Counsel Chronicles: Interview with Lalit Khanna, the GC-turned-COO

Lalit T. Khanna of ST Telemedia Global Data Centres India had a wide-ranging conversation with Vahura about being a GC-turned-COO, talent retention strategies, and reformation of India’s renewable energy policies.

Lalit T Khanna, Chief Operating Officer at ST Telemedia Global Data Centres India (“STT GDC India”) transitioned from the position of General Counsel. Now, he oversees a comprehensive portfolio that includes managing legal and regulatory affairs, governance, certifications, and power procurement (including renewable energy initiatives) while supporting business expansion.

During the 5-plus years of his association with the organization, the India business of the Singapore-headquartered company has expanded its portfolio to 28 data centre facilities across 10 cities, with a critical IT load of ~300 MW. 

Before joining STT GDC India, Lalit worked for a diverse range of companies including Max Healthcare, Carrefour Group India, Uniparts Group, Smart Ventures (Singapore), and Maruti Service Division. 

Lalit very kindly agreed to be our first guest for our new series ‘Counsel Chronicles.’ Through this series, we hope to shine a light on the in-house lawyers who are moving the needle on strategy within their organisation. The idea is to showcase the evolving role of the corporate legal department, as it navigates the opportunities of the digital age, and goes from being a reactive to a proactive department in the organisation. 

With the benefit of hindsight, I believe identifying longer drawn periods is a better barometer for success as opposed to particular anecdotes. A more zoomed-out view better aligns with the role of upper management, where successes are seen through the lens of the organisation’s achievements and the ability to create change.

Over a period of time, by integrating legal expertise into various operational aspects and acting as a business enabler, I have contributed to strategic decision-making, business expansions and mitigating potential risks and legal pitfalls. Specifically, my work in leading legal teams in companies that operate in regulated sectors or provide essential services (like ‘mission-critical’ data centre services and healthcare) has been a key accomplishment. My work in the regulated and essential services sector helped me to learn to manage crisis and navigate a landscape rife with uncertainties. 

The journey from the legal role to the business role has been particularly satisfying. Today, the legal and regulatory team is integral to STT GDC’s decision-making, and my role has been expanded to COO from GC. That is a solid testament of our work.

I lead a team that has a balanced gender composition.  My team also reflects a diverse blend of professional qualifications—we have lawyers, company secretaries, MBAs, engineers. Majority of them hold dual qualifications. The team is a healthy mix of seasoned professionals boasting up to thirty years of experience and fresh talent. Few of my team members have moved organisations with me. I’d like to think my team feels involved and sees their work  as a solid foundation for their personal life and ambition. 

Here, I would quote the mantra of Alex Dimitrief when he was Sr. VP & GC of General Electric, which, as you may know, is a company that revolutionised the GC function from the late 1980s.  He said: “Do people want to hear what I have to say even when they don’t want or like to hear what I have to say?” I have worked extensively to ensure that my team isn’t a relic that is outside looking in. 

I have moulded and groomed my team to develop an understanding of aspects of fiduciary responsibility, engage in cross-team work, and imbibe the organisation’s and cross-teams’ goals as their own. I gauge my team’s success with a twofold approach. First, there is effectiveness, where we see how much we were able to accomplish. Second is how well the team has assisted cross-teams in achieving their goals. 

This year, we have instituted specific metrics whereby the success of their cross-team will gauge the team’s success. This approach has led to quantifiable results where the team’s contribution is evident, be it the (i) contribution for expansions and real estate acquisitions targets, (ii) timely closure of contracts to achieve sales and procurement targets, (iii) certifications, compliances, crisis management and other operational support for smooth business operations, (iv) policy advocacy for achieving fiscal and non-fiscal incentives, (v) ESG initiatives for achieving carbon neutral operations by the year 2030, etc. Our increased role is evident from the rise of the team’s profile in enterprise decision-making and collaboration with a majority of the organisation’s cross-teams.

I have been clear on the need to maintain a lean team that fits neatly with the organisation’s particular needs. 

Apart from qualifications and experience, I specifically look for candidates who have a positive and solution-oriented attitude to strive for the best without compromising on fairness. To ensure a seamless fit, specifically for lawyers, I conduct a written test to assess their drafting and negotiations skills. 

Talent retention is an ongoing process for me. I concentrate on ensuring that the team is well-equipped to undertake their tasks. The team has been able to improve its productivity metrics on the back of standardisation and a degree of automation.  I also invest in the team’s ambition and growth by creating learning targets.  In my role as mentor and coach, I try to ensure that my team finds empathy and support from me. As a leader, I am aware that my team does not have to prioritise work at the expense of their family or other interests. 

I have been able to reap the rewards of my investment in the team. The legal team has one of the lowest attrition and highest satisfaction rates in the organisation, according to a survey conducted by a reputed independent institution. Also, team members continue their association with me through various organisations.  

As legal professionals, we all should remember that ‘Business acumen precedes legal wisdom’. The General Counsel who grasps the business intricacies is the one who shapes the future.

In today’s world, legal advice isn’t isolated; it is integrated into business strategy. General Counsels should not consider themselves merely as lawyers or gatekeepers of the law; they must act as strategic partners. It’s paramount for a General Counsel to understand the business, financial models, operational intricacies and industry nuances.

Being an in-house counsel, we must analyse and ask: “How does this contract impact our growth trajectory?” or “What legal risks align with our market expansion?” or “Is it really worth litigating a matter or will it harm our reputation or hinder business partnerships?”

By immersing themselves in the business, General Counsels become architects of informed decisions. They don’t just interpret statutes; they translate legal implications into actionable insights for the leadership team and the Board of Directors. 

Most General Counsels have already adapted to the opportunities and changes caused by a more globalised world. General Counsels have been able to deal with transnational regulations and complex deals, and the past few years have been spent trying to read the tea leaves about Artificial Intelligence. 

Presently, the use of AI in the legal sector is limited to automated contract review, legal research or transcription. But it has the potential to revolutionise how legal and policy matters are handled. The growth of AI-enabled legal research, litigation strategy, risk assessment, compliance management and contract review and negotiation tools could provide the means for General Counsels to redesign their manner of working. Effective use of these tools by General Counsels could improve their efficiency, reduce costs and help them focus on more strategic work.

However, AI as a product or a service could bring a new regulatory paradigm and aspect to transnational data flow. The processing and handling of this data would require General Counsels and their teams to be cognizant of the possible regulatory challenges. 

Firstly, I must mention that there have been several positive changes in the last decade. Governments at both the central and state level have been quite  responsive and investor-friendly. Speaking from the lens of our business, there has been a clear recognition of the need to foster data, and scaling technology infrastructure. 

However, the treatment of industry and corporates in India still has a long way to go before being considered mature. In my view, the government should focus on reforming the overt and overlapping regulation of industry.

Also, there is a need to implement laws and policies without friction after they are notified or announced. Several times, the effective implementation of the fiscal and non-fiscal incentives becomes a protracted ordeal, necessitating a series of notifications, government orders, and amendments in multiple laws and regulations, which ideally could have been avoided by giving overarching enforcement to the sector-specific policies. 

Another area where the Government could consider reforms is clean and renewable energy policy. There is a need for uniformity in the policy across all the states. The recent announcements relating to roof-top solarization, green energy, etc. in the Interim Union Budget 2024-25 is a welcome step. However, they also require clear and consistent legal frameworks. There is a desperate need to clarify disparate treatment by different levels of the states on the promotion of renewable energy and discontinuation of charges and costs that either disincentivize renewable energy or competitive practices. This is not to say that steps in the right direction haven’t been taken but the industry does suffer from delays and excessive regulation.

I have been leading the legal profile for the longest time, and the journey has been fulfilling. Yet, the law has been a means to an end for my interest in the business strategy side of things. If I hadn’t pursued a career in law, I would have entered headfirst into a strategic advisory role, leveraging my MBA and solution-oriented approach to offer comprehensive guidance to organisations.

Yet it seems that the winding path of the law has brought me back to an aspiration of mine. More importantly, I believe it has provided me with life experiences and learnings that would hold me in good stead in my new position as a COO.