A recent white paper from Tatum, LLC describes today’s CFO as being under “intensifying performance pressure”, at “high risk, and with a job “virtually impossible for one person to do”. In the face of these ever growing burdens, Tatum calls for the CFO role “to be redefined, requiring a fundamental paradigm shift by the CFO in the management of the entire financial function.”

The challenge for today’s CFO is to outsource the non-core tasks to others so he can focus on core functions.

An Entrepreneur.com article recommends that the CFO hire a controller so he “could spend a little less time bean-counting and a little more time on strategic, growth oriented issues”. In the article Cynthia Jamison of Tatum says, “There are a lot of things that get swept under the CFO’s role that take them outside their comfort zone”.

One such function that falls to the CFO by default is legal. Many CFO’s are reluctant to phone outside counsel, knowing that the call may lead to thousands in legal fees. So they spend some of their time reviewing real estate leases, negotiating software licensing agreements, dealing with employment law issues and managing litigation. Not only is this a poor use of the CFO’s time but it may expose the company to significant risks and liabilities.

A better, more cost-effective legal solution would be to retain a part-time general counsel. A part-time GC visits the company on a regularly scheduled basis. She becomes a part of the CFO’s team. She develops a deep understanding the company’s on-going business. She cultivates relationships with other members of the management team. The CFO can punt all of the company’s legal and quasi-legal matters over to the part-time GC. The GC becomes responsible for getting problems solved, documents reviewed, deals negotiated. Those matters get handled quickly and with the appropriate expertise. The CFO maintains oversight but is less actively involved.

Fees are fixed on a monthly basis based on the number of days the GC is scheduled to spend at the company’s office. Unlike hourly rates charged by traditional law firms, fees are predictable and can be budgeted. The company gets the level of legal services that fit its unique legal needs at an affordable cost.

A part-time general counsel may not be the answer to all of the CFO’s prayers but it can certainly answer some of them.

Jerry Bloch