denotes premium content | Oct 16 2008 Managing Partner archive
Volume 6 Issue 1
What a month it has been for Addleshaw Booth & Co. The long-awaited announcement of its merger with Theodore Goddard has finally been confirmed and the new firm, Addleshaw Goddard, will commence trading as of 1 May 2003. On top of that, the firm’s marketing team has won two awards for its sponsorship of the Commonwealth Games. Few would argue with the fact that the merger is an acquisition of Theodore Goddards, a firm that has spent many months searching for a merger partner. In this context, the awards are the icing on the cake, a notable addition to a very successful expansion for Addleshaws.
Merger negotiations are delicate at the best of times but the Addleshaw Goddard agreement was particularly difficult for the partners in Theodores, who were well aware of the dominance of their merger partner. The firms’ decision to merge without locking partners into the combined firm was seen as a way to cull partners that would no longer be needed after the merger – time will tell whether those fears will come home to roost.
The decision to merge is rarely an easy one and for every successful merger, there are many more failures, either in the negotiation stage or further down the line. Even if an agreement is reached, the partners are only at the beginning of a long process to combine cultures and practices without undermining the inherent strengths of either firm.
Despite the risks, merger continues to be an attractive option for many firms looking to expand geographically or practice wise. It offers the opportunity to drive profits and broaden each firm’s business base by combining expertise, knowledge and clients. For those who get it right, the rewards are substantial. Berwin Leighton Paisner is a recognised merger success story and, in this issue, Neville Eisenberg, the managing partner, descibes its strategy in the lead up to and following the merger (page 7). In particular, he emphasises the organisational commitment that is needed across firms to ensure short and long-term success.
The current climate, however, is one in which some firms are looking to other innovative ways of combining resources and expertise without incurring the dangers of a full merger. Allard Metzelaar, managing partner of Stibbe, Amsterdam, believes that alliances are a real way forward, enabling firms to deliver an enhanced international service without compromising the nature and identity of the firm they like. His strategic perspective on the alliance of Stibbe, Herbert Smith and Gleiss Lutz (page 10) leaves little doubt that such alliances will gain in popularity over the coming months.
In this issue, we also have a personal profile of Ralph Baxter, CEO and chairman of Orrick, Herrington & Sutcliffe, LLP. He is now into his fifth term at the helm of this rapidly expanding international firm and his thoughts and experiences give an interesting insight into effective law firm leadership.
I hope you enjoy this issue and please do contact me at: cpoynton@ark-group.com if you have any comments or ideas for future issues.
Caroline Poynton
Editor
Features
Faint heart never won... Successfully navigating the path to merger
Law firm mergers continue to dominate the legal press as firms strive to expand their service capabilities. For every successful merger, however, there are many more failures, either in the negotiation stage or more fatally, further down the line. Neville Eisenberg, managing partner at Berwin Leighton Paisner, assesses the challenges from the standpoint of the successful merger of Berwin Leighton and Paisner & Co.
Gleiss Lutz - Herbert Smith - Stibbe: A step beyond “best friends”
In July 2000, Herbert Smith and Gleiss Lutz Hootz Hirsch (as the firm was then called) entered into an alliance. Stibbe joined on 1 January 2002 to make a tripartite alliance between the three firms. Allard Metzelaar, managing partner at Stibbe, describes the background and formation of the alliance and the impact it will have on future service delivery.
Rolling out a law firm merger: Getting attention, supporting integration, reaching clients
Negotiating and agreeing a merger is only the start of a long process that should ultimately provide a better client service across a deeper and broader reach. Communicating the benefits of that process to existing and potential clients, however, can be challenging. Richard Levick, president, and Elizabeth Lampert, executive vice president, of Levick Strategic Communications examine the ways to effectively spread a firm’s merger message.
Legal technology: Opportunities, implementation, strategy
Law firms have gained considerable experience in their use of technology over the past few years and many are successfully using their software to impact core working practices. It is, therefore, significant when a firm stands out in this competitive field for its use of IT. After a phenomenal year for its IT initiative in 2002, Wragge & Co appears to be just such a firm. The firm won awards for the best use of IT (Legal IT awards) and IT team of the year (LOTIES), beating stiff competition to sweep the boards in both categories. Caroline Poynton talks to Derek Southall, head of strategic development, about the secrets to their success.
Technology Q&A: Derek Southall, head of strategic development, Wragge & Co
Making sense of CRM: Avoiding the perils and pitfalls to find the promised land
Client relationship management is an essential aspect of legal service delivery and the majority of firms have bought CRM software to maximise the operational efficiencies of their client accounts. John Gurnett, a partner at Deloitte and Touche, gives a run down on the applications and core processes involved in CRM but also explains why the technology is only half the story.
People and places:
Find out who is moving when and where...
People and culture
The current legal landscape is uncertain and the coping strategies, as firms wait for better times, are varied. We have witnessed cut backs across some of the most successful firms of recent years and de-equitisations have sadly become a feature of an enduring economic downturn. It is refreshing, therefore, to see some firms making the most of the market conditions to actively expand, whether that be through merger or greenfield expansion. In this month’s People and Culture section, Caroline Poynton talks to Ralph Baxter about his career progression and leadership of Orrick, Herrington & Sutcliffe, LLP, a firm making its mark with rapid European expansion in London, Paris and Milan.
A man for all seasons
In January 2003, Ralph H. Baxter, Jr. was voted in for his 5th term as chairman and CEO of Orrick, Herrington and Sutcliffe, LLP. In the thirteen years of his tenure, the firm has doubled in size, quintupled in revenues and expanded from a domestic to international practice. As success often breeds success or at least the hope of it, Baxter is now more enthusiastic than ever to extend the firm’s growing international presence, despite the prevailing economic uncertainty. Caroline Poynton talks to the man leading the pack.
Cross-selling: Why, how and who?
Partnerships continue to retain an individualism born of years of tradition. Even sharing information and knowledge can be difficult in such an environment, and anything sounding like sales comprises a whole new ball game, often fiercely resisted by the firm’s partners. Ian Reaves, partner in charge of client development at Hammonds, explains why lawyers should stop worrying and learn to love their latent cross-selling talents.
Achieving a client-oriented culture: Creating a climate for performance
Such areas as financial management are essential components of the profitable and forward-looking firm. For long-term success, however, firms need to be looking further inward to their culture and how committed their people are to the firm’s core values. In this extract from Heather Stewart’s recently published book: Excellent Client Service, the importance of shared beliefs and attitudes is explained.
Regulars
60-second interview: A question of leadership
Earlier in the year, Caroline Armitage, partner and head of the commercial division at ASB Law, attended a week’s residential course focused on leadership skills. In this 60-second interview, Caroline Poynton finds out why.
