counsel – Canada (CIC.C). The next cohort kicks off in Toronto on June 9, 2017: ■■ Course 1 – Understanding and Navigating Organizational Dynamics: June 9-11, 2017 ■■ Course 2 – Business Leadership Application: Self-paced (online learning) ■■ Course 3 – Developing as a Manager: November 17-19, 2017 ■■ Course 4 – The Effective General Counsel, from Manager to Leader: April 13-15, 2018 To apply, submit your completed application form available on the CCCA’s website or email certification@ccca-cba.org. Enrolment is limited, so early application is strongly encouraged.

Save the Date! 2017 CCCA National Conference The 2017 CCCA National Conference is coming to Toronto, April 2-4! This year’s theme is Agents of Change. Look to the future with accredited professional development, plenty of networking and valuable takeaways from fantastic keynote speakers! ❚

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{ Nouvelles de l’ACCJE }

Faites connaissance avec Stephen Rotstein Selon le nouveau président de l’ACCJE, il n’y a jamais deux jours pareils – et c’est bien ce qui lui plaît.

n tant que vice-président, Politiques et affaires réglementaires et avocat principal du Financial Planning Standards Council (FPSC), Stephen Rotstein doit constamment être prêt : « Je ne sais jamais quels problèmes surviendront ni quels conseils je devrai donner. Chaque jour apporte des problèmes différents, parfois plusieurs le même jour. Cette variété est l’un des aspects de mon travail que je préfère. » Comme avocat principal, il est responsable de la santé juridique de l’organisme et il s’occupe de droit corporatif, de droit commercial et de propriété intellectuelle tout en visant l’atténuation des risques. Comme VP, Politiques et affaires réglementaires, il interagit fréquemment avec les législateurs et le gouvernement dans le dossier de la surveillance des services financiers. Il adore faire partie de la haute direction du FPSC, car il peut ainsi contribuer directement au succès de l’organisme tout en s’occupant « de questions importantes pour le public canadien, comme la planification financière et la littératie financière. » Me Rotstein s’est intéressé au service public dès le début de sa carrière. Après son stage, il a été conseiller politique au gouvernement. Il a adoré cette première expérience du droit en dehors de la pratique privée – surtout que cela lui a permis de plonger à la fois dans le domaine juridique et la politique publique. Quelques années après quitté le gouvernement, il est devenu juriste d’entreprise à l’Association des professionnels en ressources humaines. « J’étais leur avocat principal. C’était mon premier rôle de haut niveau en tant que juriste d’entreprise. J’ai adoré être conseiller pour un organisme sans but lucratif, car l’éventail des questions juridiques possibles dans ce type d’organisme est large. Mais j’ai surtout adoré contribuer à la croissance et au succès de l’organisme. » Mettre l’accent sur le succès : c’est ce que Me Rotstein veut apporter à l’ACCJE. Pendant sa présidence, le succès des membres figurera parmi ses priorités. Il prévoit augmenter la valeur des produits et services aux membres de l’Association tout en répondant à certains besoins uniques des juristes d’entreprise. Il

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souhaite également exploiter les talents et l’expertise des membres pour encourager le partage des connaissances et le réseautage, en misant notamment sur le programme de mentorat de l’ACCJE, les possibilités de bénévolat au sein de l’Association (comme conférenciers, membres des comités et spécialistes en la matière) et les liens entre le bureau national de l’ACCJE et ses sections locales. Ayant été bénévole au conseil d’un centre de santé communautaire et à Camp Oochigeas (un camp pour les enfants atteints de cancer), Me Rotstein estime qu’il fait plus que redonner à la communauté (même si c’est le plus grand bénéfice) : il s’oblige ainsi à sortir de sa zone de confort et à se renseigner sur d’autres industries et professions. Me Rotstein a pour philosophie que le bénévolat est l’une des trois conditions pour préserver l’équilibre entre le travail et la vie privée. Les deux autres sont la famille et l’activité physique. « Ma famille et mes enfants, deux filles de 5 et 7 ans, ont droit à toute mon attention en dehors du travail. J’adore les regarder grandir », explique-t-il. Coureur invétéré, il s’assure de pratiquer son sport même durant ses déplacements d’affaires. « Prendre soin de sa santé est essentiel. Pour réussir au travail, il faut prendre soin de soi en faisant de l’exercice, en s’alimentant bien et en passant du temps avec sa famille. Si l’on se concentre sur un seul aspect, les autres aspects vont en pâtir. Tout est interrelié. » Quant à l’avenir de la profession, Me Rotstein le croit prometteur : « À mes débuts, les juristes d’entreprise n’étaient qu’un petit pourcentage du milieu juridique. Ils étaient rarement recrutés par des entreprises : seules les plus grandes choisissaient cette pratique. Mais depuis 15-20 ans, la tendance s’est renversée. La moitié des affichages recherchent des juristes d’entreprise, dans toutes sortes d’organisations. » Dans la communauté juridique en général, Me Rotstein est heureux que l’on parle davantage de certitude à l’égard des coûts, de prévisibilité et d’échéanciers gérables. « Comme juriste d’entreprise, nous devons budgéter chaque projet et être capables de collaborer

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avec les avocats externes pour atteindre les objectifs de nos clients. » Dès ses premières heures comme président de l’ACCJE, Stephen Rotstein est clairement prêt à relever le défi.

Un investissement intelligent. Des possibilités infinies. Améliorez votre influence et votre potentiel de revenu. Inscrivez-vous au Programme de leadership en entreprise pour les conseillers juridiques d’entreprise. Offert par la Rotman School of Management conjointement avec l’ACCJE, c’est le seul programme du genre au Canada. Ce programme vous donnera l’avantage concurrentiel dont vous avez besoin pour jouer un rôle de premier plan au sein de votre organisation : le titre de Juriste d’entreprise agréé – Canada (JEA.C). La prochaine cohorte entamera sa formation à Toronto le 9 juin 2017 (en anglais) : ■■ Cours 1 – Comprendre et s’orienter dans la dynamique organisationnelle – du 9 au 11 juin 2017 ■■ Cours 2 – Mettre en pratique le leadership dans son entreprise – formation autonome (en ligne) ■■ Cours 3 – Devenir gestionnaire – du 17 au 19 novembre 2017 ■■ Cours 4 – Le chef efficace : de gestionnaire à dirigeant – du 13 au 15 avril 2018 Pour vous inscrire, veuillez soumettre le formulaire de candidature disponible sur le site Web de l’ACCJE ou écrire à l’adresse certification@ccca-cba.org. Le nombre de places étant limité, il est fortement recommandé de s’inscrire d’avance.

Notez les dates! Conférence nationale 2017 de l’ACCJE La Conférence nationale de 2017 de l’ACCJE se tiendra à Toronto du 2 au 4 avril, sous le thème Agents de changement. Profitez des formations professionnelles accréditées, des nombreuses occasions de réseautage et des conférenciers formidables et inspirants! ❚

{ Legal Innovation }

Adding Value:

Tips for Effective Legal Counsel Relations By Junior Sirivar

The provision of superior legal services in today’s competitive market can only be achieved if the provider recognizes that perhaps the single most important element of their function is to add value. This, of course, applies with equal force to in-house and external counsel.

urrent economic realities have fundamentally changed the way lawyers do business with their clients, and how clients conduct their businesses. Companies are continuously reassessing their legal spend with a view to reducing it or, at the very least, rendering it more predictable. More than ever, they are looking to their in-house and external advisors for creative solutions to achieve that aim while maintaining the high level of legal services they require. It therefore falls to in-house and external counsel to find ways to provide superior legal services to the companies they mutually represent at a lower cost. This can only be achieved if the two have an effective and collaborative relationship. To that end, both in-house and external house would be well served by following these three tips:

1. Know your counterpart. External counsel must be able to anticipate the needs and expectations of the company and its in-house lawyers. This

can only be achieved if external counsel knows the client and its business, culture and inner workings. This requires a significant investment of time. Similarly, it is important for in-house counsel to be familiar with all members of the external counsel team, as well as their strengths and weaknesses.

2. Communicate and be responsive. Good communication is the key to building an effective and efficient relationship. It is essential for in-house counsel to provide properly scoped instructions that state commercial objectives, as well as any changes to such objectives over time. Conversely, external counsel should make their in-house counterpart aware of their teams’ capabilities and limitations, as this will shape expectations in a realistic way. It goes without saying that both counsel must be responsive. A simple email acknowledging a request and stating the time frame within which a substantive response will be given is often sufficient.

3. Collaborate in all aspects of the planning process. All aspects of the strategic planning process, for both the substantive legal services to be provided as well as any budgeting or project management initiatives, must be the result of a collaboration between inhouse and external counsel on a real-time basis. Unwelcome surprises on either side threaten the confidence and trust needed for an effective relationship. Creating and building this relationship will result in more streamlined work processes and more effective legal representation for the mutual client. ❚ Junior Sirivar is a partner in McCarthy Tétrault LLP’s Litigation Group in Toronto. Junior’s practice is focused on complex commercial cases, including mining disputes, class actions, securities and shareholder litigation, as well as both domestic and international commercial arbitration.

“

All aspects of the strategic planning process must be the result of a collaboration between in-house and external counsel on a real-time basis.

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”

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{ Strategic management }

Working with your Board of Directors The role of in-house counsel is evolving, bringing more leadership and ethical responsibilities with it. In his book released May 2016 by Ankerwycke, The Inside Counsel Revolution: Resolving the Partner-Guardian Tension, Benjamin W. Heineman, Jr. uses his nearly 20 years of experience as the top lawyer at GE to describe this modern role, motivated not just by the desire for income but by broader values of integrity and corporate citizenship. In this excerpt, he describes how best to perform the role of General Counsel to maintain a solid, productive working relationship with the Board of Directors:

irst, the General Counsel should have constant and direct relationship with the board as a whole, with board committees (except perhaps compensation), and with individual directors. The General Counsel should be part of the board culture and should attend all board meetings and all board committee meetings, often as secretary to keep minutes. But the General Counsel should also speak out independently, either to clarify a matter or, at times, to express a view on a decision. As part of the board culture, the General Counsel should develop relationships with individual directors and be available for one-on-one conversations to explain company activities when the director does not want to take CEO time. Second, the board of directors should have oversight of both the hiring—and any firing—of the top staff officers, including the General Counsel. Although the CEO should, of course, formally hire the GC who should be a senior, direct re-

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port, the CEO should seek the advice and consent of the board on a small slate or on the favored candidate before an offer is extended. This meaningful advisory role in the hiring process stems, of course, from the basic principle that the General Counsel’s client is the corporation as embodied by the board of directors. Similarly, the board of directors must clearly require that the CEO consult with the board before a General Counsel is fired or otherwise separated. This not only imposes a slight procedural delay so such an action is not taken in a fit of pique, but it also gives the board the opportunity to understand the circumstances and to ensure that the General Counsel is not being fired for attempting to be guardian or for generally speaking up on legitimate issues. Third, the General Counsel should report regularly to the board of directors or to one of the committees on key issues relating to performance with integrity and sound risk management. Subjects

{ Strategic management }

could include trends in the number of formal governmental enforcement actions (subpoenas/cases brought); detailed discussions of the most salient of those enforcement actions; trends, key issues, and results relating to matters reported into the company ombuds system; general litigation profile and trends; regular discussions of the cases with greatest risk (financial, reputational, precedential); the main take-aways or lessons learned from the annual business-by-business compliance reviews (in conjunction with the CFO and chief compliance officer); the results of compliance reviews by the external and internal auditors; and issues on the horizon that have emerged from the corporation’s early warning systems. Fourth, the General Counsel should meet alone with the board as a whole or with the Audit or Risk Committee at least two times per year to discuss any issues of concern to the GC or to answer any questions from the directors. Making this private meeting a board initiative avoids—or at least mitigates—erosion of the critical trust that must exist between the CEO and the GC. Ad hoc meetings, especially if requested by the General Counsel, would be out of the ordinary and could be seen by the CEO as a potentially disabling act of disloyalty (although such meeting must be requested in extreme circumstances). The subjects of these regular, private meetings can include more detailed, “bark off ” evaluations of the matters subject to peri-

odic reporting to the board or entail communication of sensitive information that has been reported up through the legal channel.[....] And lastly, the General Counsel must have the courage and judgment to recommend board retention of independent outside counsel when there are credible allegations of impropriety about the CEO or other very high-level executives who are peers of the GC. Even when the General Counsel has a strong reputation for probity, the appearance of a conflict of interest in having the Legal Department investigate the CEO or senior executives demands that the General Counsel advise the board on finding its own coun-

sel to handle the inquiry. Unless the GC is personally implicated, board selection of independent outside counsel does not totally disqualify the General Counsel or the Legal Department. The GC and senior lawyers clearly can help the outside firm locate documentary and testimonial evidence. In light of the GC’s knowledge of the corporation, he can review the findings of outside counsel to comment—but not edit—on issues that may have been missed or misinterpreted. He may give his advice on the ultimate disposition if asked by the board. But, he absolutely may not impede or interfere in any way with the process or substance of the independent inquiry by the board’s outside counsel. ❚

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{ HR Impact }

Building Community in the Workplace By Gerlinde Herrmann

Most employees spend half or more of their waking hours at work during the week. As a result, their co-workers are often one of their main sources of social interaction. It’s not uncommon to find that employees form strong connections when working together over time.

hese bonds and social interactions can be developed further through a strong sense of community and unity in the workplace. It has been demonstrated that when an organization is functioning effectively as a community, employees are more likely to take pride in their work and want to contribute as much as possible to the goals and objectives of the entire group. Communication is key in developing a community and organizational culture in the workplace. Communities and teams often strive to develop a culture or a set of shared attitudes, values, goals and practices that characterize their culture and define how they will work together. This sense of community and fellowship should start from the leadership team and trickle down into all parts of the organization. To be effective, key organizational

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goals should be clear to everyone in the organization regardless of their role. One way to begin to foster the team and community spirit is through Town Hall meetings. These meetings act as a tool to share organizational objectives, achievements and challenges while creating a sense of openness and inclusivity in the organization. While having global or remote employees has created challenges in the past, video conferencing technology now allows all employees to participate at the same time, ensuring everyone in the organization feels included and up to speed in real time. Managers then play a vital role in ensuring that everyone on their team understands the overarching goal, how the team fits into that goal and the important role of each individual member on the team.

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Regular team meetings provide opportunities to discuss progress, obstacles and potential solutions. During these meetings, processes can be evaluated and tweaked for optimal efficiency. Team meetings should provide a non-threatening environment where every idea is considered. This will allow all team members an opportunity to confidently put forward their thoughts, ideas and solutions for consideration. When people feel that they are being heard and their ideas are being considered, they are more likely to work harder towards achieving the goals of their team and ultimately the organization. Processes can be established to recognize contributions and successes of individual employees or teams and could include recognition from their peers or leaders. This promotes a sense of community and positivity and sets those individuals or teams up as role models within the organization. Providing other opportunities for the team to get together in a less formal setting allows them to get to know each other on a different level. Hold a potluck lunch, go out as a group to an afternoon or evening event, or organize sports teams from the various departments to promote camaraderie within teams. Individual employees can take turns choosing and organizing the events, which provides them an opportunity to take on a leadership role. Ultimately, an organization with a strong sense of community and culture keeps employees happier in their jobs for longer and fosters loyalty and productivity within the organization. ❚ Gerlinde Herrmann, SHRM-SCP, GPHR, CHRL, CHRP, is Past Chair of the Human Resources Professionals Association (HRPA)—Canada’s largest HR association and the regulator of the HR profession in Ontario. www.hrpa.ca

{ Inside Edge }

Practicing Law in a DIY Culture By Michelle Moldofsky

In the not-for-profit sector, every dollar counts. So many organizations reach out to one another and various support agencies to gather the information needed to take a do-it-yourself (DIY) approach to several legal services. They are looking for ways to reduce the need to seek legal advice. These are my clients.

hey may draft policies, review contracts, negotiate deals and resolve disputes without a lawyer. And that’s okay. What’s not okay is when they do so without any appreciation of the risks involved. That’s where I can help.

Filling a Gap After working for more than 15 years inhouse, I decided to start a consulting business to provide in-house counsel services for organizations, primarily in the healthcare sector, that cannot afford or justify full-time legal staff. I want clients to have the same level of legal expertise as profitable companies. My approach is to build internal capacity to minimize reliance on external counsel while still meeting day-to-day challenges with a sophisticated management of risk. For example, I offer a legal health check—a quick assessment of an organization’s legal needs and how they are sourced to determine whether there is room to increase value and reduce risk. I work with clients to identify the level of support needed, the right professionals for the work and their appetite for risk. I help them streamline their internal legal practices to be as efficient and effective as possible. I communicate options and risk factors clearly, and focus on unbundled services—client and lawyer each performing various components of

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the work—where possible and as long as the staff are trained to correctly identify appropriate situations. I also strive for predictable pricing. Where I can charge flat rates, I do. Where I can work virtually and avoid added travel costs, I do. Clients shouldn’t have to guess what legal services will cost. I’ve been the client and feel that surprises are too frequently part of the billing process.

Maintaining Good Relations I maintain a strong professional network. I chose the sole practitioner model to increase flexibility with whom I work, bringing in the right people for the client’s job rather than having a set stable of practitioners that I need to choose from every time. Like all in-house counsel, my business is based on solid relationships with clients, especially as I work remotely. I focus on building trust as I work with them. Instead of less contact, the result is often

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more frequent but shorter contact on key aspects of a matter. When I was in-house, I relied on informal chats with colleagues in the various business units to stay in the loop. Now, to enhance relationships through more natural interactions, I volunteer widely and make sure to attend events clients may be attending. Relationships are forged in a variety of interactions, not just calls to resolve problems. At client conferences, I get to learn the new challenges clients are facing and possible solutions. This is also a great way to network with fellow in-house counsel. I believe organizations can increase the value they get from their legal spending by reducing the overall need for expensive items like litigation. Organizations can also better manage and reduce hidden administrative costs by building strong internal processes. Counsel need to help clients build internal capacity, with a view to empowering clients to use a DIY solution where it is possible and cost effective to do so. ❚ Michelle Moldofsky founded Moldofsky Professional Corporation in December 2015. She provides a wide range of legal services focusing on the not-forprofit and healthcare communities across Ontario.

I focus on building trust as I work with [clients]. Instead of less contact, the result is often more frequent but shorter contact on key aspects of a matter.

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