Legal Week

March 19, 2009 | International Edition

A sliver of consolation for law firms concerned with spinning awful partner profit numbers for 2008-09 came last week from celebrated ex-GE head Jack Welch, who criticised the cult that has grown up around shareholder value. In essence, Welch (pictured), regarded by many as the founder of the shareholder value movement in the 1980s, criticised companies' short-term focus on quarterly profitability at the expense of long-term goals. Interviewed in the FT, Welch said: "On the face of it, shareholder value is the dumbest idea in the world. Shareholder value is a result, not a strategy."

By Legal Week

3 minute read

March 18, 2009 | International Edition

The effects of the Solicitors Regulation Authority's (SRA's) latest overhaul of the Legal Practice Course (LPC) will begin to be felt by students and legal service providers during the next two years.Although some LPC providers will implement the new LPC in 2009, most will adopt them in 2010 - the SRA's intended implementation date. The changes that are to be made to the LPC are designed to widen entry into the legal profession by enabling providers to potentially offer students a more flexible way of studying. However, this myriad of new possibilities may have left students and legal service providers feeling confused. Comments on web pages show that students are debating which route they should take; what the cost of the new LPC will be; how long it will take to complete the new LPC; and what will happen when LPC places outnumber training contracts.

By Legal Week

8 minute read

March 18, 2009 | International Edition

Last week we unveiled to our future trainees what we see as a groundbreaking approach in their development: a fully-fledged MBA me with BPP's Business School. Why is Simmons & Simmons doing this? Given the current economic climate, there was a need to give real consideration to our staffing needs. As a firm we actively manage our business, and ensuring that we have the right number of trainees at the right time is key to this. This year presented a unique challenge, given the changes in the market that have occurred since hiring our 2010 trainees. At the end of last year we asked our March 2009 intake if they would like to consider deferring. Many firms now seem to be thinking along the same lines for their September 2009 intake.

By Legal Week

7 minute read

March 18, 2009 | International Edition

I am just coming up to the end of my first term as managing partner of Rickerbys, a 19-partner, Cheltenham-based practice serving both commercial and private clients throughout our region. Despite the challenges brought on by the current economic climate and the pace of change resulting from the Legal Services Act (LSA), I am looking forward to my second term.Prior to being appointed managing partner, I had spent the previous 15 years as a fee earner and subsequently partner in the corporate and commercial team at the firm. I had little prior knowledge or experience of management other than of a small group of fee earners and my secretary.

By Legal Week

8 minute read

March 18, 2009 | International Edition

Staff training and development is a necessary element of any industry, but its role within the legal profession is paramount. Be it professional skills development, keeping up to date with changing law and legislation, new employee induction or the infamous health and safety awareness, training can require huge amounts of investment, both in terms of time and financially. It is essential that employees are provided with the training necessary to perform their roles effectively and meet compliance requirements. But to ensure staff development is effective, and doesn't cost the earth, what measures need to be in place to make sure you're getting the most from your training spend? And what does the future of training in the legal profession hold in terms of learning methods and approaches?

By Legal Week

9 minute read

March 18, 2009 | International Edition

It is a truism that lawyers are the ultimate knowledge workers. In maintaining that position the depth and, importantly, the currency, of a lawyer's understanding form the knowledge bedrock on which their practice is built. However, how lawyers learn and what they learn is changing. Externally, in-house counsel and the organisations that employ them are reviewing their roles.A recent review of training needs shows the pressure on in-housecounsel - as a result of the recent economic upheavals and subsequent corporate insolvencies - to take a wider role as an active risk manager, who is also expected to be the guardian of a company's ethics and its reputation. Where this results in a seat on the main board, the role is no longer that of the traditional detached and reactive legal adviser.

By Legal Week

5 minute read

March 18, 2009 | International Edition

Thacher Proffitt & Wood real estate partner Donald Simone was at his desk on the 40th floor of the World Trade Center's south tower early on 11 September, 2001, pushing to close a deal, when United Airlines Flight 175 crashed into the building about three dozen floors above."When it hit, my whole office moved," Simone recalls. With the electricity off and ceiling tiles falling, he made his way to a stairwell and then to safety.

By Legal Week

16 minute read

March 11, 2009 | International Edition

Say what you like about the City firms axing jobs but, judging from the figures that have so far emerged, firms such as Clifford Chance (CC) have put down more than respectable packages for those unfortunate enough to lose their jobs. An analysis of severance awards at a basket of law firms recently sent to Legal Week concluded that CC was among the most generous in the UK top 50, with a newly-qualified lawyer laid off from CC in line to receive £35,577 on top of notice pay (other firms to rate well included Nabarro and Wragge & Co). Linklaters and Lovells also paid well above statutory requirements. So the bottom line is that, even in this very uncertain job market, very few redundant magic circle assistants will now be unable to make the mortgage.

By Legal Week

3 minute read

February 26, 2009 | International Edition

A reader pointed out that I was a bit vague on this week's leader about how the magic circle will look in the future. So, attempting to rise to that challenge, I said I would come back with more specifics. So here are my less-vague projections on where the partnerships of the big four will be in 2011. A&O will come in around the 425-partner mark. With Linklaters it largely depends in if they make the obvious cuts to their international network. If they don't, you are looking at the 460 region. If they do, it'll be more like 400. I know some rivals think they WhiteShoeCrosswill split from those offices, but I don't have a feel for which way the wind is blowing. Freshfields won't be much different to now – around 440. Clifford Chance will come in under 550, maybe as low as 525.

By Legal Week

3 minute read

February 25, 2009 | International Edition

Do brands matter in law? I've wondered recently, after writing an article on the damage being inflicted on the image of that darling of law schools around the world, Latham & Watkins, as a result of stealth layoff accusations and the reversal in its incredible growth of recent years. Many senior lawyers would say brands don't matter one jot, largely because they see the concept as distinct from what they personally do. This view is both narcissistic and factually wrong. It is narcissistic in the sense that even brilliant partners are not the sole value of a major firm - just the biggest chunk of it. The profession is littered with high-flyers that have floundered once removed from institutions they have come to resent. Such characters overestimate their own contribution and undervalue the firm and all the infrastructure, support and goodwill that has contributed to their success. And, of course, not all partners are brilliant.

By Legal Week

3 minute read