Different strokes – firms racing to go global risk losing their grasp on their USP
In a world where globalisation and consolidation are increasingly the buzzwords of choice, it takes a brave man to stand up and be different.
May 15, 2014 at 07:03 PM
3 minute read
In a world where globalisation and consolidation are increasingly the buzzwords of choice, it takes a brave man to stand up and be different.
Just look at the UK top 50 rankings; a few years ago it was relatively easy to categorise firms and divide them into sub-groups: magic circle, City, national etc. But with even historically UK-focused firms such as Addleshaw Goddard opening overseas, no one wants to be labelled as anything other than international any more. Except, of course, for the ever-increasing number of firms desperate to be seen as global.
Against this backdrop, the likes of Macfarlanes, Travers Smith and Slaughter and May stick out like sore thumbs. Even within this group, Macfarlanes stands alone as being without a single overseas office or any current intention of merging to gain some. But, as this week's interview with senior partner Charles Martin demonstrates, the firm makes no apology for being different.
Like the other firms named above, it has opted to embrace its individuality rather than lose what sets it apart from the herd. But this is not a strategy without risk. By definition, choosing not to be all things to all people is likely to rule it out of a good deal of opportunities – a strategy that may not appeal in a market where work is in short supply. Similarly, its stance and distinct partnership culture will not be the right fit for all potential recruits.
But at least Macfarlanes' position is clear, and for some clients it is more likely to be an obvious first choice.
The same is less likely to be true for the majority of firms attempting – with varying degrees of success – to offer broadly the same 'international' service as any number of their rivals. Here, unless they are genuinely the biggest or the cheapest, it is hard to see what will differentiate them in an increasingly competitive market. After all, while activity levels may have picked up, after a few years of getting more for less from their advisers, clients are unlikely to change their stance now.
In the battle to be big, firms have been too willing to throw away their unique selling points, and it is not just work that is likely to be lost – it is also talent. As the Legal Week Intelligence Law Student Report found, with growing numbers of students opting to pursue careers outside the law, a little differentiation will help firms attract the best of the rest in a very crowded recruitment market.
- Click here to watch Charles Martin and other leaders of independent law firms comment on the current state of their home markets.
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