"Most of the firms began to expand strongly, both domestically and overseas. Chastened by the recession, Herbert Smith preferred to watch and wait, its efforts to set a strategic course being best described as desultory." An apt description, but the following passage from Tom Phillips' surprisingly entertaining book, 'A History of Herbert Smith', actually describes the outlook 20 years ago as the firm peered anxiously at the turbulent early 90s legal market.

Herbert Smith would do well to the learn the lessons of the past – but then this is a firm that has more often seemed bound by history than able to seek instruction from it. It has a proud legacy, having acted for many pioneering and influential corporate clients over its 129 years and, after World War II, having pretty much written the book for the modern City litigator.

And yet here it stands, buffeted by strategic indecision, a broken alliance, lagging performance and a series of unwelcome partner departures. The plain fact is that, as close as Herbert Smith has gotten to the City's top firms in recent years, it is not a magic circle practice. It hasn't got the depth of transactional practice, international muscle, financial performance, bench of partners or tight enough grip of its partnership to be considered in that club. And pretending it does has not only made it less likely for it to become genuinely of that calibre, it has often prevented the firm from playing to its very considerable strengths.

As such, the last 10 years have seen the firm duck difficult decisions regarding partner performance and run itself with one eye on the larger firms it sought to emulate and the other on some outdated notion of collegiality (outdated certainly for a firm with more than seven fee earners for every equity partner).

That ambivalence was painfully on display regarding its former senior partner David Gold. Not since Tony Angel took Linklaters from analogue to digital has a major City law firm shown such unease regarding a former leader, and Angel had a clearer legacy to point to. A cynic may wonder if Gold has become a convenient scapegoat for what ails Herbert Smith. And what has this confused and wishful thinking achieved? A compromise that has satisfied no-one.

Ok, here's the good news. The legal industry is relatively forgiving to law firms once they reach the upper echelons of the international market. The firm's legacy, platform and client base remain enviable, and Herbert Smith is hardly short of good partners. If this year's convulsions prove to be the reality check the firm has so long needed – and there are some positive signs on that front – it could prove a fruitful development. But time and a rapidly evolving legal market won't wait forever. Herbert Smith has to seize its moment – not to be a magic circle wannabe, but the global challenger it could surely become. The alternative is becoming, well, history.