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.

Ralph Baxter has an easy-going, softly spoken manner that seems to belie the stereotypical image of a global CEO. You quickly sense, however, that this is really the kind of calm self-assurance born of past success and the obvious trust placed in him by colleagues and employees across the globe. After all, they have just elected him into the chairman’s seat for the 5th time, giving him a fairly clear indication that he’s been doing something fundamentally right for the past 13 years.

In a world of change, he says that his vision for the firm has remained constant, that is: “To lead the firm, in any way I can, to being, in fact and recognition, one of the greatest law firms in the world.” It sounds wonderful, but probably says as much about Baxter’s drive and ambition as the past and future progress of the firm.

A childhood interest in law, spurred on by fictional representations of the drama of the courtroom, convinced Baxter to take up law and specialise in employment, an area that would indulge his fascination with advocacy and his desire to handle cases with a significant human interest element. He joined Orrick in 1974 and was made partner in 1980 but it was during his time as an associate that he developed the employment law department. By the time he became partner, “we recognised that we had developed an employment law department and I was made chairman of it.” He says this in such a matter-of-fact way that it would be easy to miss the real impact he must have had on the firm at such an early stage in his career. From prestigious beginnings, it was not to be long before he joined the board of directors (mid 80s) and became chairman in 1990.

Dramatic career progression is one thing but where Baxter really pulls away from the crowd is in realising much of his ambitious vision for the firm. Since becoming chairman, the firm has more than doubled in size, quintupled in revenues and grown from a domestic to a global practice. Apart from expansion in the US, offices have opened in London (1998), Paris (November 2002) and most recently, Milan (April 2003). Baxter has further plans to establish more of a European and Asian presence, as well as expand and deepen the firm’s share in the US market. All this is set against the uncertainty of the current economy where firms are all the quicker to batten down the hatches and wait for fairer skies.

One of the reasons behind Baxter’s clear success must be his sensitivity to market conditions – knowing when to wait and when to grab an opportunity to increase market share. In 1990, Baxter says that: “Law firms could, to a great extent, still be regional in their focus and enjoy challenging engagements from clients competing just in their regions.” At that time, he was looking to expand in New York and was hoping to establish the firm’s presence outside the US, but since then, the pace of change has accelerated so much that the firm’s vision has become more specific and ambitious.

The risks of expanding are significant and we have all witnessed in recent years the mergers and consequently demergers of attempted market consolidation. Equally, firms that have taken advantage of a boom period in a particular market have often found their fingers burnt when the economic going gets tough.

Baxter’s response to such risks has been threefold. First, he has strived to create balance across practices and geography. With a fairly even split across finance, corporate and litigation, he says that they have been able to serve clients broadly and deeply while weathering the different economic climates.

Similarly in geographical terms, Baxter says that they have worked hard to balance their teams with roughly half their US lawyers in the east and the other half on the west coast. “As we proceed into Europe and Asia, we will try to keep the number of lawyers in harmony with the demands in the markets.”

Second, the firm’s timing has been exceptional. Taking the economic downturn as the starting point, Baxter has looked to expand the firm’s market share in areas where they currently have none, the logic being to negate risk by entering the market at its lowest ebb.

The third strategy has been choosing the right people, a factor linking timing with balance to best ensure success. Working with firms and lawyers across the globe that share Orrick’s values and that are proven market participants has been an essential component of the firm’s successful expansion. As Baxter says: “Our team in Paris is well regarded in the market and it will do just fine in a challenging time. Unless we can work with similar teams elsewhere, we will just wait.”

This belief in people power, so to speak, is characteristic of a man whose central belief lies in the firm’s values and culture. When Baxter talks about the elements critical to achieving the firm’s vision, he says how important culture is, to recognise what it is and how to protect and strengthen it. Throughout our conversation, there is a keen sense that all other roads lead to this core, this is the central tenet of Orrick’s success whether that is on a regional, international or future global scale.

Perhaps this force of belief goes back once again to his roots. In building his employment practice, Baxter discovered not only a love of the courtroom, but also, advising clients and helping them to make their decisions. A people-oriented person who quickly found himself at the firm’s helm, he has combined his early interest in advising and helping clients with the duties of effective leadership.

He describes the typical qualities of the good leader: the need to have a vision, to be optimistic and to inspire confidence, but the aspect that seems to really reflect his personality and success must lie in his comment: “The leader must connect to the other people in the organisation – that means listening, communicating and it means exhibiting genuine respect and affection for its people.” It is indicative of his desire to connect with his people that throughout our conversation, he rarely says “I” when he can say “we”. Even when he talks about the high points of his career, he says that it has been to: “Serve as the chairman of the firm and it has been a privilege to have done that for as long as the partners have entrusted me with leadership.”

Such a humble and magnanimous approach to the firm’s people and his role seems a little bit too good to be true and you can’t help but wonder where the chink in the armour lies. In discussing the mistakes he’s made during his career, he says that the firm should have entered Silicon Valley earlier but as he says that they have done wonderfully since, it still leaves you none the wiser as to that chink. And of course, you keep coming back to that phenomenal success and the fact that partners just keep voting Baxter in. Perhaps you have to accept that there isn’t a chink to be found.

If there is one thing he wants to be remembered for, it is that he led a truly value-based organisation. It seems like a humble ambition compared to his vision for the firm as a whole and it seems oddly out of place for a man whose personality is so closely entwined with the fortunes of the firm. Baxter would be too modest to agree, but if Orrick is to be one of the greatest law firms in the world, then it’s Baxter’s fortune to be remembered as one of its greatest leaders.

Ralph Baxter is chairman and CEO of Orrick, Herrington & Sutcliffe, LLP. He can be contacted at: ralphbaxter@orrick.com.