Data shows the in-house role is broadening, so law firms need to expand their focus, argues Tim Wilbur
When I ask in-house lawyers what their most important consideration is when evaluating external counsel, their first answer is almost always the same: I want a lawyer who understands my business.
Years ago, their answer would likely have focused more on legal knowledge. The shift not only indicates how the role of external firms has changed, but it also shows how in-house lawyers are increasingly moving away from a purely legal function and expecting their law firms to make the shift with them.
A recent Association of Corporate Counsel survey reflects this shift for in-house lawyers towards a more integrated role within corporate leadership teams. The ACC survey found that in-house lawyers, particularly chief legal officers, increasingly manage non-legal responsibilities, such as risk management, compliance, cybersecurity, and human resources.
“CLOs are key strategic business partners, their responsibilities beyond legal roles are growing, and they are assuming greater leadership across organizations,” said ACC president and CEO Veta Richardson.
Local data in Canada also confirms this trend. An annual in-house counsel report by the Canadian Corporate Counsel Association and Mondaq noted a growing trend of in-house lawyers moving on to non-legal roles.
The report found that many Canadian in-house lawyers have taken on roles in human resources or compliance, and some also moved into non-legal executive roles, like chief executive officer or chief operating officer.
As legal teams become more embedded in strategic decision-making, in-house lawyers must develop business acumen, including understanding finance, operations, and corporate strategy. Many CLOs now view themselves as business partners rather than traditional legal advisors. The CCCA has anticipated this trend for years and has offered in-house counsel programs on business leadership and change management strategies.
While this can be a challenge, it is also paying off financially for in-house lawyers. A recent report jointly published by Counselwell and recruitment firm ZSA Legal Recruitment found that average in-house pay has increased.
While many in-house lawyers are satisfied, the competition for lawyers who bring legal and business acumen is fierce. While 70 percent of the lawyers surveyed in the 2025 report said they received reasonable pay, 40 percent said they would definitely leave their company for a higher-paying role, while another 52 percent said they would possibly do the same.
For law firms advising in-house counsel, this shift provides actual data backing up why in-house lawyers ask their legal service providers to have more business knowledge. As their in-house role shifts across the organization and they get promoted to broader executive roles, they expect their external law firms to move with them. The most successful law firms will be those welcoming the shift.
See more news about in-house counsel on the Lexpert website.
