acc australia trends survey 2014 · 2020. 9. 3. · abn 97 003 186 767 phone 1300 558 550 email...

ACC AUSTRALIA TRENDS SURVEY 2014

Current trends for the in-house market

ABN 97 003 186 767

PHONE 1300 558 550 EMAIL [email protected] WEB acc.acla.com

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TABLE OF CONTENTS03 INTRODUCTION

04 AN OVERVIEW OF RESPONDENTS

07 KEY FINDINGS

08 THE ASIAN CENTURY

11 SIX CORE QUESTIONS 12 IN-HOUSE GROWTH

13 NEWLAW FIRMS

16 DIRECT BRIEFING

18 FORENSIC ASSISTANCE

20 WORK LIFE BALANCE 23 CONCLUSION

24 ABOUT ACLA 25 WITH THANKS TO

ABN 97 003 186 767


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INTRODUCTIONWith the continual changes in the legal landscape over the past few years, the in-house profession has seen the rise and fall of many marketplace trends.

For the first time in August 2012 ACLA issued the Trends survey to over 3000 in-house counsel representing a range of commercial organisations and government departments. The data was made available to ACLA full members and the survey is now conducted annually.

Two years have passed since the inaugural Trends survey and during this time we have seen the evolution of the economical and political landscape through the Global Financial Crisis (GFC) and the Asian Century, and the career opportunities this brings.

We have seen progress in the in-house function with new practice management trends and professional development opportunities. The trend continues in 2014, with the introduction of NewLaw business models and the increasing focus on ethics and work-life balance impacting the in-house profession. ACLA worked with our Corporate Alliance Partners to create the 2014 survey which investigated new key areas of interest such as:

• NewLaw business models• The in-house team• Work-life balance

Hot topics covered in 2013 such as opportunities in the Asian Century, practice of direct briefing and the importance of forensic assistance were also investigated this year.

This year the Trends survey was issued to over 4000 in-house counsel. 322 responses were received. This report is intended for ACLA members to better understand the current in-house environment.

ABN 97 003 186 767


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322 in-house counsel from Australia completed the 2014 survey representing a range of industry sectors nationally. 40% of respondents are the head of their legal team. 1/3 of respondents have been working in-house for 5 to 9 years.

AN OVERVIEW OF RESPONDENTS

40%

33%

23%

5%

Respondents role within the legal function

General counsel / equivalent Senior legal counsel Legal counsel Other

1%

26%

33%

22%

9%

8%

Number of years that respondents have you been working in-house in a corporate or government organisation

20

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The 322 in-house counsel who completed the 2014 survey represent a range of industry sectors as below.


0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

Other services

Wholesale Trade

Transport, Postal & Warehousing

Retail Trade

Rental, Hiring & Real Estate Services

Public Administration & Safety

Professional, Scientific & Technical Services

Mining

Manufacturing

Information, Media & Telecommunications

Healthcare & Social Assistance

Finance & Insurance Services

Electricity, Gas, Water & Waste Services

Education & Training

Construction

Arts & Recreation Services

Agriculture, Forestry and Fishing

Administrative & Support Services

Accommodation and Food Services

Industry Sectors

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The majority of respondents are employed in public listed and privately owned organisations.


32%

30%

11%

10%

7%

3% 8%

Organisation type

Privately owned Public listed

Public unlisted Government department or organisation

Government-owned enterprise University / academic institute

Other

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KEY FINDINGSAUSTRALIAN IN-HOUSE ENGAGED WITH SINGAPORE, CHINA AND INDIA The businesses that respondents work for are highly engaged in the Asian region. Almost 20% of these organisations have legal teams in Singapore. Many also have legal teams in Mainland China (16%) and India (13%).

THE EMERGENCE OF NEWLAW IN AUSTRALIA

Less than 20% of respondents indicated that their legal department had engaged NewLaw firms. Respondents indicated that the principal barriers for engaging with NewLaw firms were:

• Don’t understand what they offer (44%)• Lack of time to build relationships (25%)• Set up costs/time (26%)

GFC LITTLE AFFECT ON ORGANISATIONS LEGAL DECISION MAKING Since the commencement of the GFC, 73% of organisations have not made a conscious decision to delay pursuing disputes or enforcing rights until market conditions improve. INCREASE IN INVESTING IN THE IN-HOUSE LEGAL FUNCTION 42% of respondents are investing more in their in-house legal function than they were 12 months ago. IN-HOUSE LEGAL TEAM SIZE PREDICTED TO REMAIN THE SAME The majority of respondents predict their in-house legal team will remain the same (68%), or expand in size (23%), in the next 12 months. Only 9% of respondents predict a decline in size. WORK LIFE BALANCE 67% of respondents work more than 41 hours per week, and 9% work over 60 hours per week. Half of all respondents rated Work Life Balance as important to them in the workplace, and 49% of respondents organisations have a formal Work Life Balance Policy. 65% of respondents have access to work from home, and rate this the most valuable offering from their employer. This is followed by exercise facilities and health programs.

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THE ASIAN CENTURYToday

3%

8%

31%

6%

35%

8%

25%

47%

24%21%

40%

33%

14%

5%

35%

26%

17%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

% of respondents that currently do business in any of these countries or with organisations from any of these countries

2%1%

9%

1%

12%

1%

8%

19%

8% 8%

16%

12%

3%

0%

13%

9%

6%

0%

5%

10%

15%

20%

25%

% of respondents that currently have legal operations or a legal team in the following countries

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THE ASIAN CENTURY The next 5 years

3%

8%

28%

7%

29%

10%

21%

38%

21% 21%

37%

29%

13%

5%

28%

22%

16%

0%

5%

10%

15%

20%

25%

30%

35%

40%

% of respondents that plan on doing business in or with organisations from the following countries over the next 5 years:

0%

2%

4%

1%

7%

1%

6%

11%

4%

4%

9%

7%

2%

1%

7%

6%

4%

0%

2%

4%

6%

8%

10%

12%

% of respondents who plan to have legal operations or a legal team in the following countries, in the next 5 years

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THE ASIAN CENTURY Industry Sectors

10%

7%

5%

8%

3%

4%

12%

9%

17%

19%

6%

15%

8%

7%

8%

4%

6%

3%

4%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

Other services

Wholesale Trade

Transport, Postal & Warehousing

Retail Trade

Rental, Hiring & Real Estate Services

Public Administration & Safety

Professional, Scientific & Technical Services

Mining

Manufacturing

Information, Media & Telecommunications

Healthcare & Social Assistance

Finance & Insurance Services

Electricity, Gas, Water & Waste Services

Education & Training

Construction

Arts & Recreation Services

Agriculture, Forestry and Fishing

Administrative & Support Services

Accommodation and Food Services

Respondents are primarily focusing on business opportunities in the following industries within the Asian region:

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SIX CORE QUESTIONS Investigating the marketplace and industry conditionsWe asked respondents to state the extent to which they agreed with the following statements:

My organisation is investing more in its in-house legal function than it was 12 months ago 42.2% agree7.5% neither agree nor disagree50.2% disagree

My organisation seeks international talent for recruitment of the in-house legal function 15.3% agree5.0% neither agree nor disagree79.7% disagree I see an increase in M&A activity in my industry over the next 12 months 39.1% agree17.8% neither agree nor disagree43.1% disagree

Since the commencement of the GFC my organisation has made a conscious decision to delay pursuing disputes/enforcing rights until market conditions improve

10.0% agree16.7% neither agree nor disagree73.3% disagree

My organisation’s position has changed since the 2013 Federal election


I expect my organisation’s position to change over the next 12 months


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IN-HOUSE GROWTH

23%

68%

9%

In the next 12 months respondents predict their in-house legal team will:

Expand in size Remain the same Decrease in size

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NEWLAWWe asked respondents about their knowledge and use of NewLaw business models.

Less than 20% of respondents indicated that their businesses had engaged with NewLaw firms.

82%

15%

3%

% of respondents who have used NewLaw business models in the past

No Yes: 1-5 times Yes: 5+ times

59%

31% 33%

44%

32%

0%

10%

20%

30%

40%

50%

60%

70%

Legal process outsourcing Virtual law firms In-sourcing Legal project management I am not aware of any

% of respondents who aware of the following NewLaw business models

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NEWLAW

Respondents indicated that the principal barriers to engagement of NewLaw firms were:

• Don’t understand what they offer (44%)• Lack of time to build relationships (25%)• Set up costs/time (26%)

44%

13%

26%

22%19%

26%

10%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Don't understandwhat they offer

Not comfortable withthe model

Lack of time to buildrelationships with

them

Quality concerns Confidentiality andsecurity concerns

Set up costs / time Jurisdictional issues

Barriers to using NewLaw firms

ABN 97 003 186 767


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NEWLAW

Respondents indicated that the top two benefits of using NewLaw firms are:

• Better value (49%)• Lower cost base (46%)

13%

49%

22%

28%

46%

28%

17%

9%

23%

36%

36%

10%

0% 10% 20% 30% 40% 50% 60%

Better service

Better value

More effective use of technology

More agile workforce

Lower cost base

More flexibility in how they resource our matters

More choice and influence for us in resource mix for our matters

Better diversity

Don't pay for training juniors

Only pay for what we need

Different fee models

Mode modern approach

% of respondents who think the benefits of using NewLaw firms are:

ABN 97 003 186 767


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DIRECT BRIEFING• 43.7% of respondents, or their organisations, have directly briefed a barrister in the past 12 months.• 75.8% of those who do use direct briefing do so due to specialist expertise received.• 58.2% of respondents directly brief barristers on Major Litigation matters.• 83.5% of respondents take into account a barristers recognised expertise in a particular area.• 42.1% of respondents intend to directly brief a barrister in the next 12 months. This data is on-par with the results from the 2012 and 2013 Trends survey. There appears to have been little movement on who is direct briefing and the reasons for doing so.

39%

58%

58%

22%

48%

20%

0% 10% 20% 30% 40% 50% 60% 70%

Minor Litigation (Tribunals, Lower Courts, Less than $50K in dispute)

Major Litigation (Supreme Court, Federal Court)

Specialist advice (eg taxation, intellectual property, human resources etc)

Specialist expertise in my particular industry (eg gaming, mining, labelling law etc)

Specialist issues that my organisation is facing

Governance and regulatory matters

Respondents reasons for directly briefing a barrister

ABN 97 003 186 767


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DIRECT BRIEFING

3%

43%

54%

84%

8%

26%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Guidance/recommendations from an experienced Barristers Clerk

Personal relationships

Recommendation from an in-house colleague or private practitioner

Recognised expertise in a particular area

A Barrister with previous in-house experience

Stature (ie SQ / profile name)

When selecting a barrister respondents take into account:

ABN 97 003 186 767


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FORENSIC ASSISTANCEIn rating the importance of the following issues and assessing how prepared the respondents felt their organisation is to deal with the following matters - the importance matched the level of preparation in most cases as shown.

4.37

3.92

4.00

3.55

3.45

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00

Regulatory compliance

Protecting intellectual property

Managing major suppliercontracts

Bribery and corruption inAustralia and overseas

Continuous disclosure offinancial information

How prepared the respondent's organisation is to deal with the following issues:(1 = Not prepared at all - 5 = Very prepared)

4.67

4.12

4.28

3.70

3.31

0.00 1.00 2.00 3.00 4.00 5.00




Bribery and corruption inAustralia and overseas

Continuous disclosure of financialinformation

How important the following issues are for respondent's organisation(1 = Not important at all - 5 = Extremely important)

ABN 97 003 186 767


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FORENSIC ASSISTANCE

4.49

3.85

4.07

3.26

2.74

0.00 1.00 2.00 3.00 4.00 5.00




Bribery and corruption in Australiaand overseas

Continuous disclosure of financialinformation

How the following issues affect respondents current role (1 = No impact - 5 = Key concern):

ABN 97 003 186 767


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WORK LIFE BALANCE

49%

38%

13%

% of respondents organisations that have a formal work-life balance policy

Yes No Don't know

23%

40%

28%

9%

Number of hours per week respondents typically work

21 - 40 41 - 50 51 - 60 More than 60

ABN 97 003 186 767


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WORK LIFE BALANCE

50.4%

37.8%

3.7%

6.7%

1.5%

The importance of Work Life Balance policy to respondents

Very important Important Don't know Unimportant Very unimportant

ABN 97 003 186 767


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WORK LIFE BALANCE

7% 8%

65%

77%

45%

26%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Employer assistancewith childcare

Job sharingopportunities

Telecommuting(work from home)

Counselling services Health programs Exercise facilities

% of respondents who have access to any of the following:

2.43

2.45

4.18

2.84

3.41

3.41

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50

Employer assistance with childcare

Job sharing opportunities

Telecommuting (i.e. work from home)

Counselling services

Health programs

Exercise facilities

The importantance of offerings to respondents (1 = Not important at all - 5 = Extremely important)

ABN 97 003 186 767


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CONCLUSIONOrganisations are currently highly engaged within the Asian region, especially within Singapore, Mainland China and India. The top three industries within Asia that respondents are primarily focusing on are: Information, Media & Telecommunications, Manufacturing and Finance & Insurance Services. As well as opportunity in Asia, there is room to move locally as the majority of respondents predict their in-house legal team will remain the same or expand in size in the next 12 months. The future for in-house looks stable with respondents investing more in their in-house legal function than they were 12 months ago. The GFC has also had little affect on organisations legal decision making, with the majority of respondents not delaying pursuing disputes or enforcing rights until market conditions improve. The delivery of legal services in Australia has potential to be revolutionised due to the recent emergence of the NewLaw firms. However, having regard to the number of established NewLaw practices in Australia, the number of respondents that had engaged NewLaw firms is surprisingly low. The lack of understanding about what NewLaw firms offer as the principal barrier to engagement for in-house lawyers indicates an urgency for improved education for in-house counsel and their employers on the NewLaw concept. Another key concept explored in the survey was Work Life Balance. In general, respondents work long hours and rate having a formal Work Life Balance policy as being important to them. However, less than half of the organisations surveyed have a policy. Offerings such as access to work from home, exercise facilities and health programs are of high importance to respondents.

As we have seen from this report, the legal landscape is constantly changing with new trends arising that affect the role of in-house counsel. This report is a small snapshot of the current state of the in-house industry and we will continue to investigate trends annually. General counsel are now, more than ever, under extreme pressure to reduce legal spend, demonstrate value and drive better performance from their external providers. ACLA will continue to support the needs of busy in-house professionals by providing opportunities for knowledge sharing, educational programs, resources and advocating on matters of interest to the profession.

ABN 97 003 186 767


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ABOUT ACLAThe Australian Corporate Lawyers Association (ACLA) is the peak national association representing the interests of nearly 14,000 in-house lawyers (around 30% of the legal profession) working for businesses and governments in Australia.

ACLA’s role as the ‘voice of in-house lawyers’ is a vital one for the furthering and advancement of the profession.

With over 4,000 members ACLA offers in-house lawyers education opportunities, the forum to connect with peers and the tools and resources ro assist them in their role. With these offerings, ACLA caters for all in-house lawyers including those new to in-house through to General Counsel working in ASX 200 companies and government departments.

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WITH THANKS TO

acc australia trends survey 2014 · 2020. 9. 3. · abn 97 003 186 767 phone 1300 558 550 email...

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