Layton: 'Nothing off the table' under Clifford Chance's new strategic plan
Firm's managing partner outlines details of his vision for the company and moots possible changes to partner pay arrangements
January 20, 2015 at 07:37 AM
4 minute read
"Nothing is off the table," says Clifford Chance (CC) managing partner Matthew Layton of the firm's plans to review its transaction services centre in India with a possible eye on opening an additional base elsewhere.
It's a statement that could apply to almost everything the firm does, as part of a new strategic vision that is setting out to reshape its offering around changing client needs and technological developments.
As part of the plan – the details of which are still in the process of being drawn up – CC's management – including newly-appointed partner for innovation and change Bas Boris Visser and new chief operating officer Caroline Firstbrook – intend to look at virtually every aspect of the firm's service and delivery to see what changes they can make.
Layton says: "Our clients face a number of challenges in their own business: shifting demographics, globalisation; the impact of new technologies for example. In the same way, the legal industry faces an era of change including increasing choice from alternative service providers.
"Here the risk is less about competition and more about the ability to adapt to the use of technology and the willingness to challenge the way legal services are delivered to clients."
The new strategy itself, which aims to position the firm as a "leading global legal adviser now and in the future", is based around identifying and building in key markets and practices as well as innovating to meet changing client needs around cost, quality and service delivery.
"Our position is that we should be willing to challenge every aspect of our client service," says Layton. This will mean learning from other industries and academics and greater collaboration with clients.
In order to ensure buy-in from lawyers and staff, the firm will be looking to measure performance against the new strategy and targets. As part of this the firm's lockstep remuneration structure could be amended, though there are no plans to move to merit-based pay for partners.
"Moving to a merit-based partner compensation structure is not under consideration, concludes Layton. "Our culture is about teamwork and collaboration, which is aligned with lockstep and our global profit pool.
"We already have flexibility in our lockstep and we could consider how it is used or appropriate changes – we need to ensure that lockstep is fit for purpose and supports the strategy and its implementation."
There will likely be changes to CC's operations as well. India, where the firm has a shared services centre in Delhi that now accounts for some 20% of the firm's non-secretarial support staff in addition to housing some legal support staff, is very much up for review by the newly-installed global head of innovation and business change Bas Boris Visser, with the opening of an additional centre in another region likely to be explored.
"Our team in India is delivering significant benefits as an integrated part of our service to many of our clients," comments Layton. "We see potential for expansion of our team in India but if we conclude that we need to expand our transaction services capabilities into additional locations , we will pursue those opportunities."
As part of the move to more flexible working styles the firm will also look to team up with third party providers such as outsourcers. Layton explains: "We don't need to do everything ourselves if there are benefits for our clients in collaborating with others."
CC's move comes as a host of UK and US law firms have opened their own support offerings in recent years. In contrast to CC, most have opted against far-flung locations such as India in preference of near-shoring ventures in places such as Belfast, Glasgow and Birmingham. Most recently Latham & Watkins announced plans to open a support office in Manchester.
Under its new strategy CC will continue its focus on established financial markets such as the US, Europe and Asia, with new office launches most likely to occur within Latin America and Africa.
The US, where magic circle rival Freshfields recently bucked UK-firm tradition with a spate of partner hires but where CC remains best known for its unsuccessful merger with Rogers & Wells, is earmarked for growth.
"It's obviously very important," says Layton of the US. "It's the biggest legal market in the world. We're happy with the development of our practice over recent years but we need to and are committed to continued growth.
"There are no specific revenue targets yet but we are working to finalise our detailed implementation plan."
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