A common way to structure panels is by country or region. Especially for large, international companies, this division is often obvious.
There is the headquarters with the corporate center where the expert areas are based. The General Counsel, the Global Head of M&A, the Global Head of Corporate Governance and Disclosure, the Global Head of Litigation – you get the idea. These heads are responsible for their specific areas for the group. The in-house counsels themselves are experts in the relevant practice area and need the support of specific firms organized in practice area panels.
Their colleague at the Dutch branch office has a very different role. They will have to deal with everything that gets thrown at them from the business in the Netherlands locally. They are much less likely to need an expert patent lawyer and have much more use for a good all round law firm with solid credentials.
For some international companies, a few internationally operating firms that cover all their core jurisdictions can be helpful. Keep in mind when going down the ‘global law firm’ route that in many countries, the global law firm is locally not the cheapest option. The local in-house counsel may even object to using the global firm because they have better connections or experience with another, local firm. However, what is good for the Dutch branch, may not always be best for the group. By pooling the countries, you can negotiate a better rate for all the work. You also get to manage the relationship centrally and get to work with a firm that has a good understanding of your business in multiple jurisdictions.
That is not to say that you should not listen to your in-house counsel on the ground. There is the risk that the ‘global law firm’ brand is making the local firm look better than they are. Global players often merge with local shops when they are expanding their network. If they absorb a firm that you would not use before the merger, it may not be a good idea to use them after. In some countries you may want to stick to a ‘local champion’ giving you the best of both worlds: a knowledgeable local firm at a reasonable rate.
A word of warning, though, about local champions. Several countries in Africa, Asia and South America and the Middle East are considered high risk from a compliance perspective. Finding a reliable law firm there can be a challenge. As companies ramp up their third-party compliance programs, it becomes next to impossible to find a local firm in, for example Cameroon, that can comply with all the requirements. The irony is that these are often the countries where companies are in dire need of reliable legal advice when something goes sideways.
A tried and tested solution for this is to use a global player / local champion mix. For example, in one instance we found a partner at the French branch of an international firm that could cover several French speaking African countries. This partner was qualified in some of the jurisdictions himself and had extensive experience in Africa in general. In additional, his team uses vetted local counsel where needed.
When it comes to getting reliable geographical law firm coverage for your business, a little creativity may be needed. Getting this sorted may not be such a clear money saver as the practice area panels are but regional coverage should keep your outside counsel manager up at night. You don’t want to be caught out without a firm in Cameroon.