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Explosive growth, like that experienced by Netcompany, constantly imposes new demands on the management of the company, just as it increases the pressure on the company's support functions. Growth of the scale that Netcompany has undergone and continues to experience requires a strong DNA. Fortunately, the company possesses this, and there is no doubt that employees are considered the key to success. Both flexibility and shared values are held by all 1,800 employees.
In the summer of 2018, Netcompany went public, which demanded a lot from the company's employees. In addition to handling client tasks, several key employees were also involved in the extensive preparations for the IPO.
Already when the plans for an IPO were on the drawing board, it was decided to strengthen the organisation with, i.a., an in-house Legal function, and Netcompany hired Tine Kosmider Boye as General Counsel.
Tine came with a background as a lawyer from a major law firm and several years of experience as an in-house Legal Counsel with NETS, and she has been able to draw on this experience both in relation to the IPO process and in her daily support of the business.
“Some distance themselves if the language becomes too legalistic, so it's important to speak the same language as your colleagues rather than like a lawyer.”
A brand new department
So far, Netcompany hadn't needed an actual in-house Legal function, managing instead with a combination of external advice and significant responsibility for contract work placed on the project-responsible partner.
Generally, the in-house Legal function in many companies was often previously regarded as the 'no' department, but today the role of General Counsel in a company has a much more varied and valuable role as a support function for the business. A General Counsel who embodies this value-creating role has a deep understanding of the business and can act more solution-oriented than by solely using external legal assistance.
In companies where there hasn't previously been an in-house Legal function, it can be a challenging to create both awareness and trust that the function is there to support and assist the business and colleagues throughout the organisation. Tine Kosmider Boye has therefore focused on both getting to know the business well and building trust among her colleagues that they benefit from using Legal.
"Some distance themselves if the language becomes too legalistic, so it's important to speak the same language as your colleagues rather than like a lawyer. At the same time, a deep understanding of the business is required to be able to support it,’ says Tine.
In the beginning, Tine focused much on being on-site in the organisation to meet colleagues at eye level and adopt a listening approach to understand what each person is working on and their success criteria. With regard to colleagues in foreign companies, she has been mindful of using time in the same way when meeting them at meetings and events.
"It has given me some good to-do lists and the opportunity to get to know the company thoroughly much faster than I would otherwise," says Tine. In this way, she has been able to offer specific help with specific tasks more quickly.
“It is perfectly normal to take a commercially justified risk, and it is therefore important that those negotiating know what risk they are taking."
"It is perfectly normal to take a commercially justified risk, and it is therefore important that those negotiating know what risk they are taking. The project managers are really skilled at breaking down risks into individual deliverables, and the Legal team's primary contribution has been to support identifying and minimising more legally oriented risks. I've seen some formulations that at first glance looked okay, but where small legal changes have a major impact,’ says Tine, appreciating the good collaboration with the business.
"The success criterion for me is that Legal is regarded as a value-creating part of the business, which by default never says no, but instead helps find a solution that is also legally correct."
About Tine Kosmider Boye
General Counsel responsible for legal matters, head of the board secretariat, sparring partner, and specialist in IPO processes, corporate law, capital markets, private equity, contracts, etc.
There is no shortage of exciting tasks, solid experience, and a high level of competence when it comes to Tine Kosmider Boye. Most recently, she has established an in-house Legal function, contributed to the IPO process, and participated in the implementation of GDPR compliance.
Today, the department consists of two additional lawyers and a student assistant.
Understand the business, and be humble
For Tine Kosmider Boye, there are four important points to consider when stepping into the role of General Counsel:
1. Understand the business and the industry
Understand how the company makes money. Seek out key employees to understand how their part of the company impacts the business and contributes to success. You can provide genuine, value-creating advice and support only if you know the business.
2. Be humble
Remember that an in-house Legal function is a support function for the entire business and not an adversary. Show that you trust everyone in the organisation and understand the needs of the business. Treat everyone with respect, and be open and accessible.
3. Exercise sound and sensible judgment
Make sure to use common sense and always include the commercial aspects in your advice. It is important to protect the company's assets and reputation.
4. Be proactive
Bliv synlig i organisationen, så det bliver naturligt at henvende sig til Legal, og opsøg selv opgaverne. Derudover er det vigtigt at have styr på compliance og processerne, og det er vigtigt at finde en løsning, hvor Legal ikke bliver flaskehals.
A flat hierarchy
Tine quickly saw that Netcompany is a very agile company with creative and competent employees. Previously, everyone was used to handling things themselves, identifying risks, and negotiating contracts, and in her view, they are very skilled at it.
The company negotiates some very large contracts at partner level both in Denmark and abroad. To some extent, it may be necessary to have guidelines for when Legal should be involved in other contract negotiations, but Tine Kosmider Boye has deliberately chosen to make the Legal function as accessible as possible.
As the entire organisation has begun to consider Legal a collaborator, word spreads when someone has benefited from the help Legal offers, attracting others. For Tine and her team, it was a huge success when employees started approaching Legal on their own. Trust has been built that Legal can help make their work even better.
"If you are to help the business, it's really important that you understand the business and find a good way to collaborate. Of course, there are also situations where it's just as important for the business that Legal highlights risks that could be deal-breakers. But if employees generally have good experiences with Legal, they also respect when this happens," says Tine Kosmider Boye.
Today, Legal is involved in new projects as soon as a draft contract is available. By being involved from the beginning, Legal can advise on potential risks at an early stage, and it is then up to the individual project owner to, for example, incorporate risks into the price offered or negotiate an alternative solution.
The important compliance
Compliance is a natural first priority for Legal; it neither should nor can be otherwise.
A large part of the work therefore consists in ensuring that the company remains compliant with legislation, including stock market regulations, corporate governance, etc. It has gradually become clear to the rest of the organisation how beneficial compliance support from the Legal function can be: HR employment law in connection with the ever-increasing number of employees, ongoing follow-up and compliance with GDPR, adherence to stock market rules, tenders, other contracts, and not least acquisitions in other countries.
About Netcompany
Netcompany was established in 2000 and still has its headquarters in Copenhagen. The company, which has approx. 1,800 employees, delivers business-critical IT solutions. In addition to Denmark, Netcompany has subsidiaries in Norway and the UK, as well as sourcing centres in Poland and Vietnam.
In 2017, Netcompany had a turnover of 1.41 billion DKK, and on June 7, 2018, the company went public after being partially private equity-owned. In the first half of 2018, Netcompany had a turnover of just over one billion DKK, with an expected growth of 42-44 per cent for the entire year.
Together with Copenhagen Airports, TDC, and Danske Bank, Netcompany has committed to a Digital Pledge, where they are obliged to develop 500 new IT talents annually.
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