Commercial awareness to the next (in-house) level
Commercial awareness has become such a common phrase that content based around it gets overlooked. We end up reading the same things over and over again that somehow just don't click, leaving us just as baffled as we were before.
Whilst studying, commercial awareness became such a big deal to me that coming across those two words invoked a negative response. I thought I understood the concept, but didn't get the big deal. I now know that that's the point, it isn't a big deal, and chances are you are already doing the basics naturally.
There are however things that you can do to take your awareness to the next level. In this post I share my take as a qualified lawyer on how you can elevate your commercial awareness.
The truth is, there are different layers to commercial awareness. It's easy to fall into the belief that it simply means knowledge, but anyone can have knowledge of current affairs- it's the relevance to the law and your client that counts. The understanding of these different layers will take your commercial awareness to the next level and also add the in-house cherry on top!
1. KNOWLEDGE
The first layer is the common advice that you will see on this subject:
Read BBC business, keep up to date with current affairs and understand changes in law. Review a business' financial performance, understand the general challenges they face and how they may need to adapt. Prioritise the areas that you are interested in and those that relate to the role you are applying for. Do this consistently and you will build up an awareness of the current commercial landscape, helping you to demonstrate you have been keeping track of news updates.
Sound familiar? That's probably because you have read it hundreds of times before and are already doing it just by being active on social media.
But how do you capitalise on this knowledge?
2. APPLICATION
You'll next need to apply this knowledge to the firm or client you are interested in. Answer the following questions:
How does the development in question affect the industry?
What will the client want or have to do as a result?
Does this have the potential to change the way your client operates in the future?
In answering these questions, you have now formed your own opinion on the development. More importantly, this opinion has been created with the client in mind. Easy huh? Now for the most important layer..
3. FLIP IT
Applying this third layer will provide you with the opportunity to shine.
Although you may not stand by it, understanding the other side of the argument is invaluable. By doing this, not only will you have a more rounded knowledge of developments, you won't be caught out when the other side (or an interviewer!) presents a contradicting view.
Neither opinion may be right or wrong, but by appreciating a different view of the world to your own, your awareness moves from being one dimensional to a complete perspective.
Now for the extra in-house layer...
Think of the development as if you were in-house counsel for a business in that sector. Understanding whether this is something that will keep the shareholders up at night as opposed to something you will need to bear in mind for an upcoming contract is key. This will help you to prioritise and determine your response and also ensures that you will stay ahead of the game.
By considering what legal advice you will be expected to provide as a result and what decisions the Board of Directors will be expecting you to be prepared for, you will be able to add the value expected of you as a member of the in-house legal team.
Navigating these steps doesn't need to take hours. Once you understand each layer and apply them regularly, you will begin to work through each in your head automatically once a new development is published. Your approach will then come much more natural to you when those inevitable commercial awareness questions arise.
In order to help you with this, I have created a template that you can use to prepare you for the common commercial awareness interview questions.