Overview compiled by Chris Heale
‘Commercial awareness’ is a trait often cited as desired by employers. However, what it actually and substantively is can at times appear nebulous – and demonstrating it to prospective employers can be even more challenging.
Commercial awareness: so, what is it?
Broadly speaking, commercial awareness is being conscious of developments in the business world – be it legal, political, or financial. For example, if a client were setting up a business that sold meat, but a bill was in transit through Parliament which would heavily tax meat – thus potentially affecting this business’ prospects – commercial awareness would be an ability to advise the client as to these legal changes impacting commercial outcomes.
However, as the abstract noun and suffix ‘ness’ suggests, this is not a traditional ‘hard’ skill which can be taught per se, rather a constant state of being in-tune with real-world developments – a skill which is to be grown, maintained and cultivated, not dissimilar to more traditional skills honed through Continual Professional Development (CPD).
How can I develop and demonstrate commercial awareness to employers?
Firstly, this is not something which develops overnight. Below are some specific examples of methods to assist you to develop commercial awareness. If you can decide an area of future practice, it is easier and more productive to stay in-tune with changes in just that sector.
Keep up to date with the news – Perhaps the most infallible method to stay up-to-date with changes is by regularly reading business and financial news. Broadsheets such as The Times, The Guardian, The Daily Telegraph, Economist, and the Financial Times are all good examples of reputable publications to subscribe to. Alternatively, many of these can be accessed online as can other online publications such as BBC news, Reuters, Bloomberg and numerous legal podcasts such as Radio 4’s Law in Action. Make sure to avoid tabloid newspapers such as the Daily Mail, Daily Express and The Sun. Again, if you have decided on an area of practice, reading specialised industry publications is an excellent way of staying in tune with your niche area. For example, if you wanted to practise in Property Law, LegalLease.co.uk offers a ten issue per year periodical, aptly named ‘Property Law Journal’.
Work experience/Internships/Part-time work – All of these can offer invaluable ‘hands on’ day-to-day industry insight. Whilst there, observe and form opinions about how the business operates beyond your role. Prospective employers will find it attractive if you are perhaps able to suggest constructive changes to the way that business operates. For example, if you worked at a law firm and you noticed a seasonal increase in clients which the firm may ordinarily struggle to cope with, it would be the ability to highlight this and suggest appropriate preparations. This demonstrates a propensity to react dynamically to a business’ needs.
You should not rely on paid work solely for commercial awareness. In my opinion, although it can be an auxiliary benefit, it is better derived from internships, vacation scenes or shadowing opportunities since paid work is usually in a narrow, often non-legal, field.
Network – Whenever possible, speaking to or connecting with Practitioners on social media platforms such as LinkedIn can offer first-hand narratives on your chosen sector. These platforms provide an opportunity to ask any questions which you have. Be sure to diversify the people you speak to, even within the same area of specialisation. For example, if you knew you wanted to practise in Criminal Law, a CPS-funded prosecution Barrister may cite differing sector issues and perspectives than a defence Barrister whose work is mainly funded by legal aid.
Acknowledgments and further reading
The following useful sources have been consulted in preparing this overview:
Law Careers, ‘A guide to commercial awareness’ (LawCareers.net, August 2020) < https://www.lawcareers.net/Explore/Features/18082020-A-guide-to-commercial-awareness#:~:text=Commercial%20awareness%20essentially%20means%20understanding,client%20to%20meet%20those%20needs.> accessed 3 September 2020.
The Lawyer Portal, ‘What is Commercial Awareness?’ (The Lawyer Portal) <https://www.thelawyerportal.com/free-guides/commercial-awareness/> accessed 3 September 2020.