Slaughters reviews governance as Saul prepares to take control
For a firm that sets great stall in maintaining the status quo, it is interesting to note that Slaughter and May has a body called the constitutional working party (CWP). The little-known group has been in action again recently, reviewing Slaughters' governance to coincide with this month's election of new senior partner Chris Saul. The process is the first review of its management since outgoing senior partner Tim Clark took up the role seven years ago. By the yardstick of most corporatised global law firms, the results of the review may seem minor but, by Slaughters' standards, the process has been substantial, examining its core leadership, practice management and the working of its 'best friends' alliance of international firms.
January 23, 2008 at 11:44 PM
19 minute read
The original version of this story was published on Law.com
For a firm that sets great stall in maintaining the status quo, it is interesting to note that Slaughter and May has a body called the constitutional working party (CWP). The little-known group has been in action again recently, reviewing Slaughters' governance to coincide with this month's election of new senior partner Chris Saul. The process is the first review of its management since outgoing senior partner Tim Clark took up the role seven years ago.
By the yardstick of most corporatised global law firms, the results of the review may seem minor but, by Slaughters' standards, the process has been substantial, examining its core leadership, practice management and the working of its 'best friends' alliance of international firms.
The process has also led to one notable shift, the decision to make the practice partner role currently held by the retiring David Frank an elected position. The job, which was created in 2001 when Clark took the helm, was previously appointed at the discretion of the senior partner.
The practice partner, who will now also sit on Slaughters' board, takes responsibility for the firm's international relationships, as well as overseeing day-to-day practice management alongside the senior partner.
The position, alongside the executive partner brief, will come up for grabs in the spring. The latter role, currently held by Melvyn Hughes, is primarily an operational function, covering areas of practice support including human resources, finance and logistics.
Unsurprisingly, Saul does not envisage major departures from the style honed by Clark, although the firm is at pains to stress the role carries more executive weight than some rivals imagine; Saul expects to spend about half his time on his ambassadorial brief, which includes external communications and client contact.
Additional duties cover practice management (including managing conflicts, client development and practice strategy), overseeing international strategy (largely monitoring Slaughters' referral relationships) and acting, in Clark's words, as the firm's "pater familias" - providing a sounding board for individual partners and staff.
As outgoing leader, Clark is keen to impress that the role and the interaction between the three executive jobs is not limited or even explicitly defined. "We are a management consultant's nightmare," jokes Clark. "We have no defined roles."
Defined or not, Slaughters' rivals will be watching Saul's appointment for clues as to the firm's direction and style.
While Saul is regarded to be as much of a diplomat as Clark, the self-confessed car fanatic brings a more offbeat energy than his predecessor. Swiftly garnering praise from rivals and referral firms, Saul is viewed as an accomplished technician who can marshal a smoother style than some of Slaughters' more robust personalities.
As such, he is seen as more of a natural consensus-builder than some of his rivals in the senior partner election (the firm declines to comment on other candidates but Slaughters-watchers have cited M&A head Stephen Cooke and corporate veteran Frances Murphy as likely runners).
While Saul looks set to enjoy wide support within the firm, he will be leading under different circumstances to Clark. While Clark and his predecessor, Giles Henderson, led Slaughters through the unsettling emergence of global rivals, when such firms existed more in theory than practice, Saul takes the helm at a point where the global firm concept is fast becoming a potent and polished reality. This fact is attested to by the big four's domination of the Legal Week/Mergermarket lead adviser rankings, which track the top M&A roles on Europe's largest deals.
Clark's response to that threat was largely to attach booster rockets to Henderson's best friends concept, a process which has seen the firm invest more time in co-ordinating with its core referral partners and widening its network beyond its European heartlands. Counter-intuitively, this coincided with the firm shutting branches in Singapore and New York in 2004.
In particular, having decided it needed either to expand or close, the withdrawal from Singapore led to a concerted push to improve its network of referral partners across the region.
Part of this drive has involved giving greater weight to assigned 'country partners', who are responsible for overseeing the firm's relationships in major jurisdictions. Following the closure of Singapore, partner George Goulding took charge of a push to expand referral links in Asia.
Slaughters concedes that Asian links have come more easily than those in the Middle East, partly due to the firm's longstanding presence in Hong Kong.
As such, the firm remains notably light on major transactions in the Middle East, with much of its work centred on projects. However, partners Steven Galbraith and David Wittmann are overseeing the firm's efforts in the region as Slaughters attempts to make up ground. The firm is also attempting to broaden its network in India and China.
In the US, the referral network is more established. Since the closure of its New York branch, the firm argues that its referral links have become stronger, building on relationships with firms like Wachtell Lipton Rosen & Katz, Davis Polk & Wardwell and Cravath Swaine & Moore. One of Clark's first moves was to set up a Wall Street delegation every six months, led by Clark, Saul and Cooke, which they argue has been very successful.
Saul comments: "If you looked back five years ago, I would have said our relationships with US firms were a bit patchy, a bit episodic. There is a now richer, more textured set of relationships than before."
This is just as well, as Slaughters' referral network is set to face its stiffest test yet, as the firm and its allies move to compete against increasingly polished international networks.
While conceding that magic circle rivals have raised their game, Slaughters is confident its updated model can compete, arguing that it knows its main referrals partners better than many international giants know their own foreign offices.
Clark says: "It has become harder, in that we have to be better. Internally we liken it to the old Avis slogan, 'We try harder'. Without a big global brand to work off, we have to work harder."
Slaughters argues that its strength is in its unique approach, while pointing to its work advising Santander on the ABN Amro bid and Akzo Nobel on its takeover of Imperial Chemical Industries as evidence of its cross-border prowess. On both these bids the firm worked with referral partners, including Sullivan & Cromwell and De Brauw Blackstone Westbroek.
Responding to comments about the tougher competitive environment, Saul adds: "We have got something a bit different. It is a bit like saying to clients, 'Why don't you take this super-charged Ferrari instead of just a Ferrari?'."
Editors' Blog: A disarming new head to lead Slaughters
Click here for an American view of the appointment of Saul.
More news, comment and analysis on Slaughter and May
Slaughters on the Legal Week Wiki
For a firm that sets great stall in maintaining the status quo, it is interesting to note that Slaughter and May has a body called the constitutional working party (CWP). The little-known group has been in action again recently, reviewing Slaughters' governance to coincide with this month's election of new senior partner Chris Saul. The process is the first review of its management since outgoing senior partner Tim Clark took up the role seven years ago.
By the yardstick of most corporatised global law firms, the results of the review may seem minor but, by Slaughters' standards, the process has been substantial, examining its core leadership, practice management and the working of its 'best friends' alliance of international firms.
The process has also led to one notable shift, the decision to make the practice partner role currently held by the retiring David Frank an elected position. The job, which was created in 2001 when Clark took the helm, was previously appointed at the discretion of the senior partner.
The practice partner, who will now also sit on Slaughters' board, takes responsibility for the firm's international relationships, as well as overseeing day-to-day practice management alongside the senior partner.
The position, alongside the executive partner brief, will come up for grabs in the spring. The latter role, currently held by Melvyn Hughes, is primarily an operational function, covering areas of practice support including human resources, finance and logistics.
Unsurprisingly, Saul does not envisage major departures from the style honed by Clark, although the firm is at pains to stress the role carries more executive weight than some rivals imagine; Saul expects to spend about half his time on his ambassadorial brief, which includes external communications and client contact.
Additional duties cover practice management (including managing conflicts, client development and practice strategy), overseeing international strategy (largely monitoring Slaughters' referral relationships) and acting, in Clark's words, as the firm's "pater familias" - providing a sounding board for individual partners and staff.
As outgoing leader, Clark is keen to impress that the role and the interaction between the three executive jobs is not limited or even explicitly defined. "We are a management consultant's nightmare," jokes Clark. "We have no defined roles."
Defined or not, Slaughters' rivals will be watching Saul's appointment for clues as to the firm's direction and style.
While Saul is regarded to be as much of a diplomat as Clark, the self-confessed car fanatic brings a more offbeat energy than his predecessor. Swiftly garnering praise from rivals and referral firms, Saul is viewed as an accomplished technician who can marshal a smoother style than some of Slaughters' more robust personalities.
As such, he is seen as more of a natural consensus-builder than some of his rivals in the senior partner election (the firm declines to comment on other candidates but Slaughters-watchers have cited M&A head Stephen Cooke and corporate veteran Frances Murphy as likely runners).
While Saul looks set to enjoy wide support within the firm, he will be leading under different circumstances to Clark. While Clark and his predecessor, Giles Henderson, led Slaughters through the unsettling emergence of global rivals, when such firms existed more in theory than practice, Saul takes the helm at a point where the global firm concept is fast becoming a potent and polished reality. This fact is attested to by the big four's domination of the Legal Week/Mergermarket lead adviser rankings, which track the top M&A roles on Europe's largest deals.
Clark's response to that threat was largely to attach booster rockets to Henderson's best friends concept, a process which has seen the firm invest more time in co-ordinating with its core referral partners and widening its network beyond its European heartlands. Counter-intuitively, this coincided with the firm shutting branches in Singapore and
In particular, having decided it needed either to expand or close, the withdrawal from Singapore led to a concerted push to improve its network of referral partners across the region.
Part of this drive has involved giving greater weight to assigned 'country partners', who are responsible for overseeing the firm's relationships in major jurisdictions. Following the closure of Singapore, partner George Goulding took charge of a push to expand referral links in Asia.
Slaughters concedes that Asian links have come more easily than those in the Middle East, partly due to the firm's longstanding presence in Hong Kong.
As such, the firm remains notably light on major transactions in the Middle East, with much of its work centred on projects. However, partners Steven Galbraith and David Wittmann are overseeing the firm's efforts in the region as Slaughters attempts to make up ground. The firm is also attempting to broaden its network in India and China.
In the US, the referral network is more established. Since the closure of its
Saul comments: "If you looked back five years ago, I would have said our relationships with US firms were a bit patchy, a bit episodic. There is a now richer, more textured set of relationships than before."
This is just as well, as Slaughters' referral network is set to face its stiffest test yet, as the firm and its allies move to compete against increasingly polished international networks.
While conceding that magic circle rivals have raised their game, Slaughters is confident its updated model can compete, arguing that it knows its main referrals partners better than many international giants know their own foreign offices.
Clark says: "It has become harder, in that we have to be better. Internally we liken it to the old Avis slogan, 'We try harder'. Without a big global brand to work off, we have to work harder."
Slaughters argues that its strength is in its unique approach, while pointing to its work advising Santander on the ABN Amro bid and Akzo Nobel on its takeover of Imperial Chemical Industries as evidence of its cross-border prowess. On both these bids the firm worked with referral partners, including
Responding to comments about the tougher competitive environment, Saul adds: "We have got something a bit different. It is a bit like saying to clients, 'Why don't you take this super-charged Ferrari instead of just a Ferrari?'."
Editors' Blog: A disarming new head to lead Slaughters
Click here for an American view of the appointment of Saul.
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