As part of our Global 100 report, law firm leaders give their assessment on how their firms are performing.
Self-efficiency
‘For us, the last year has been a continuation of a strategy we launched five or six years ago and was refreshed two years ago to provide some differentiation. There’s no doubt the market is better now than then and we’ve had the two mergers during that time. The intense pressure of cost efficiency on the industry has really benefited the firm generally by forcing us to look at the impact revisiting infrastructure can have on a law firm. During the last five years, the firm has saved €100m through its efficiency drive.’
Duncan Weston, managing partner, CMS Cameron McKenna
Cross-selling
‘There was low single-digit growth in Australia, with strong growth in Hong Kong and China. We increased revenue by 9% in Europe and the Middle East year-on-year. Cross-border work referred within the firm for the calendar year 2014, compared to 2013, was up 133%, with over 200 joint and referred matters into Europe.’
Stuart Fuller, global managing partner, King & Wood Mallesons
Asia opportunity
‘We like where we are, but I’m always interested in opportunity. In Hong Kong we’ve doubled the size of our office and our aim is to distinguish ourselves in the market through our funds practice, energy and international trade expertise on the ground. If we do funds really well around the globe, then doing it in Asia is a smart part of that strategy. With funds clients looking more heavily at Asia, we want to make sure we are ready to do that work.’
Kim Koopersmith, chair, Akin Gump Strauss Hauer & Feld
Holding together
‘We just had our most profitable year in 2014 and our year-to-date performance is strong. Our partners understand the legal marketplace – that the ebb and flow of laterals is a fact of life for most firms of our size. Our rock-solid balance sheet, even as we invested in new growth opportunities, is a real asset in terms of how partners view our prospects. It is a powerful recruiting tool as well. Our focus is on long-term stability; our platform provides great stability and diversification, and has allowed us to grow our partnership on a net basis, despite this year’s departures.’
Jim Rishwain, chair, Pillsbury Winthrop Shaw Pittman
Deal machine
Thomas Fitzgerald, managing partner, Winston & Strawn
Best use of time
‘The demand by the hour for our services was greater than in prior years and that’s been with the partners, with utilisation levels moving back to pre-recession levels, which had not been true in previous years. Utilisation per partner went up by about 30 hours a partner. It doesn’t sound like a lot, but when you multiply that by the number of partners in the firm, you get a big figure. It’s what that represents, which is greater demand by the market of high-value practices in a market that has been flat. When you factor in inflation, the market has been slightly down, so the only way you get additional utilisation is through taking market share.’
Robert Hays, chairman, King & Spalding
Bonus time
‘There was a pretty significant cost increase for US firms last year, in part because of the higher bonus rounds. Someone sets the rate and people follow. That was a steep increase after years of relative stability and it added to the cost base. A 3% revenue increase may not sound a lot, but it’s around $20m, so it’s pretty satisfying.’
Richard Ward, London co-managing partner, Debevoise & Plimpton
Focus shift
‘It’s been a flip-around year. Our partners have got a renewed confidence from bringing post-merger integration to a close and we’ve gone from concentrating on ourselves to a relentless focus on our clients. It’s been a very disputes-led story for the last few years, but last year saw the resurgence of the transactional practices. We got our teeth into some huge deals.’
Mark Rigotti, co-chief executive, Herbert Smith Freehills
Don’t sit still
‘The partners at Latham 20 years ago worked hard to make Latham relevant now – whether it was opening new offices or growing practices – and our current partners are doing the same thing for the next generation. Taking risks is what defines Latham. The firms that make me pause are those that think they can maintain the status quo. Those perceived as less prestigious today than yesterday will fall behind. Having an unfinished agenda defines success at a professional services firm.’
Bill Voge, chair, Latham & Watkins