A life in politics – the tricky art for law firm leaders of governing the ungovernable

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A life in politics – the tricky art for law firm leaders of governing the ungovernable

Laura Empson reflects on the confidence trick required of successful law firm leaders

Leaders, by definition, must have followers. This statement is axiomatic. But among lawyers it is not nearly as simple as that. In firms filled with highly-educated, independent thinkers, who do not like being told what to do, finding people who think of themselves as followers is not easy. And finding people who are happy to put themselves forward as leaders can be even harder. Continue reading “A life in politics – the tricky art for law firm leaders of governing the ungovernable”

Any conversation is potentially significant – the emerging skills that will equip the best lawyers of the future

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Any conversation is potentially significant – the emerging skills that will equip the best lawyers of the future

David Morley reflects on the impact of communication in professional services and opportunities for lawyers to improve

My guess is that a law firm partner or general counsel might have the opportunity for around 100 high-value conversations every year in their professional life. That is 100 out of the roughly 10,000 conversations the average adult will have each year. What do I mean by high value? A career-enhancing conversation that transforms a situation or a relationship for the better. It might be with a client, a fellow partner, an associate or someone else. Continue reading “Any conversation is potentially significant – the emerging skills that will equip the best lawyers of the future”

Comment: What’s the point of Baker McKenzie? (And does Paul Rawlinson have an answer?)

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Comment: What’s the point of Baker McKenzie? (And does Paul Rawlinson have an answer?)

Ever wonder what Baker McKenzie is waiting for? The firm once had a crystal clear market position as the only major commercial practice that got anywhere near being truly globalised. And while the sprawling nature of the network meant a 20-year battle to shrug off the franchise tag, Bakers has long achieved polished mid-market credibility in many key jurisdictions. While it was never a threat to the US and London elite, the logic for an emerging giant to handle the mid-stream work for global plcs speaks for itself. Yet Bakers has continually fallen short of its own rhetoric.

Having been an international trailblazer, growth has been pedestrian for a decade now and there is too little evidence of the oft-promised push up the value chain. Continue reading “Comment: What’s the point of Baker McKenzie? (And does Paul Rawlinson have an answer?)”

Letter from… Frankfurt: Where political deadlock is fine for business… but not all lawyers

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Letter from… Frankfurt: Where political deadlock is fine for business… but not all lawyers

What a difference a few hundred miles can make: an election not resulting in a clear majority; a government polling much worse than expected; a leader weakened; and complicated negotiations ahead. In London, such headlines spell uncertainty, prudence, even panic.

While any poll in the UK fills its legal community with trepidation, the Germans reacted to the results of the federal election on 24 September by either stressing that no-one should overestimate the impact of politics on business or by saying it was good news. Says Georg Seyfarth, veteran corporate partner of German blueblood Hengeler Mueller: ‘Building the coalition will be difficult and it will take time. However, eventually we will see a “Jamaica coalition”, which will be good for businesses. The M&A market will not be affected.’ Continue reading “Letter from… Frankfurt: Where political deadlock is fine for business… but not all lawyers”

Comment: The Legal Services Act ten years on – still waiting for the Big Bang

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Comment: The Legal Services Act ten years on – still waiting for the Big Bang

As our October/November issue hits desks, it will be ten years since the Legal Services Act gained Royal Assent, ushering in the most liberal services market in the world by some margin. Given that span of time, and the five years since the most radical elements of the act came into force with the regime for alternative business structures (ABS), it is natural to ask if it has lived up to billing.

There clearly was an impact of sorts, supporting an environment where new business models and fresh thinking were encouraged. That renewed the legal ambitions of the accountants, encouraged the pioneering UK launch of Slater and Gordon, and made Co-op as close as we have got to Tesco law. After a slow initial start there are now over 700 licensed ABSs in England and Wales, representing a significant chunk of the market. Also significant is the messy regulatory fallout and ongoing turf war that it triggered, which has continued with varying degrees of intensity ever since. Continue reading “Comment: The Legal Services Act ten years on – still waiting for the Big Bang”

Deal view: Ashurst strives to reboot M&A brand but deal market is getting tougher

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Deal view: Ashurst strives to reboot M&A brand but deal market is getting tougher

Ashurst’s once-admired M&A reputation has taken a pounding of late. One former partner delivers representative sentiments: ‘Corporate was the jewel in the crown. The firm has changed from what it was six or seven years ago.’ Another notes: ‘It used to be joint number one with Clifford Chance for private equity. The practice faded away as it focused outside London.’

A controversial Australia merger, a soft run of financial performance and the loss in recent years of prominent partners has taken a major toll on its brand as a serious plc deal adviser. Continue reading “Deal view: Ashurst strives to reboot M&A brand but deal market is getting tougher”

Comment: What ails Freshfields? Time is running out for ‘The Last Champions’

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Comment: What ails Freshfields? Time is running out for ‘The Last Champions’

The headline of the last lengthy piece Legal Business carried on Freshfields Bruckhaus Deringer said it all: The Last Champions. While there is no doubt that the Magic Circle has faced huge challenges asserting itself since the banking crisis, for many Freshfields was the member of the club with the best prospect of securing its place in the global elite.

But the City giant will be faring much worse on the profession’s saloon bar test if it keeps generating headlines like this summer, notably the news in July that co-managing partner Chris Pugh was stepping down less than halfway through his term. This surprise announcement came in the same month as financial results showed Freshfields being comprehensively outclassed by its City peers. Freshfields’ revenues have grown by just 17% in five years and the firm has been a fitful performer for nearly a decade now. While the metrics look better in profitability and revenue-per-lawyer terms, Freshfields has certainly not outpaced London rivals even on its core targets. Continue reading “Comment: What ails Freshfields? Time is running out for ‘The Last Champions’”

Comment: The associate pay smoke screen is fooling no-one

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Comment: The associate pay smoke screen is fooling no-one

Associate pay used to be simple. Lockstepped and transparent to the nth degree on both sides of the Atlantic, you knew exactly where you stood and exactly when the legal market was overheating.

There were obvious downsides to such transparency. Back in the late 1990s/2000s boom, a salary war triggered by Palo Alto law firms within weeks translated into huge hikes in New York. Soon enough London followed when SJ Berwin announced 25% pay hikes that spread through the market like wildfire. This was the first age of the online message boards, which further stoked the inflationary pay cycle. Continue reading “Comment: The associate pay smoke screen is fooling no-one”

Guest Post: My kingdom for a horse – your literary introduction to the psychology of pricing

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Guest Post: My kingdom for a horse – your literary introduction to the psychology of pricing

Think, just for a moment, exactly like a client.

You asked me to provide you with a quote for a particular legal service – one that you are relatively unfamiliar with. You have just received a copy of the firm’s terms of engagement and a fee quote that tells you that the work will cost £10,000 and is payable within 28 days of the final bill being issued, which is estimated to be in two months’ time.

Do you have any questions for me?

‘A horse, a horse! My kingdom for a horse!’ Continue reading “Guest Post: My kingdom for a horse – your literary introduction to the psychology of pricing”

Comment: Magic Circle playbooks in Europe are full of contradictions’

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Comment: Magic Circle playbooks in Europe are full of contradictions’

To recap as the UK tiptoes towards banana republic territory in the wake of last month’s inconclusive, prediction-defying general election: City professionals face the prospect of an unsteady government negotiating a logistically-epic exit from the EU with an uncertain agenda against a much larger and better prepared counter-party. That is until the next general election in perhaps the autumn. Continue reading “Comment: Magic Circle playbooks in Europe are full of contradictions’”