PRESS: Fractional GC work
Commentary in Lucy Floyd’s interesting piece in The Lawyer about fractional GC work. Extract below and you can read the full piece here.
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“Here’s the latest workplace buzzword: no, not hybrid, but fractional. A fractional worker is someone who is drafted in by a business to do specific tasks by employers that cannot afford or access their expertise full-time.
The demand for fractional legal work has risen with the emergence of new industries; particularly start-ups and fintech businesses lacking revenue to fund a full-time legal head. High-growth companies are the other big-hitter among a fractional GC’s clientele, who require a GC for sustainable growth and strategic planning. Most fractional GCs operate on a contractual basis and are paid on a daily rate.
…Once start-ups reach the growth stage of business, a fractional GC can support positive valuation for the company. Many venture-capital backed businesses seek support through funding and post-funding rounds as they navigate legal obligation.
Cogan adds: “With hyper-growth companies now more laser-focused on their budgets, the fractional approach enables companies to get better value for money by tapping into specialists in the type of advice required for fast moving, nimble enterprises.
“Executing at speed is critically important, so there is pressure on management teams to do so as quickly as possible – we know that having advisors in the business who can help teams ‘see around corners’ gives a huge advantage.”
As well as supporting funding rounds, fractional GCs can give strategic input to businesses that can’t afford a lawyer with the expertise to strategise. Jenifer Swallow provides strategic advice to start-up and scale-up companies and also offers ‘GC to GC’ support for clients who wish to talk matters through.
She explains: “Often, a business will establish a lawyer with 4-5PQE as their head of legal. They can complete contracts and respond to basic legal tasks, but don’t have any strategic experience. So, the business will draft in a fractional general counsel to establish a strategic plan that is implemented by others.”
You can see why this is becoming attractive to companies. They benefit from working with fractional GCs on a retained and long-term basis. The GC is able to get under the skin of the C-suite and understand what is keeping them up at night to implement proper infrastructure. This infrastructure could involve questioning business priorities, removing roadblocks and completing transactional work as well as helping them scale.
Cogan asserts that the fractional GC is able to work more closely with the CEO. “The fractional GC role is seen by our clients as less ‘ad hoc’ or arms’ length than what they have experienced traditionally, with our team occupying the ‘side car’ working alongside the entrepreneur to provide advice and horizon scanning on the journey”, he argues. “The fractional GC also brings the experience of advising lots of different companies to each business.”
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Working as a consultant rather than an employee means that fractional lawyers need to be agile and flexible. As a freelancer, your income can be variable, and you may need to be more entrepreneurial to attract clients by monetising your knowledge. Organisation, time management and a risk appetite all need to be strong when managing a number of clients.
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Some fear a consultant may invest less time and care as they can be more detached. However, Swallow asserts that a good consultant can have the same level of enthusiasm and interest in creating value.