Going global and a 'one-firm approach' – SJ Berwin's new head sets out his agenda
"Clearly the most essential part of the job is to listen to the partners. I will form a leadership team with Rob but we do not pretend to have a monopoly on wisdom" - Sofia Lind talks to new SJ Berwin senior partner Stephen Kon...
March 22, 2012 at 08:03 PM
7 minute read
Sofia Lind talks to the newly-crowned senior partner of SJ Berwin about his vision for the firm going forward
Management elections in the legal industry don't usually attract much attention – but then SJ Berwin has never been one of the herd. As such, last week's appointment of competition head Stephen Kon (pictured) as its new senior partner in an election against litigation partner Hilton Mervis has attracted plenty of scrutiny.
Partly, this is because the famously individualistic law firm has form for bumpily contested elections. Kon had been seen as a contender to current senior partner Jonathan Blake in 2005 at what was seen as a key moment for the firm, when long-time head David Harrel stepped down.
With SJ Berwin's practice taking a battering during the 2009 recession, current managing partner Rob Day narrowly secured victory in a divisive contest against Perry Yam in 2010. The election was fought in the wake of the firm's unsuccessful merger bid with New York's Proskauer Rose, which had itself divided the top 20 UK law firm. Plainly, this is an appointment with its fair share of organisational 'baggage'.
Discussing his role in the wake of his election, Kon says that international expansion and fostering a more integrated approach are key priorities.
Kon also says that improving the firm's profitability is a key goal. Given that profitability already rebounded 27% to £626,000 during 2010-11, that priority suggests SJ Berwin remains a very commercially minded outfit.
But it seems apparent that much of the attraction for Kon in taking on the senior partner role lies in directly shaping the firm's future after joining as a founding partner 30 years ago. Indeed, it is widely believed by SJ Berwin partners that the chance to take the senior partner job was instrumental in getting Kon to reverse his resignation last year to join Milbank Tweed Hadley & McCloy.
Kon says: "I've been with SJ Berwin pretty much all of my career. I have a lot of ideas for the firm going forward, and I share this vision with Rob [Day]."
The US merger issue – of course – still looms large over the firm. As a member on the firm's then strategy committee, Kon was heavily involved in the Proskauer merger bid. But while SJ Berwin's management remains convinced there is a good case for a US union, the enthusiasm to push for a deal in the medium term appears to have ebbed somewhat. Kon comments: "I made it very clear that I was not standing on a merger platform, but that I would not exclude it."
With SJ Berwin aiming to move forward under its own steam, Kon pledges that the firm will continue its programme of international investment. There will also be efforts to continue building out its practice – the firm has sought to grow its energy practice in recent years – including expanding its well-regarded disputes practice.
Recent years have also seen the firm cautiously expand beyond its European heartlands, with launches in Dubai, Hong Kong and Shanghai. This has seen the firm making some progress in Dubai, which now counts five partners and has a strong practice focused around litigation and alternative dispute resolution.
However, Shanghai and Hong Kong remain relatively undeveloped, with Hong Kong also seeing the departure of Daniel Liew, the partner hired to head the base, last year to SNR Denton. Kon says growing the two Chinese branches is a key goal, while the firm also has its sights set on Singapore, in part to bolster its disputes practice.
A major element of Kon's election platform is a project to push the firm's international network into working on a practice group first, geographic area second, basis. This process is closely linked to a key client programme that will target the expansion of strategic client relationships across practice group and office borders.
Kon also speaks of ensuring there is a "one-firm approach", a laudable goal for a firm with a reputation for partners hoarding work (the "sharp elbows and insecurity" David Harrel once humorously used to describe the firm's partnership). Kon takes up the point: "The firm has a lot of great clients but they tend to be clients of a practice area or an office. A focus area for me will be to work with the partners of this firm to expand those relationships to span the whole business."
Back in the City
Despite its plans for international growth, there is no doubt that the firm remains strongly focused on the City – which generates more than half its revenues and where it aims to invest in corporate, finance, real estate and litigation and disputes.
A key issue will be retaining lawyers and rebuilding after a period in which it has lost several well-regarded partners. Last year saw the departure of venture capital specialist Perry Yam for Reed Smith, while the firm lost an eight-lawyer investment funds team led by partners Nigel van Zyl and Oliver Rochman to Proskauer in June, in what many saw as a damaging loss for SJ Berwin's most high-profile practice.
The firm has hired in the City, with the recruitment of Sidley Austin finance partner Andrew Bliss, who joined as its second structured finance partner in November. This year, it also added City energy partner Neil Upton from Greenberg Traurig Maher as co-head of the global group alongside existing City energy partner Elaine Gibson-Bolton. However, there is no doubt that SJ Berwin will want a period of stability in its senior ranks and will surely hope to score a few well-targeted laterals.
There is one area in which Kon will be looking to quickly deliver: improving the firm's often derided inter-partnership communication. He says: "Clearly the most essential part of the job is to listen to the partners. I will form a leadership team with Rob but we do not pretend to have a monopoly on wisdom. I want to bring as many partners as possible into the strategic process and make sure we are making use of the full extent of talent in the firm."
Kon is set to step down as head of the European competition group on 1 May – a new leader will be named within the next six weeks – but he is not intending to give up all of his client relationships. He has close relationships with companies including Universal, for whom he acted on the merger with EMI, drinks giant Diageo and Iceland Foods, to name a few.
But Kon downplays the effect that his appointment will have on the competition department. "SJ Berwin has a significant competition practice in London, with eight partners in total, and most of my work has been together with another partner. I will continue to act on legacy work and keep in close contact with my biggest clients."
However, he adds: "My biggest clients going forward will be the partners of this firm." He will probably have his hands full.
Kon – history in brief
- Studied Law and European Studies at Sussex University, followed by a post-graduate course in European Law at the College of Europe in Bruges. This was followed by in-service training with the Legal Service of the European Commission and he was then at Simmons & Simmons, before lecturing in European Community Law for five years at Reading University and the School of European Studies at Sussex University.
- Joined SJ Berwin to create the EU Competition Law Department in 1982 and headed this department in London until 2008. He is currently the International Head of the EU Competition & Regulatory Department.
- As longstanding head of the firm's international strategy, he was on the firm's strategy committee until it was abolished early last year. He will now re-enter the body – which has been refashioned as a fully-fledged partnership board – as senior partner.
- Kon is married with three daughters and lives in North London.
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