From proactive to preactive: redefining legal in-house counsel's role

In-house legal counsel has long taken a proactive role, anticipating and addressing legal risks before they materialize. However, this approach doesn’t fully capture the potential of in-house teams. The ideal approach is “preactive,” a concept that emerged from discussions at the General Counsel Leadership Summit in Toronto, organized by the GC Collective. Alongside David Lancelot, Ilan Mints, Rustam Juma, and Will Ramjass, we recognized that in-house counsel is most valuable when engaged in strategic discussions from the start, even before legal issues arise.

The shift from proactive to preactive lies in the depth of engagement. While proactive counsel acts before risks escalate, often after legal concerns are detected, preactive counsel joins early-stage discussions. This means shaping strategic decisions by aligning business goals with legal standards while identifying risks at the outset.

Defining preactive: a strategic shift

To grasp preactivity, we must distinguish it from traditional proactive counsel. Proactive counsel anticipates risks and ensures compliance but often begins only after a potential issue emerges. Preactive counsel, by contrast, becomes part of foundational conversations, allowing continuous insights to influence strategies before they crystallize into challenges.

This approach addresses risk and supports objectives by combining legal, regulatory, and strategic foresight. When in-house counsel participates from a project’s inception – whether a product launch, partnership, or new initiative – they bring insights otherwise applied only after the strategy is set. The result is a framework of integrated legal and business considerations that enhances company resilience.

The cost-effective advantage of in-house counsel

One of the most substantial advantages of in-house counsel is freedom from hourly billing, unlike external counsel. This model allows counsel to attend meetings and provide input without cost-based hesitation. External counsel engaged for specific projects can add significant costs, discouraging frequent guidance. In contrast, in-house counsel’s unrestricted participation helps prevent issues and avoid costly adjustments.

In-house counsel’s organizational familiarity allows them to offer legally sound and commercially aligned advice. This continuous involvement cultivates a culture in which legal and business perspectives are fully integrated. Over time, this builds a foundation of legal foresight that supports strategic decision-making.

From legal resource to strategic partner

The core of preactivity is elevating in-house counsel from a supporting role to a strategic partnership. Rather than involving counsel merely to review agreements or mitigate identified risks, preactive counsel participates in the design and execution of projects, new products, and partnerships.

For example, in a product launch, bringing in-house counsel into discussions at the concept stage prevents regulatory hurdles and allows for faster market entry. Compliance, IP concerns, and regulatory issues are addressed early, minimizing delays or legal complications. This proactive engagement results in a smoother path forward with a well-grounded, legally sound strategy.

The acceleration advantage of a preactive approach

David Lancelot highlights a critical aspect of acceleration within the preactive model. Rather than waiting until the onsite project planning phase, engaging counsel at the strategic offsite level allows businesses to receive foundational legal input embedded with comprehensive business insights. This setup enables initiatives to advance fully, making minor course corrections early rather than facing significant redirections when unexpected challenges appear.

This preactive involvement functions like extended radar range, where counsel can foresee potential issues well in advance, allowing for an optimal, even accelerated, pathway forward. As a result, the business can move swiftly and confidently, maintaining momentum without setbacks common in traditional models where counsel’s delayed involvement often necessitates costly adjustments.

The long-term benefits of preactive in-house counsel

• Enhanced risk mitigation: In-house counsel can help design risk-mitigation strategies at the onset, reducing potential setbacks.
• Strategic alignment: Counsel’s continuous involvement ensures business and legal goals are fully aligned.
• Cost efficiency: Without hourly billing, companies access regular legal input without financial burdens typical of external counsel.
• Agility: Embedded counsel offers actionable insights that can quickly adapt to shifts in market or regulatory landscapes.
• Integrated compliance: Legal considerations are integrated from the beginning, streamlining compliance and reducing associated costs.

Building a preactive culture

Building a preactive culture requires committing to include legal counsel in early strategic conversations, even if they don’t appear to involve direct legal issues. Leadership can support this by positioning in-house counsel as strategic assets contributing to long-term goals and risk management.

Organizations can also empower counsel with a seat at the leadership table, ensuring guidance aligns with immediate and long-term business objectives. Creating a culture that sees in-house counsel as integral to strategy embeds legal insights within business operations, fostering a proactive, compliant, and resilient organization.

Conclusion

In today’s fast-paced business landscape, the value of a preactive in-house counsel approach is increasingly clear. By involving legal teams early and often, organizations do more than mitigate risk – they create a strategic approach that aligns legal standards with business objectives. Preactive counsel transforms the role of in-house legal from a safety net to a strategic cornerstone, driving sustainable growth and risk resilience from within.