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International Edition

Management: Betting on the big four

The big four magic circle firms (Allen & Overy, Clifford Chance, Freshfields Bruckhaus Deringer, Linklaters) have had an incredible run over the past 15 years. All of them achieved the benchmark of extraordinary success for a large law firm - profits per equity partner (PEP) near or over $2m (£1.4m) and gross revenues of around $2bn (£1.4bn). What made their success all the more impressive was that in the early 1990s their standing was less than 'magical' relative to premier US firms. As much as these firms achieved over these last 15 years, the current economic crisis raises real questions about how they will fare in the future.
5 minute read

International Edition

It's automatic, baby

As 2009 ushers in new regulations as part of the Legal Services Act (LSA) 2007 to support multidisciplinary partnerships and firm-based regulations, understandably there is apprehension among some segments of the industry in terms of its implications for law firms. However, regulation is the catalyst for change, which, if dealt with in the right spirit, is usually for the better. In the current economic climate, the LSA is a positive development for the UK's legal sector. For instance, it will allow law firms to receive inward investment from other sources including national and international businesses.
5 minute read

International Edition

Managing a downfall

The role of every managing partner changes as his firm grows and evolves, but his focus is always on building a sustainable enterprise - except when the firm's future clearly becomes unsustainable. The notion of a firm's failure can be so disturbing that it escapes planning until the 11th hour.As is the case with all unanticipated events, though, the conflicting interests that arise in a firm's failure are best managed with careful forethought.In every firm failure there is a window - sometimes called the 'death spiral' - between the moment when a law firm leader realises that the firm will likely not survive and the moment the firm votes to dissolve.
7 minute read

International Edition

The new bargain hunters

FTSE 100 companies are telling us they aren't looking to reduce the number of firms on their panel, but they will be spending less and driving a harder bargain. As work becomes scarce and firms ready their scalpels to slash marketing and business development (BD) budgets, the key is to cut in a way that will help the patient recover more quickly, not threaten recovery
5 minute read

International Edition

Management: Recruitment rewards

Sourcing high quality candidates has never been more important. Whatever its size, if a firm cannot attract the best talent then its ability to compete will be severely compromised. In an effort to ensure its hiring processes are as efficient as possible, Freshfields Bruckhaus Deringer appointed Alexander Mann Solutions (AMS) to implement changes that would reduce costs and strengthen the business. Freshfields' decision to seek a recruitment process outsourcing partner followed the firm's 2007 restructuring programme. These changes required rationalisation of recruitment costs, particularly for business services staff, and for greater efficiency throughout the process.
4 minute read

International Edition

Management: Heads buried in the sand

You have probably been to one of those ghastly, mind-numbing awaydays where the facilitator asks you to identify the song that most aptly describes your firm. Gritting your teeth, while typing on your BlackBerry and avoiding eye contact, you mutter "My Way", "We Are The Champions", or - in an attempt to second-guess what that oh-so-junior-and-not-even-a-lawyer facilitator is wanting you to say - "With A Little Help From My Friends". But have you ever thought of "Walk On By"? Let me explain.Imagine that one quiet evening, you pass a closed office door. You hear two voices you recognise. It is quite clear that Sam is bawling out Alex, in a way that is not only rude, but highly aggressive. What do you do?It probably depends on who 'you' are, and indeed who 'Sam' and 'Alex' are. Or rather not so much on who you (and they) are, but on what you (and they) are.
4 minute read

International Edition

Filing error

The practise of law around the world is at a tipping point, driven by the technology revolution. While US legal teams appear to be more concerned about the reality of growing volumes of electronically stored information (ESI), the UK's primary concern appears to be the lack of training in legal trends.
6 minute read

International Edition

India - still an outsourcing haven?

India's outsourcing sector comprises both business process and IT outsourcing, and it has been growing at an annual rate of about 37% over the last few years. Growth has jumped from approximately $3.1bn (£2.17bn) in 2004 to nearly $11bn (£7.7bn) in 2008. Yet, despite such a strong market to protect, a senior Indian special forces source described the response to the Mumbai terrorist attack as having "far too many command centres, with each one trying to best guess the other, [leading] to confusion and delayed operations", adding: "there appears to have been a lack of detailed, precise planning".
5 minute read

International Edition

Woman's world

While people will be unanimous in their congratulation of an older single mother, Rachida Data, the French Justice Minister, on the birth of a daughter, women may find themselves reluctant to rejoice in the example she has set in returning to work just five days after the birth by caesarean section. As the world economic downturn continues to deepen, the headlines did not highlight the dedication of a woman to work and duty in troubled times, nor even the reason that lay behind her decision to attend the meeting called by her boss, President Nicholas Sarkozy. Instead, they focused on how attractive she looked and how well she walked in her high heels. This says it all that even in such extraordinary times the focus is not on the vital role that high-performing and high ability women can play, but on how women can best detract from their inadequacies. When so many women are choosing law as a career, firms concerned about utilisation need to start at the most obvious place, and look at what they are doing to nurture women - who make up nearly half of their talent - towards success. Like their corporate commercial counterparts (who are addressing the debate through mentoring programmes and leadership coaching courses) firms need to grasp the nettle and take the first small step towards grooming the next generation of legal leaders, as well as signalling to the markets that gender is no longer an issue.
5 minute read

International Edition

Management: Neutral territory

Businesses are increasingly looking at reducing their carbon emissions. The reasons for this are as varied as the companies implementing the changes. Cost reduction will be part of the picture - especially as the recession bites - but so too will differentiation, reputation management and, increasingly, supply chain pressure. The key drivers for law firms to 'take on' climate change is a mix of commercial and moral imperative.
7 minute read

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