Editor's foreword

This issue of Managing Partner is truly international, reflecting the rapid expansion of law firms across the globe. Where once there would have been marked differences between law firms operating in different jurisdictions, the growth of business across the international marketplace has led to a consequent expansion in the legal profession, and there are now many similarities in the challenges facing law firms in every part of the world.

Many firms have merged in recent years in an attempt to gain geographic breadth or critical mass. Some of those combinations have been well thought out, not only in business terms but also in terms of cultural synergies – the result is a smooth and efficient post-merger integration and rapid growth in available resource and profit. In the rush to compete on a national or international stage, however, others will make rash decisions, merging with firms that have a poor cultural or business fit. Not only do those firms risk internal disruption, including the loss of key partners/teams, but also long-term damage to the firm’s reputation through diminished levels of client service.

The significant risks of merger, though, seem to be little putting off firms and the merger market is as active as ever in the legal profession. On a national stage, the recent merger of Cooley Goodward and Kronish Lieb, demonstrates the allure of a merger that will provide ‘coast-to-coast’ capabilities; the combined firm now has offices in New York, San Francisco and Washington D.C, as well as in the country’s technology markets of Palo Alto and San Diego, Calif., Reston, Va,, and Broomfield, Colo.

In the international arena, the forthcoming merger of Reed Smith with Richards Butler is further indication of the potential of merger to provide a quick return on global expansion ambitions. And, with Richards Butler having just opened a new office in Dubai (see Middle East feature, page 21), the opportunities seem to be only just beginning for the combined operation, in the US, Europe and beyond.

For smaller firms still considering the best growth strategies, the cover story in this issue provides some guidance on a variety of routes to expansion, including recruitment strategies or team relocation that can provide a firm with access to new markets without the far weightier risks of merger.

This issue also includes a couple of features focusing on outsourcing in the legal profession. While not a new concept to US firms, many firms can still be overly preoccupied with lucrative expansion goals, without considering the possible benefits of making internal cost-efficiencies. Outsourcing across a broad range of functions could make a fundamental difference to the bottom line, though. And, as Ron Friedman argues in his outsourcing feature (page 30), the possibilities for outsourcing have so far been largely untapped by most US firms.

As ever, I am keen to hear all your comments and feedback, whether about this issue or any other aspect of Managing Partner magazine, so please feel free to contact me at cpoynton@ark-group.com.

In the meantime, I hope you enjoy this issue!

Caroline Poynton
Editor

Features

The sky’s the limit: Growth strategies for the smaller practice Free
At some point, most law firms will face a major decision about growth, none more difficult than when it comes to moving from a regional to national firm. The potential business opportunities of such expansion are obvious, but the risks are also inevitably high.

Holding attorneys accountable for building a practice Free
Law firms rely on their lawyers for maintaining and building business but are generally poor at making lawyers accountable for their performance. A proper performance framework and a proactive approach, however, could make all the difference, not only in encouraging the right internal behaviors, but also in building business profit and growth.

New avenues for cost management Free
Outsourcing among US firms has become increasingly common, although few have yet considered the potential for outsourcing secretarial and word-processing functions. By Ron Friedman, Prism Consulting

Opening up to outsourcing Free
Law firms once kept their distance from outsourcing functions, often dismissing the idea as both risky and ineffective. But as this examination of US and UK firms shows, attitudes are fast changing across the profession. By Tina Lofthouse.

All points East Free
The finance world’s relationship with the Middle East has changed dramatically over the past ten years. With booming property sectors, a new stock exchange and increasing interest in private-equity funds, there are also even more opportunities for law firms in the region.

Role of a law firm general counsel Free
In recent times, some law firms have appointed a dedicated general counsel to head up risk management across the business. Edward J. Zulkey, general counsel at Baker & McKenzie International, explains the strategic rationale and organizational requirements of such a move.

Regulars

Thought leader Free
By 1972, Reed Smith had 90 lawyers, predominantly based in Pittsburgh. Before geographic expansion, came the need to diversify the workforce, as the immigrant population in the US increased. Ethnic minority and female lawyers were hired, new practice groups were created in response to client demands and a wider range of services was being sold to clients.