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![For many law firms 2007–08 has been another good year in terms of revenue growth and
this seems to justify the unabated optimism of law firm managing partners. But there is a
catch to continued good conditions, warns James Grant in his before‐mentioned opinion
piece. “People get carried away, prices go too high and economic resources go where they
shouldn’t.” Let’s hope that the legal industry is the proverbial exception to the rule.
David Fagan – Clayton Utz
Clayton Utz is set to post revenue growth of 9% this financial year, an increase to A$470m
and another strong result after last year’s 11% increase. “It’s a year of two halves,” says
David Fagan, chief executive partner of Clayton Utz. “Up to December, it was a very buoyant
corporate and banking market, while beyond December it was a very buoyant litigation
market.”
It’s clear that the economic climate has changed since December, but Fagan says it’s not all
down to the liquidity crisis stemming from the subprime mortgage industry collapse in the
US. “The subprime crisis, the packing up mortgages with very problematic credit quality,
we’ve not had that here. In the US one in every five houses has had a foreclosure notice, in
Australia that’s 0.2%. We’ve not had that asset problem and, correspondingly, I don’t think
we’re going to have the litigation they had over subprime issues.”
Fagan does acknowledge that some of the fallout of the subprime crisis has trickled into the
Australian market and he says Clayton Utz is advising Lehman Brothers on products that the
financial services company sold into the Australian market. But the large corporate collapses
that Australia has seen in recent months are not tied to the US‐originated crisis, he argues.
“The work that is related to Allco, Centro and MFS, that is more about their business models
than the credit crunch.”
The slowdown in the Australian market is a result of the culmination of factors, including a
rising oil price, record low consumer confidence and fewer corporate sales, and there is no
telling when the climate will improve. The firm is, therefore, budgeting for more subdued
growth next year, says Fagan. “There is uncertainty in what the next 12 months will bring; a
degree of caution is probably sensible.”
John Denton – Corrs Chambers Westgarth
Corrs Chambers Westgarth’s revenues have increased by 3.4% to A$240m in the financial
year 2007/08. This is not quite as high an increase as in the previous years. Last year the firm
reported a growth of 11.5%, while over the last three years the firm’s total revenues grew by
25%. For next financial year, the firm is looking at single digit growth – around 5 – 6%.
Chief executive officer John Denton of Corrs says the slowdown in revenue growth is caused
by the firm’s efforts to develop its industry groups. “Partly, it is us doing things,” he says.
“We are very committed to our 2010 strategy and that does take up a lot of capacity. We’re
not skinnying the firm up here, we are investing very heavily in L&D [learning &
development] in particular, and in information systems.”
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![“We could suck in more revenue if we wanted to, and I do notice that used to be a focus of
some people in the market place, but what’s the point if you’re not generating additional
return from that? All you’re doing is adding revenue. We’re not competing on scale; we’re
large enough to do the big deals.”
Denton discards the idea that it’s the influence of the credit crunch. “What has been
surprising for us is how strong corporate advisory has actually been this year. We’ve closed
some pretty amazing deals; we’ve done five of the top 10 deals that have been closed. So
the areas that we are seen by some of our competitors as being softer, in fact, haven’t been
soft for us.”
Guy Templeton – Minter Ellison
Minter Ellison is the largest law firm in Australia by total lawyer numbers, but this financial
year the firm lost its place in the top three largest law firms by revenue to Clayton Utz.
Minters came in at fourth place, reporting A$460m in revenues, while its competitor posted
A$470 in revenues.
Despite having to digest a drop on the size‐by‐revenue ladder, Minters still managed to grow
revenues by 5.3%. CEO Guy Templeton says that the insolvency and restructuring practice
has been the main driver of growth. “We’ve maintained a full‐sized insolvency and
restructuring team throughout the boom times. That is now paying off,” he says. “Our
restructuring and workout team is firing in all cylinders; it’s one of our strongest areas.”
The firm is advising ANZ on the legal issues surrounding the collapse of stockbroker Opes
Prime and the bank’s exposure to Centro. It also continues to act for PwC as the liquidator of
seven of the mezzanine finance companies within the Westpoint Group.
Templeton says that inbound work from Asia has been unaffected by the global credit
crunch and he expects this to be one of the main drivers for the next financial year,
particularly for the firm’s energy and resources practice.
He also predicts a strong year for the firm’s infrastructure practice, driven by major projects
undertaken by state governments. For example, Minters advises the Port of Melbourne
Corporation on the channel deepening project. “[These projects are] starting to flow through
now. The pipeline for the whole of Australia has been full for some time and will remain so
for some time to come.”
Mark Leibler – Arnold Bloch Leibler
One of the most remarkable deals of last year was undoubtedly the public listing of plaintiff
firm Slater & Gordon. Not only did the IPO provide some challenging legal and regulatory
issues, but it also sparked a debated on the ethical merit of the adventure. Some critics said
the listing of a law firm would dilute the responsibility lawyers feel towards the court and
their clients.
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![Arnold Bloch Leibler acted for the adventures law firm on the IPO and senior partner Mark
Leibler says he looks back on the transaction as one of the firm’s highlights of last year.
‘slater & Gordon probably has to stand out simply because of its uniqueness,” says Leibler
“This was the first time that a law firm – forgetting about Australia, but internationally – has
gone public. It raised a whole lot of interesting and fascinating issues, which had to be
considered, for the first time […], but we overcame them all and as you can see Slater &
Gordon are flourishing.”
But the successful listing hasn’t tempted the firm to go public themselves. “We have a
different model,” he says. “We don’t rule out anything, but at this moment I don’t see us
seriously heading in that direction.”
Arnold Bloch Leibler realised a healthy revenue growth of 7.6% in the financial year 2007/08.
Leibler expects to further grow the Sydney office of the firm. “There is a huge potential for
growth there,” he says. “We think there is going to be a lot more commercial litigation;
some things have gone wrong in the credit crisis.”
The expansion will depend largely on the ability to find the right people. “Because of the
economic downturn there will be a bit of a shakeout, but to get the right quality people is
difficult.”
Robert Milliner – Mallesons Stephen Jaques
Like the year before, Mallesons Stephen Jaques dominates the revenue table in the financial
year 2007/08. And what’s more, the firm has broken through the half a billion dollar barrier,
reporting a total revenue growth of 10.7% to A$545m.
It took the firm 175 years to get to this size, and so ALB magazine asked the firm’s CEO,
Robert Milliner, how long it will take before it reaches a revenue figure of a billion dollars?
“That’s a quantum jump,” says Milliner. “For the Australian firms, a billion dollars would not
be a sensible aspiration. It’s a very competitive market here; there are a lot of good firms. I
doubt that any Australian firm would think that doubling its size in Australia would make
sense.”
But Milliner does aim high when talking about expansion in Asia. The firm generates roughly
10% of its revenues in the Asian region, particularly in China. Milliner says that although he
expects to grow moderately in Australia, the real growth story is in Asia. He wants to build
up the Beijing and Shanghai offices to the same size of the Hong Kong office, which has over
70 lawyers.
Milliner illustrates the importance of China for the Australian economy by a quote of Ian
MacFarlane, the former Governor of the Reserve Bank, who said that Australia’s economy is
simply a factor of the global economy. “That was true of the early 2000s,” says Milliner.
“Interestingly, the resources dependence of China has made it more the case that Australia’s
economy is a factor of China’s economy.”
Although some have doubted the profitability of the Asian adventure, Milliner waves away
this criticism. “This used to be the classic rhetoric of the early 2000s: you don’t want to
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![general counsel. For him the transition was less of a clearly defined goal and more a natural
progression.
"I think it was a natural next step for me. When I got into
law I was very passionate about being a lawyer and that
passion lasted a long time ‐ about 30 years.
"After a couple of years at Telstra, I attended INSEAD in Paris
where I did a three‐month international executive program,
and that got me very interested in the business side. I then
David Krasnostein, head of moved to NAB as corporate counsel, and although that was
MLC Private Equity a pure legal role, I kept an interest in the commercial side of
things." he said.
“It took me some years to circle back again and decide that I actually wanted to run a
business, but [my move to management] was a combination of a general desire to run a
business and a feeling I had practiced law long enough. Thirty years was a bit of a milestone
and I thought I'd probably done everything I wanted to do as a lawyer. I was interested in
doing something that would be more stimulating for me. Those two things came together at
the same time and it was just the right time to take the next step."
Some lawyers make the move to management because of an express desire for a change of
environment. Gai McGrath, general manager of customer service at BT Financial Group
(BTFG ‐ the wealth management division of Westpac), is a case in point. "When I was
approached to join BTFG in 2003, one of the key attractions of the role as general manager,
risk solutions was the opportunity to take on a broader risk management role and join a
larger organisation," she said.
"The opportunity to move completely into broader general management came in early 2006
when I was appointed head of customer service delivery for BT's Customer Solutions
business. Then, when Westpac and St George merged in 2008, a new position of general
manager, customer service was created for the merged wealth business and I was fortunate
to be appointed. I now lead over 1,000 people across seven different locations in Australia
who service over three million interactions with our customers each year ranging from
contact centre to complex unit pricing of our funds."
Like Krasnostein, the opportunity to embark on a new challenge and expand on the skills she
had learnt as a lawyer was also a major incentive for McGrath to move to management.
"I felt I had achieved all that I wanted to achieve as an in‐house lawyer and risk management
professional... I wanted new challenges in areas that I had no relevant expertise," she said.
Motivations aside, the decision to switch out of a lucrative, stable and engaging position
within the legal profession itself into the corporate cut‐and‐thrust is a momentous one for
any lawyer. It should, therefore, not be taken lightly or without due consideration of all the
repercussions.
Knowing when to jump is key, as is analysing exactly where one is in terms of career
progression. No matter how well suited to a management position a lawyer may be, there
are risks involved.
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![Part 3: Becoming CEO
Once you have decided that a move into corporate management is for you, how do you go
about making the switch to that venerated CEO position?
According to David Talalla, director of recruitment company David Talalla & Associates, the
lawyer's route of ascent to the loftiest of corporate management positions depends largely
on the type of management role in question.
"It depends on the role [you want]. If it's a legal‐related management position then most
companies would be looking for a candidate with top‐tier firm experience. However, with a
non‐legal corporate management position, a law degree and background is highly regarded
especially if it is combined with some form of management skills and a qualification such as
an MBA," he said. "Nevertheless, the more common route is to practice in a firm for several
years before going on secondment with a client or being hired by a client as in‐house
counsel, and then from there moving to a management position."
Like many lawyers who shift into corporate management roles, Gai McGrath, general
manager of customer service at BT Financial Group (BTFG ‐ the wealth management division
of Westpac), began her legal career as a private‐practice lawyer.
She began in 1986 as a solicitor with Sydney‐based law firm Rosenblum & Partners, before
studying at the London School of Economics for a masters in law in1989. After a stint
practicing as a solicitor with London law firm, SJ Berwin & Co, she returned to Rosenblums
(she became a partner in 1993) before moving into an in‐house role and then progressing to
a true management role.
"In 1996 [after seven years in private‐practice] I decided to make the step to in‐house
counsel when I joined Perpetual, eventually becoming general counsel & company secretary
in 1999. At this point I joined Perpetual's executive team and was able to gain broad
exposure to the company's business and strategic decision‐making ‐ this opened my eyes to
the opportunity to take the step beyond being a strategic adviser to being a strategic
decision‐maker," she said.
Although the climb into corporate management was luckily effortless for McGrath, she
admits it was a career change which required full focus and total commitment
"For me it was a smooth transition because firstly by being the general manager of Risk
Solutions at BT I had already moved away from day to day legal work and secondly I made
the conscious decision not to renew my practicing certificate so that I didn't have that
‘safety blanket" and had to be fully committed to the transition."
John O'Sullivan, currently chairman of the Australian Investment Banking Department of
Credit Suisse (Australia) Limited, however, had a different experience.
He also got his start as a private‐practice lawyer ‐ beginning work at Freehills straight out of
law school in 1978, where he spent the next 25 years (becoming a partner in 1983) before
becoming general counsel at CBA in June 2003.
"I joined Credit Suisse at the start of 2008, but the two big changes in my career path ‐from
private practice to general counsel at CBA and then my move from CBA to Credit Suisse ‐
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![were driven by very similar catalysts. Each was partly opportunistic in that I was lucky
enough to be offered fascinating, challenging roles with world class organisations. But more
importantly, each gave me an opportunity to stretch myself, to widen my skills and do
something genuinely new and exciting," he said.
"However, [in my opinion] it's not an easy transition. You do need to unlearn some of the
things you value as a lawyer. For example you need to learn to manage risk, not avoid it
altogether. You also need to learn new skills ‐ for example, lawyers aren't always necessarily
good at managing larger teams of people."
To learn these skills, several lawyers who have eventually made the move into management
have undertaken a series of courses to help them acquire or hone the skills required to
succeed in corporate management type roles. Although the completion of these courses has
not single‐handedly guided them to corporate glory, it has certainly helped.
"In 2005 I did the International Executive program at Insead Business School in
Fontainebleau in France and Singapore," said McGrath.
"This program is specifically designed for executives making the transition from more
technical roles to broader general management; and in addition to teaching me about
technical subjects such as marketing and financial management, the course helped me
understand what I needed to change about the way I operated in order to be successful in a
broader role."
David Krasnostein, now head of MLC Private Equity, undertook the same course at INSEAD
shortly before his move into management and although the course helped cement his
decision to make the jump, he says making the right choice about which management role
he wanted was equally important to his success and the ease of the transition.
"The INSEAD course was very useful in helping me to move into the corporate management
role, but it was a natural transition. I had to move to a management role which was going to
hold my interest," he said.
"John Stewart (who was the CEO of NAB at the time) had shown me a few businesses that he
was happy for me to run, but upon closer examination, they seemed to involve a lot of
operational type issues. What attracted me to the private equity business was that it
appeared to be the logical next step from what I had already been doing. Private equity at its
simplest is really buying and selling companies, which is something I had been doing for
about 30 years ‐ albeit from the legal side ‐ so at least the concept and the core business was
something I was very familiar with."
However, no road to success is the same ‐ as O'Sullivan reveals. Unlike McGrath and
Krasnostein, he did not study any management course before landing his role in corporate
management, but says that despite that many of the skills he learnt as a lawyer were useful
in adjusting to the move.
"I had no formal training but lots of on‐the‐job crash courses!" he said. "But on the other
hand life as an in‐house lawyer does teach you how large organisations work and does teach
you very valuable skills enabling you to maximise your impact in a corporate setting.
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!["The key skills in corporate management are people skills as much as (or more than)
technical skills. Strategic vision and industry understanding are also critical. For lawyers,
technical skills are critical, people skills are important and strategic understanding is nice. So
different priorities among the skill set apply to managers as opposed to lawyers."
Experience as an in‐house lawyer undoubtedly provides an advantage for those looking to
move into management but it is important to keep mind that while the skills and
responsibilities learnt as a lawyer are an added bonus, they alone are not the key to
success.
"Take the time to undertake some self‐reflection and 360 degree feedback so you
understand that what made you successful as a lawyer may not be what will make you
successful in a general management role. You may need to be prepared to change in some
fundamental ways and unless you're willing to undertake this difficult transition it may not
be for you," said McGrath.
Peter Turner, chief executive officer of the Australian Corporate Lawyers Association, who
himself made the move from in‐house lawyer (previously head of legal at Fosters) to a
corporate management role, agrees that whilst there is no set map to corporate glory, there
are two windows of opportunity along a lawyers career path during which a successful
switch is more likely.
"It is generally quite difficult to make the transition into a more strategic role because you
are always in a position where you have to trade off what it might do to your career as a
lawyer and whether you will be able to return to a legal role down the track," he said.
"[For this reason] I believe you have to make the jump fairly early or quite late, rather than
at mid‐level. If you make the move earlier, you have the opportunity to recover and you also
have the opportunity to come into a management role at a time where other people are also
doing the same and you'll really succeed on your own merit. If you do it later in your career,
you have all the accumulated experience of having worked across the organisation as senior
counsel and had the years of management to see how it works in practice. Then you can
make that change at that level almost seamlessly. Many lawyers contemplating that kind of
switch later in their careers also augment their training by doing MBAs or financial skills
training or public speaking training."
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![Part 5 – Not renewing your practicing certificate
To practice law in Australia without a valid
practising certificate is an offence ‐ so it goes
without saying that not renewing your practising
certificate at the proper time can be one of the
biggest mistakes you can make as a lawyer.
The professional association to which a lawyer
applies for a practising certificate differs ‐ typically,
solicitors apply to a law society and prospective barristers to a bar association; but in 'fused'
jurisdictions, such as South Australia, the law society issues practising certificates for both
solicitors and barristers. All practising certificates must be renewed annually.
If they are not renewed at the right time, it could cost you your career.
"It is illegal to practise as a solicitor without a current practising certificate, so [not renewing
it] is not an option," said a spokesperson from the Law Society of NSW. "Penalties for
practicing as a solicitor without a practicing certificate can include a maximum A$22,000 fine
and it can also constitute professional misconduct or unprofessional conduct and, depending
on the length of time a lawyer practises without a certificate and whether it was deliberate
or not. A range of orders can be made as well as the fine, including an order removing the
person's name from the roll of lawyers."
Renewal is also usually subject to certain conditions and solicitors must comply with a
number of statutory requirements as part of the renewal process, including having
professional indemnity insurance and showing completion of the mandatory CLE (continuing
legal education).
According to the spokesperson from the Law Society of NSW, there are a few circumstances
where lawyers may not renew their practising certificates.
‘some solicitors will let their certificate lapse for a while if they are going overseas or not
using it for a period of time and then re‐apply for it when they wish to commence practice
again. Also, solicitors generally don't renew their certificate if they are retiring or no longer
wish to practise as a solicitor ‐ for example, if they're moving to a non‐legal position."
This is one circumstance where renewing a practising certificate is not required ‐ but it might
be a good idea anyway.
"If a lawyer is considering a 'switch' to corporate management, they can elect to retain their
practising certificate regardless of whether they are practising or not," said the
spokesperson from the Law Society of NSW.
It may not be a bad idea according to the experts in last weeks' article, if the move into
management isn't all roses, you can always settle back into legal life immediately.
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![open its second office in Melbourne in September 2009, nearly two years ahead of the
managing director’s most optimistic plans. And while he doesn’t have confirmed plans for
any new offices, Jagger says that a Sydney or Brisbane office isn’t out of the question.
Marque Lawyers
Managing director: Michael Bradley
Offices: Sydney
Marque Lawyers has become the standard bearer for those advocating a fresh approach to
billing. Will this fledgling firm be able to continue the momentum in 2010?
Michael Bradley is still a bit miffed that he wasn’t named as one of Australia’s hottest
lawyers in last year’s ALB Hot 40 feature, but luckily he agreed to speak with us for this
article. Marque Lawyers opened its doors in August 2008 and has experienced remarkable
growth in its short lifespan, growing from four to seven partners and adding 12 lawyers to
its original five lawyer base. All of this occurred at the height of the GFC and Bradley
describes it as “exceeding wildest expectations.” Much of the growth has come from direct
referrals from existing clients and industry contacts. Bradley believes that this support has
been a response to Marque’s innovative billing concepts and a “longstanding, deep‐seated
frustration” in the market at traditional hourly‐based legal billing. Alternative billing
arrangements are not unique to Marque, but Bradley says even firms which would like to
pursue alternative systems face fundamental constraints. “In those firms, each individual in
the firm is accountable for every hour of their day. The billable hour is culturally embedded
and a fundamental part of the business model.” Bradley is looking to consolidate in 2010
and says that he’s keen for Marque Lawyers to “continue to be as annoying as we have been
in the past.”
Norton Rose
Managing Partner (Australia): Don Boyd
Offices: Global presence
A big year lies ahead for the firm formerly known as Deacons. However, the first step in
coming to terms with the new world order will be to become accustomed to the new name
2010 will see Norton Rose Australia pursue what it calls a “headlight strategy” which
involves focussing on five areas: financial institutions, energy, infrastructure, transport and
technology. Managing partner Don Boyd says that the firm will be looking to recruit and
consolidate its talent in those areas. It is unclear what will happen to specialisations outside
the “headlights”, with Boyd saying that resources will be directed as a priority to the
headlight areas. Boyd says that full financial integration of Deacons and Norton Rose is
about “18 to 24 months away” and that the complexity of the transition to limited liability
status was proving to be challenging. However, a unified board is already in place and three
of the twelve members are Australians. The managing partner is a firm believer that the
global legal services market is consolidating, and compares the situation to Australia in the
1980s, when client demand led to formation of large national firms. “As time goes on, there
will fewer opportunities left [for mergers],” he says. Should we expect to see more
international mergers this year? “It may not play out in the short term, but it’s the right
thing for all large Australian firms,” says Boyd. “However, it’s not an easy thing to achieve –
it took us three years from making a strategic decision to actually making it happen.”
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Employment Analysis 2009 Summary & 2010 Watch List
- 1. Employment Analysis: 2009Summary & 2010 Watch List About Australasian Legal Business magazine 2 Chapter 1: Employers of Choice Survey for 2009 3 Chapter 2: Employers of Choice - Top Firms of Australia 5 Chapter 3: ALB 30 - Australasia’s Largest Firms 10 Chapter 4: ALB Fast 10 - Fastest Growing Firms 18 Chapter 5: Career Tips 25 • Courses for Career Advancement • Brains VS beauty in the job market • Law: a springboard to corporate glory • 7 ways to screw up your legal career Chatper 6: Salary survey reveals top opportunities 51 Chapter 7: Watch list – Firms to Watch in 2010 53 A series of valuable extracts from some of the top content of 2009 and 2010 as featured in ALB magazine and Legal Jobs Centre. Prepared by Chris Redshaw, Online Analyst E: chris.redshaw@keymedia.com.au t: +61 2 8437 4723 March, 2010
- 2. About Australasian LegalBusiness (ALB) magazine: ALB is the only independent magazine dedicated to the latest legal news, events and developments in Australia, Hong Kong, Singapore, China, Asia and the international business community. With a circulation throughout Australia, Hong Kong, Singapore, China, along with parts of Japan, Taiwan and Korea, ALB is the region's most effective way to reach all the major lawyers, corporate counsel and business leaders. With coverage on all the important and emerging areas of practice and business, ALB provides the most updated legal and business news from in and around the region. Each issue contains in-depth features examining changes in legislation, important areas of practice, and overseas jurisdictions along with revealing profiles of major industry leaders. In conjunction with its print publications, ALB also produces ALB legal news, ALB legal deals and legal jobs featuring the most up to date legal positions throughout the Asia-Pacific. One of Asia-Pacific's leading media companies, Key Media provides specialist publications, websites, events and business conferences focused on the needs of professionals, senior executives and business leaders. Offices in Sydney, Hong Kong, Singapore, and Toronto give the company exceptional reach and exposure to industry developments across the region. Key Media is a leading organiser of conferences, gala dinners, award ceremonies and events. Combined these include a packed calendar of professional education (to include conferences and seminars), trade shows, industry summits and award ceremonies. Our events are designed to cater to the needs of professionals, senior executives and business leaders. http://au.legalbusinessonline.com
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- 7. EMPLOYERS OF CHOICE- AUSTRALIA • Blake Dawson • Corrs Chambers Westgarth • Gilbert + Tobin • Freehills • Mallesons Stephen Jacques • McCullough Robertson • Swaab Attorneys • Thynne & McCartney EMPLOYERS OF CHOICE - NEW ZEALAND • Bell Gully • Buddle Findlay • Chapman Tripp • Russell McVeagh ALB’s Employers of Choice 2009 - top firms in the Gulf/Asian jurisdictions MIDDLE EAST • Denton Wilde Sapte • Fichte & Co • Simmons & Simmons • Norton Rose • Al Tamimi & Company CHINA - DOMESTIC FIRMS • King & Wood • Jun He Law Offices • AllBright • Wang Jing & Co • Llinks Law Offices • Deheng Law Firm CHINA - INTERNATIONAL FIRMS • Skadden, Arps, Slate, Meagher & Flom • Jones Day • Paul Hastings • Allen & Overy • White & Case 7
- 8. JAPAN - INTERNATIONALFIRMS • Davis Polk & Wardwell • Bingham McCutchen • Milbank Tweed Hadley McCloy • Fredrick Swaab, Swaab Attorneys TAIWAN • LCS & Partners • Tsai & Tsai • Formosa Transnational MALAYSIA • Zul Rafique & Partners • Zaid Ibrahim & Co • Shearn Delamore & Co HONG KONG • Clifford Chance • Linklaters • JSM • Slaughter & May • Deacons INDONESIA • Melli Darsa • Hadiputranto Hadinoto & Partners • Ali Budiardjo, Nugroho, Reksodiputro INDIA • Amarchand & Mangaldas • AZB & Partners • Luthra & Luthra • J Sagar & Associates Trilegal PHILIPPINES • Romulo Mabanta Buenaventura Sayoc & De Los Angeles • Sycip Salazar Hernandez & Gatmaitan KOREA • Kim & Chang • Yulchon Lee & Ko • Shin & Kim 8
- 9. • Bae Kim & Lee SINGAPORE • Drew & Napier • WongPartnership • Baker & McKenzie.Wong & Leow • Allen & Gledhill • Rodyk & Davidson VIETNAM • YKVN • Freshfields Vietnam • VILAF 9
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- 11. Australasia’s 30 largest firms Rank Firm Total Country Managing Total Total No of lawyers/ of origin partner/CEO lawyers partners offices partners Australia 1 Minter Ellison 1031 Australia Guy 764 267 10 Templeton 2 Mallesons 949 Australia Robert 770 179 5 Stephen Jaques Milliner 3 Clayton Utz 867 Australia David Fagan 643 224 6 4 Freehills* 832 Australia Gavin Bell 619 213 4 5 Allens Arthur 797 Australia Michael 627 170 4 Robinson Rose 6 DLA Phillips Fox 779 Australia Tony 619 160 8 Crawford 7 Blake Dawson* 768 Australia John Atkin 590 178 5 8 Corrs Chambers 524 Australia John Denton 408 116 5 Westgarth 9 Deacons 472 Hong Don Boyd 262 210 5 Kong 10 Australian 391 Australia Rayne de 391 n/a 8 Government Gruchy Solicitor 11 Gadens 368 Australia Ian Clarke 237 112 6 12 Baker & 315 US Mark 209 84 2 McKenzie Chapple Australia 13 Sparke Helmore 298 Australia John Davis 240 58 8 14 Middletons 289 Australia Nick Nichola 230 59 2 15 Russell 271 New Gary 227 44 2 McVeagh Zealand McDiarmid 16 HWL Ebsworth 263 Australia Juan 165 98 7 Lawyers Martinez 17 Simpson 245 New Rob Fisher 197 48 2 Grierson Zealand 18 Hunt & Hunt 229 Australia Maureen 156 73 10 Peatman 19 Bell Gully 223 New Roger 180 43 2 Zealand Partridge 11
- 12. 20 Chapman Tripp 211 New Andrew 160 51 3 Zealand Poole, Mark Reese 21 DibbsBarker 211 Australia Alan 141 70 5 McArthur, Duncan Hart 22 Maddocks 196 Australia David 146 50 2 Rennick 23 Henry Davis 178 Australia Sharon Cook 130 48 1 York 24 McCullough 170 Australia Brett 135 35 1 Robertson Heading 25 Gilbert + Tobin 160 Australia Danny 108 52 1 Gilbert 26 Holding Redlich 156 Australia Chris Lovell 112 44 3 27 Kensington 153 New Chris 111 39 2 Swan Zealand Heilbronn 28 Buddle Findlay 144 New Peter 107 37 3 Zealand Chemis 29 Moray & Agnew 144 Australia Michael Pitt 91 53 5 30 Piper Alderman 143 Australia Gordon 92 51 4 Grieve * Freehills, Blake Dawson: FTEs submitted Note: This table does not purport to be exhaustive. Figures are provided by the firms themselves and are accurate to June 2008. Where firms are unable to supply figures, websites have been used Firms and figures Mallesons is one of the Big Six firms that have done well, reporting revenue growth of 10.7%. The firm is closely followed by Clayton Utz, which reported an increase of 9% in revenues, but top gong goes to Blake Dawson which realised an increase of 11.9%. Although Minter Ellison is the largest law firm by total lawyer and partner numbers, it came in as the fourth largest firm by revenues. Last year it was in third place but had to step down in favour of Clayton Utz, whose consistently solid performance has placed it in the top three this year. Other remarkable performers were Gilbert + Tobin, which revealed a revenue increase of 14.9%, and Baker & McKenzie, which posted top line revenue growth of 13.2%. Meanwhile, in the mid‐sized segment of the market, Holding Redlich (+20.4%) and Maddocks (+17.1%) stood out. On the other side of the spectrum we find the Australian Government Solicitor, which saw income increasing by just 1.8%, while Thomson Playford achieved only 1.1% growth. The 12
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- 14. For many law firms 2007–08 has been another good year in terms of revenue growth and this seems to justify the unabated optimism of law firm managing partners. But there is a catch to continued good conditions, warns James Grant in his before‐mentioned opinion piece. “People get carried away, prices go too high and economic resources go where they shouldn’t.” Let’s hope that the legal industry is the proverbial exception to the rule. David Fagan – Clayton Utz Clayton Utz is set to post revenue growth of 9% this financial year, an increase to A$470m and another strong result after last year’s 11% increase. “It’s a year of two halves,” says David Fagan, chief executive partner of Clayton Utz. “Up to December, it was a very buoyant corporate and banking market, while beyond December it was a very buoyant litigation market.” It’s clear that the economic climate has changed since December, but Fagan says it’s not all down to the liquidity crisis stemming from the subprime mortgage industry collapse in the US. “The subprime crisis, the packing up mortgages with very problematic credit quality, we’ve not had that here. In the US one in every five houses has had a foreclosure notice, in Australia that’s 0.2%. We’ve not had that asset problem and, correspondingly, I don’t think we’re going to have the litigation they had over subprime issues.” Fagan does acknowledge that some of the fallout of the subprime crisis has trickled into the Australian market and he says Clayton Utz is advising Lehman Brothers on products that the financial services company sold into the Australian market. But the large corporate collapses that Australia has seen in recent months are not tied to the US‐originated crisis, he argues. “The work that is related to Allco, Centro and MFS, that is more about their business models than the credit crunch.” The slowdown in the Australian market is a result of the culmination of factors, including a rising oil price, record low consumer confidence and fewer corporate sales, and there is no telling when the climate will improve. The firm is, therefore, budgeting for more subdued growth next year, says Fagan. “There is uncertainty in what the next 12 months will bring; a degree of caution is probably sensible.” John Denton – Corrs Chambers Westgarth Corrs Chambers Westgarth’s revenues have increased by 3.4% to A$240m in the financial year 2007/08. This is not quite as high an increase as in the previous years. Last year the firm reported a growth of 11.5%, while over the last three years the firm’s total revenues grew by 25%. For next financial year, the firm is looking at single digit growth – around 5 – 6%. Chief executive officer John Denton of Corrs says the slowdown in revenue growth is caused by the firm’s efforts to develop its industry groups. “Partly, it is us doing things,” he says. “We are very committed to our 2010 strategy and that does take up a lot of capacity. We’re not skinnying the firm up here, we are investing very heavily in L&D [learning & development] in particular, and in information systems.” 14
- 15. “We could suck in more revenue if we wanted to, and I do notice that used to be a focus of some people in the market place, but what’s the point if you’re not generating additional return from that? All you’re doing is adding revenue. We’re not competing on scale; we’re large enough to do the big deals.” Denton discards the idea that it’s the influence of the credit crunch. “What has been surprising for us is how strong corporate advisory has actually been this year. We’ve closed some pretty amazing deals; we’ve done five of the top 10 deals that have been closed. So the areas that we are seen by some of our competitors as being softer, in fact, haven’t been soft for us.” Guy Templeton – Minter Ellison Minter Ellison is the largest law firm in Australia by total lawyer numbers, but this financial year the firm lost its place in the top three largest law firms by revenue to Clayton Utz. Minters came in at fourth place, reporting A$460m in revenues, while its competitor posted A$470 in revenues. Despite having to digest a drop on the size‐by‐revenue ladder, Minters still managed to grow revenues by 5.3%. CEO Guy Templeton says that the insolvency and restructuring practice has been the main driver of growth. “We’ve maintained a full‐sized insolvency and restructuring team throughout the boom times. That is now paying off,” he says. “Our restructuring and workout team is firing in all cylinders; it’s one of our strongest areas.” The firm is advising ANZ on the legal issues surrounding the collapse of stockbroker Opes Prime and the bank’s exposure to Centro. It also continues to act for PwC as the liquidator of seven of the mezzanine finance companies within the Westpoint Group. Templeton says that inbound work from Asia has been unaffected by the global credit crunch and he expects this to be one of the main drivers for the next financial year, particularly for the firm’s energy and resources practice. He also predicts a strong year for the firm’s infrastructure practice, driven by major projects undertaken by state governments. For example, Minters advises the Port of Melbourne Corporation on the channel deepening project. “[These projects are] starting to flow through now. The pipeline for the whole of Australia has been full for some time and will remain so for some time to come.” Mark Leibler – Arnold Bloch Leibler One of the most remarkable deals of last year was undoubtedly the public listing of plaintiff firm Slater & Gordon. Not only did the IPO provide some challenging legal and regulatory issues, but it also sparked a debated on the ethical merit of the adventure. Some critics said the listing of a law firm would dilute the responsibility lawyers feel towards the court and their clients. 15
- 16. Arnold Bloch Leibler acted for the adventures law firm on the IPO and senior partner Mark Leibler says he looks back on the transaction as one of the firm’s highlights of last year. ‘slater & Gordon probably has to stand out simply because of its uniqueness,” says Leibler “This was the first time that a law firm – forgetting about Australia, but internationally – has gone public. It raised a whole lot of interesting and fascinating issues, which had to be considered, for the first time […], but we overcame them all and as you can see Slater & Gordon are flourishing.” But the successful listing hasn’t tempted the firm to go public themselves. “We have a different model,” he says. “We don’t rule out anything, but at this moment I don’t see us seriously heading in that direction.” Arnold Bloch Leibler realised a healthy revenue growth of 7.6% in the financial year 2007/08. Leibler expects to further grow the Sydney office of the firm. “There is a huge potential for growth there,” he says. “We think there is going to be a lot more commercial litigation; some things have gone wrong in the credit crisis.” The expansion will depend largely on the ability to find the right people. “Because of the economic downturn there will be a bit of a shakeout, but to get the right quality people is difficult.” Robert Milliner – Mallesons Stephen Jaques Like the year before, Mallesons Stephen Jaques dominates the revenue table in the financial year 2007/08. And what’s more, the firm has broken through the half a billion dollar barrier, reporting a total revenue growth of 10.7% to A$545m. It took the firm 175 years to get to this size, and so ALB magazine asked the firm’s CEO, Robert Milliner, how long it will take before it reaches a revenue figure of a billion dollars? “That’s a quantum jump,” says Milliner. “For the Australian firms, a billion dollars would not be a sensible aspiration. It’s a very competitive market here; there are a lot of good firms. I doubt that any Australian firm would think that doubling its size in Australia would make sense.” But Milliner does aim high when talking about expansion in Asia. The firm generates roughly 10% of its revenues in the Asian region, particularly in China. Milliner says that although he expects to grow moderately in Australia, the real growth story is in Asia. He wants to build up the Beijing and Shanghai offices to the same size of the Hong Kong office, which has over 70 lawyers. Milliner illustrates the importance of China for the Australian economy by a quote of Ian MacFarlane, the former Governor of the Reserve Bank, who said that Australia’s economy is simply a factor of the global economy. “That was true of the early 2000s,” says Milliner. “Interestingly, the resources dependence of China has made it more the case that Australia’s economy is a factor of China’s economy.” Although some have doubted the profitability of the Asian adventure, Milliner waves away this criticism. “This used to be the classic rhetoric of the early 2000s: you don’t want to 16
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- 18. Chapter 4: ALB Fast 10 ‐ Fastest Growing Firms This year’s Fast 10 reflects an industry in transition – mergers, listed firms and the GFC have all made their impact on the composition of the 2009 list. This also promises to be one of the most controversial Fast 10 features ever published. What constitutes “growth”? What constitutes a “law firm”? As will become clear, industry change is posing new questions and there is no consensus yet on the correct answers. Organic growth or merger growth? This year’s Fast 10 reflects an increasing number of firms which have achieved their growth through mergers. This is not a completely new phenomenon – last year’s winner, Thynne & Macartney, achieved some of its growth courtesy of a merger with fellow Queensland firm Biggs & Biggs. However, as the mid‐tier consolidates, mergers are having an increased impact on the Fast 10. This presents a dilemma. On the one hand, it is important to acknowledge the efforts of firms which have achieved growth as a result of shrewd leadership and superior client service. Organic growth is undoubtedly a key benchmark of a high‐performing firm. Methodology The Fast 10 list is based on a survey sent to over 100 firms in Australia and New Zealand. Only firms which completed the survey were considered for inclusion in the Fast 10. The primary criterion for inclusion was percentage revenue growth for the 2009 financial year and to a lesser degree growth in fee earners. Figures were supplied by the firms themselves and only firms with at least ten lawyers were eligible for consideration. All growth figures and percentages have been rounded to the nearest whole number. On the other hand, the purpose of the Fast 10 is to simply provide a guide to the fastest‐ growing firms and to leave the market to draw its own conclusions as to the merits of the particular growth strategies employed. Given the pattern of mid‐tier consolidation over the past two years, it is also arguable that excluding merged firms would provide an incomplete market picture. Another complication is demonstrated by Thomson Playford Cutlers, who lost their insurance arm in 2008 with the secession of breakaway firm Gilchrist Connell, yet gained Cutler Hughes Harris in Sydney and Dibbs Abbott Stillman in Melbourne. So how would one calculate organic growth in such a scenario? This year the format of the Fast 10 remains unchanged, with law firms being assessed on overall revenue growth. However, we make particular acknowledgment of the firms which have grown organically – and in particular, we congratulate Wotton + Kearney on its achievement of 37%organic growth. Henry Davis York, Hall & Wilcox and Mills Oakley are other examples of firms that have eschewed mergers and still made the Fast 10. Listed and aggregate firms 18
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- 25. Chapter 5: Career Tips ‐ Courses for Career Advancement If career progression is on the cards, courses which expand and fine‐ tune certain skill sets can be a valuable advantage in a competitive job market. While there are a variety of courses available to lawyers, there is no 'one size fits all' study guide. Liam Richardson of legal recruitment consultancy Taylor Root says that the choice of course is essential the competitive edge it can provide. "Beyond professionally‐required qualifications, further education will be viewed subjectively by different clients. If a candidate is certain about wanting a career in a particular field ‐ for example IP or finance ‐ then an LLM may be a good idea," he said. "An LLM or JD from the UK or the US is also particularly advantageous when applying for positions with international organizations. Similarly, for those candidates looking to move into quasi legal/business in‐house roles or ultimately to the business side, an MBA could be an advantage. The candidate may be deemed as having a higher level of commercial acumen given the content of the course." Dr Peter Ellender, CEO of Carter Newell ‐ who himself completed an MBA program at the University of Queensland ‐ agrees that undertaking further education can assist a lawyer's career advancement. He adds that further study can fill some important gaps that are not catered to in general legal education. "Lawyers who want to progress and build their practice must be able to fully understand the issues that their clients are dealing with in their day‐to‐day work. Legal training does not expose lawyers to commercial principles or practices and so they generally have to learn these skills on the job," Ellender said. "Further, it is important when running a business or a practice group that there is the understanding of leadership principles and how to get the best out of team members. This includes having essential management skills, providing clear outcomes, feedback and encouragement ‐ as well as having people skills, so often called 'soft skills'." "I believe these are missing from 'pure' legal education and even the Practice Management Course for principals is limited in the areas of commerciality. So if a lawyer wants to progress and build their practice then further study to grasp the commercial principles and practices is a good option," he added. Richardson adds that above all, having top grades, the quality of the institution and timing are essential. "What is key are the results obtained at A‐Level and the degree as well as the quality of training received on the training contract. These are the factors which will really influence career advancement. Those candidates with strong academic results and training from a top‐tier law firm will invariably attract the most attention from prospective employers." Having continuous work experience is always looked upon very favourably, so it may be advisable to complete all further study prior to starting your career. Others might suggest a down market might be a better time to pursue further education as you have the time to do so. However, if you do stop work to pursue further education you must also remember that you will have ultimately been out of practice for a year or two and may not be as desirable a candidate as someone who has had no breaks in their employment record," he said. 25
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- 27. Brains VS beauty in the job market Whoever thought looks had no impact on hiring potential is in for 0BW a shock. Recent news suggests that beauty has much more to do with whether you get that job than initially assumed. According to reports by Gawker.com, Dov Charney, founder and CEO of American Apparel, recently ordered that all the less attractive people who work for the company be fired due to fears that they may have been affecting the 'bottom line'. Whilst Charney has denied the allegations, studies ‐ such as one by the University of Florida which examine a link between a person's height and salary* ‐ tend to support the theory that looks do impact on career. However, corporate image advisor June Dally‐Watkins believes that whilst natural charm and intelligence should always win out over plain good looks, presentation and styling are extremely influential in career matters. "While I believe a depth of beauty is more important than just good looks, presentation is extremely important," she said. "You don't have to be a good looking person, however, it is essential to present yourself well from top to toe ‐ which means a nice hairstyle (whether male or female) and business acceptable clothes, coordinated well. I believe a person should get the job the moment they walk in the door, because of the way they present themselves." Regardless of whether natural good looks play a part in attaining the role you're after, the experts agree that overall presentation is undeniably a factor in the selection process and getting those styling tips down pat can certainly contribute to your competitive edge. According to June Dally‐Watkins, for ladies this means: * Not wearing clothes with plunging necklines, bare midriffs or skirts that are too short * They should wear make‐up which is acceptable to the job and apply it in a careful way ‐ not too heavy * Hair groomed and not a lot hanging down the front of the shoulders For men: * A good haircut. * To have posture which looks confidence and self‐assured * A nice firm handshake, eye contact and most especially a warm friendly smile, which again, reflects itself in the tone of one's voice * The study by the University of Florida found two centimetres in height amounts to about AU$940 more in pay each month. IE ‐someone who is 183 cm tall can expect to make AUI$6,582 more each year than someone who stands 167 centimetres. 27
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- 30. Part 2: Reaching Corporate Management Positions The motivations and ways for lawyers to reach senior corporate management positions are, happily, as various as the positions themselves. For many lawyers the motivation behind a move to senior corporate management may be because it is simply the next, often last, big step up the career ladder ‐ a change in responsibilities and a fresh challenge. For others, the big attraction of such a role is the opportunity to use the skills learnt in practice in a more influential, operational, commercial and executive context. "One of the benefits is that you do get rid of that lawyer's stamp and in effect you take your skills to the next level and you are able to bring those skills to bear for the benefit of the entire organisation ‐ whereas in the legal role you are helping to facilitate deals and get things done, but you're not influencing the entire corporation. I think there's a huge attraction in being able to move up to the next level and to really be part of the management team and the decision‐making role," said Peter Turner, chief executive officer of the Australian Corporate Lawyers Association. John O'Sullivan is currently chairman of the Australian Investment Banking Department of Credit Suisse (Australia) Limited. O'Sullivan, a former partner at Freehills and former general counsel at Commonwealth Bank Australia, saw the main attraction of pursuing a management position as being the opportunity to wield greater corporate influence and engage in a stimulating mix of work that provided the best of both worlds. "Moving to CBA was my first opportunity to manage a large team of people, but more importantly I became a member of the CBA executive committee ‐ the 10‐person team that reports to the CEO and helps him run the bank. That meant that I was able to participate in key decision making at one of the country's great institutions. That was a great attraction," he said. "Credit Suisse then offered different advantages. It enabled me to return to the kind of deal doing I loved at Freehills but from an investment banking perspective. It was also exciting because of its truly global businesses and focus and because of the awesome intellectual horsepower it commands." On a personal level, the move to management also provided O'Sullivan with a fresh challenge and an opportunity to learn new skills as an individual. "I also wanted to broaden my skills and prove to myself I could John O'Sullivan, succeed at more than one career," he said. "That's high risk ‐ it Chairman, Australian would have been much safer to stay doing the kind of corporate Investment Banking transactional legal work I knew I was good at ‐ but I knew if I Department, Credit succeeded it would be high reward too." Suisse The path to the top for other corporate leaders has been more of an evolution. David Krasnostein is now head of MLC Private Equity, but was formerly Telstra's first general counsel, head of strategic planning and corporate planning and then NAB's chief group 30
- 31. general counsel. For him the transition was less of a clearly defined goal and more a natural progression. "I think it was a natural next step for me. When I got into law I was very passionate about being a lawyer and that passion lasted a long time ‐ about 30 years. "After a couple of years at Telstra, I attended INSEAD in Paris where I did a three‐month international executive program, and that got me very interested in the business side. I then David Krasnostein, head of moved to NAB as corporate counsel, and although that was MLC Private Equity a pure legal role, I kept an interest in the commercial side of things." he said. “It took me some years to circle back again and decide that I actually wanted to run a business, but [my move to management] was a combination of a general desire to run a business and a feeling I had practiced law long enough. Thirty years was a bit of a milestone and I thought I'd probably done everything I wanted to do as a lawyer. I was interested in doing something that would be more stimulating for me. Those two things came together at the same time and it was just the right time to take the next step." Some lawyers make the move to management because of an express desire for a change of environment. Gai McGrath, general manager of customer service at BT Financial Group (BTFG ‐ the wealth management division of Westpac), is a case in point. "When I was approached to join BTFG in 2003, one of the key attractions of the role as general manager, risk solutions was the opportunity to take on a broader risk management role and join a larger organisation," she said. "The opportunity to move completely into broader general management came in early 2006 when I was appointed head of customer service delivery for BT's Customer Solutions business. Then, when Westpac and St George merged in 2008, a new position of general manager, customer service was created for the merged wealth business and I was fortunate to be appointed. I now lead over 1,000 people across seven different locations in Australia who service over three million interactions with our customers each year ranging from contact centre to complex unit pricing of our funds." Like Krasnostein, the opportunity to embark on a new challenge and expand on the skills she had learnt as a lawyer was also a major incentive for McGrath to move to management. "I felt I had achieved all that I wanted to achieve as an in‐house lawyer and risk management professional... I wanted new challenges in areas that I had no relevant expertise," she said. Motivations aside, the decision to switch out of a lucrative, stable and engaging position within the legal profession itself into the corporate cut‐and‐thrust is a momentous one for any lawyer. It should, therefore, not be taken lightly or without due consideration of all the repercussions. Knowing when to jump is key, as is analysing exactly where one is in terms of career progression. No matter how well suited to a management position a lawyer may be, there are risks involved. 31
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- 36. 7 Ways to Screw Up Your Legal Career Part 1 ‐ Don't be a bully A survey by Drake International of over 800 Australia‐wide employees recently revealed that bullying is still rife in Australian workplaces, with more than 50% of survey respondents stating that they had witnessed bullying behaviour and over 25% saying they had been a target of bullying themselves. It's not a striking revelation that bullying is a bad road to go down, but often in high‐powered, competitive and stressful professions ‐ such as law ‐ there can be a fine line to walk between a hard word and 'constructive criticism' and harassment. However, with surveys such as the aforementioned raising awareness of bullying in the workplace and the introduction of codes of practices, changes to legislation and stringent new harassment laws set to be introduced by the Federal Government, the issue of workplace bullying is gaining momentum. So it's a good idea to ensure that you are not crossing the line. "I think there's greater awareness in the workforce about what's acceptable and what's not and organisations have in place proper policies and procedures. I also think a lot of Gen Y won't put up with what older Gen X and Baby Boomers put up with ‐ because they've never worked in a workplace that hasn't had an awareness of bullying. Previous generations had a tendency to put up and shut up," says Jo Kamira, principal at Wise Workplace Investigations. Another point Kamira makes is that there are many misconceptions about what 'bullying' consists of and those misconceptions can lead to serious mistakes which could negatively impact on your career. She notes that often the first things that spring to mind when the word 'bullying' is used are the hazing or initiation rites that tradespeople or apprentices suffer; and following that overt sexual harassment comes to mind. However, she says that bullying often takes far more subtle forms. ‘sometimes it's hard to put your finger on what's wrong. It can be that subtle. It can be little things like assuming that because someone has a position they should be able to do a job, but not giving them the information to do that job. That's not overt ‐ it could be explained away by saying the workplace is very busy or the manager doesn't have the time. But if that manager thinks that person isn't really capable then that's a subtle type of bullying as well, which is just as insidious as someone doing something overt," she said. There are many types of bullying (see box‐out below); and in this day and age, in some ways, bullies have also been aided by the rise of the internet and e‐communication where instant communication such as Twitter makes it easy to transmit messages that are offensive, humiliating or intimidating. 36
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- 38. take a step back. If you get a reputation as a tantrum king or queen then you will automatically get the bully label. * Communicate Find time to sit down and communicate with your team or assistant, no matter how busy you are. Thrashing out the week's priorities over a coffee will reduce stress levels and any potential conflict when the going gets tough. * Measure yourself If you have a problem with one of your team then address it in the right manner. Do not rant or bitch about their shortcomings behind their back as this will undermine them and ultimately make them feel inferior and excluded. It might also make them a target for others. * Keep a level playing field While people deserve praise when they have done a good job, make sure you play fair. Letting 'favourites' develop is a dangerous game that can upset office politics and make people feel excluded. * Don't be a mirror If you don't like the way your boss treats you, don't act like them. Think about how you feel when someone treats you badly. Just because you've been managed badly, doesn't mean you have the right to dish it out further down the line. * Listen to ideas If someone challenges you, don't bite their head off. Think about what they have to say, make a note and let them know how their idea may work next time. * Don't leave people out When you organise the company get‐together, make sure everyone is involved. Try and encourage everyone to attend if they can, and don't let anyone feel that they are being excluded or left out. Source: http://www.dignityatwork.org/advice/what‐is‐bullying/. * The Dignity at Work H H Partnership is the world's largest anti‐bullying project. Types of bullying There may be a perception that workplace bullying is a one‐on‐one situation. Whilst this might be true in some cases, there is research that suggests others might be involved. In his 1996 book Bully in Sight, Tim Field outlined the following types of bullying: * Pressure or unwitting o Stress of the moment ‐ 'normal' behaviour o When organisations struggle to adapt to changing markets, reduced income, cuts in budgets, imposed expectations and other external pressures * Organisational o Where employer abuses employees with impunity knowing that the law is weak and jobs are scarce ‐ coercing employees to work 60/70/80 hours a week and then making life hell for anyone who complains 38
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- 40. Part 2 ‐ Walking the fine line between self‐confidence and egotism To make it to the top in law, you need to be self‐confident ‐ in your ability and skills as well as in your own persona and ability to deal with clients or colleagues. However whilst a healthy level of self‐confidence is a good thing, too much of an ego can be a draw‐back which could cost you a promotion and seriously stall your career development. "Of course, self‐confidence is an essential tool in career development as it usually demonstrates a lawyer is in control of their workload and more specifically the area of law he/she practices in. It also assures clients that they are in good hands and the lawyer they have hired is well equipped to handle their matter/deal etc and from the firms point of view, this is the message they are looking to convey to their clients. However, it must not be confused with arrogance or egotistical traits which are usually a form of disguise for lack of knowledge or more commonly a flaw in character," said David Talalla director of David Talalla & Associates. Talalla adds that whilst the culprits of inflated egos are often people who are not at the top yet but think they have what it takes, lawyers who are excellent at their craft are not immune, so it can be ironic when those that are particularly brilliant in their area of speciality become so egotistical it can detract from an otherwise stellar career. "There is definitely a fine line to tread between self‐confidence and having an inflated ego. However, in most cases this is easily distinguished once you start scratching below the surface. The inflated ego is usually associated with someone who either thinks he knows everything about his speciality and is not willing to listen or learn, or is not on top of their game but thinks they can bluff their way through by virtue of their inflated ego. The difficult one to gauge is the rare people who are extremely good at what they do and have an inflated ego to go with it," he said. "This can be extremely detrimental to ones career as it usually means an unwillingness to listen and learn and in most cases the inability to work closely with others in a team or collegiate environment. The obvious thing a lawyer could miss out on is a career path to partnership." Are you at risk of an inflated ego? Symptoms: * You swing between two states: being "nice" and plain arrogance. * You think and talk about standards, morals and rules a lot. * You often take things personally and way too seriously. * You feel deeply wounded when something you've done or even YOU yourself has been rejected in some capacity. * You are not fond of the masses or those who are in positions of authority. * You consider being "right" as the most important thing. * You feel the world owes you something. * You honestly believe you're above everyone else. * You often walk around feeling very proud. 40
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- 42. Part 3 ‐ Dealing with disagreements in the workplace "A lawyer's career can definitely be affected by engaging or provoking personal conflict. The severity of the impact depends on who the personal conflict is with," said David Talalla, director of David Talalla & Associates. "If it is with a superior then it could lead to cut in supply of high calibre work or a change in team for the solicitor. If it is a partner or senior lawyer then word gets around not just within the firm but to other lawyers who may be interested in working for that firm but not with that particular partner or senior/special counsel." There are many situations from which personal conflict can arise, but one of the main causes, often overlooked, is too much 'assertiveness' or an aggressive attitude towards co‐ workers, staff and/or managers. And whilst standing up for your rights and defending your opinions in the workplace is a necessary skill, the wrong approach can create tension and conflict. "It all comes down to the way the message is conveyed and the body language of the person conveying that message," said Talalla. "If a point is put across in an aggressive or strict manner, it could cause conflict." Michael Connolly, special counsel in the workplace relations and safety group at HWL Ebsworth agrees and says: "Being assertive does not mean being aggressive, abusive or displaying any form of intimidatory behaviour. From a lawyers perspective being assertive requires the lawyer to continue to act professionally and courteously in any dealings with other lawyers or the Courts. Crossing the line may breach professional standards requirements and from an employment perspective where a person's behaviour to another employee goes beyond merely ‘sticking to your guns" on an issue and becomes aggressive or threatening then that person may be displaying bullying behaviour." Conflict, or a memory of it, often have a big impact on the effectiveness of your collaboration, exchange of ideas, and information sharing ‐ which in turn can not only put a huge dampener on career advancement but also isolate you from other colleagues and cause you to miss out on opportunities. "This type of behaviour may be ostracised by other members of the workplace. Given the requirement to at times consult with colleagues, a lawyer who is known to behave aggressively, particularly in stressful situations, will soon find that other lawyers will be less inclined to assist them," said Connolly. Often such behaviour results in a toxic workplace developing with a high turnover of staff and a fall in productivity. This will often come to the notice of Managing Partners with serious consequences for the perpetrator. According to Shawn Skyring, partner at Truman Hoyle Lawyers, the best way to avoid personal conflict is by minimizing stressful situations as much as possible and monitoring the way you relate to your fellow co‐workers, staff and managers. "Employees can avoid conflicts at work by looking after their own well being outside of work ‐ for example, exercise, recreation, personal development activities, eating well and 42
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- 44. Part 4 ‐ Career timing When you're thinking of making that all‐important career move, one of the biggest mistakes you can make is to wait too long or move up too fast. Timing is critical ‐ and if you get it wrong it could backfire and set you back substantially. According to Peter Turner, chief executive officer of the Australian Corporate Lawyers Association, moving at the wrong time ‐ to corporate management in particular ‐ could impact negatively on a lawyer's career. "It is generally quite difficult to make the transition into a more strategic role because you are always in a position where you have to trade off what it might do to your career as a lawyer, and whether you will be able to return to a legal role down the track," he said. "Apart from the untimely loss of a potentially successful legal career, there is also the risk of ‘stuffing up" in the new management role. That risk is accentuated if you're not really ready for it. Line management can be a more volatile and competitive existence than life in a legal department. It requires a different 'survivor' skill‐set, and can require making the switch to step back in seniority in order to learn the ropes, before you are considered for a step up. It's also often a lonely existence without the support of a team, so a level of maturity is essential." While management is certainly a golden option for lawyers wanting to advance in their career, Turner warns that it is not the only option available and it should not be taken lightly. "I think that the most common mistake that some lawyers moving into management make is to fail to appreciate the enormous depth and breadth of the in‐house legal profession and the opportunities that it offers. It is very easy to imagine that a management role will give you more power and autonomy than a legal one. When you see the salaries that some CEO's earn, you might also imagine that it's a path to riches too," he said. "While there are plenty of examples of lawyers becoming excellent managers, there is an inherent risk in making the change of becoming a 'two‐time loser' ‐ failing to succeed as a manager and then finding it impossible to resume a career as a lawyer." There are several factors to consider when moving into management, and if it will be a positive for your career. The macro factors are: (i) where is your department/the company/the industry you work in headed; (ii) what is the economy doing and will it impact on a career in management? The micro factors include: (i) am I personally ready for this, with my age, health, skills and other important things assessed; (ii) what about my family? Will this affect my children at their age/s; (iii) what does my mentor/confidant think about the move? Turner also advises there are several precautions a lawyer can observe to safeguard against a complete 'crash and burn' situation if the switch is not fruitful. "Caution is a good thing, but too much can result in lost opportunity. The chance to make a change to management often comes up unexpectedly, at short notice and usually not at the optimum moment in your career. The secret ‐ if you have the ambition to move ‐ is to be as prepared as possible. 44
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- 46. Part 5 – Not renewing your practicing certificate To practice law in Australia without a valid practising certificate is an offence ‐ so it goes without saying that not renewing your practising certificate at the proper time can be one of the biggest mistakes you can make as a lawyer. The professional association to which a lawyer applies for a practising certificate differs ‐ typically, solicitors apply to a law society and prospective barristers to a bar association; but in 'fused' jurisdictions, such as South Australia, the law society issues practising certificates for both solicitors and barristers. All practising certificates must be renewed annually. If they are not renewed at the right time, it could cost you your career. "It is illegal to practise as a solicitor without a current practising certificate, so [not renewing it] is not an option," said a spokesperson from the Law Society of NSW. "Penalties for practicing as a solicitor without a practicing certificate can include a maximum A$22,000 fine and it can also constitute professional misconduct or unprofessional conduct and, depending on the length of time a lawyer practises without a certificate and whether it was deliberate or not. A range of orders can be made as well as the fine, including an order removing the person's name from the roll of lawyers." Renewal is also usually subject to certain conditions and solicitors must comply with a number of statutory requirements as part of the renewal process, including having professional indemnity insurance and showing completion of the mandatory CLE (continuing legal education). According to the spokesperson from the Law Society of NSW, there are a few circumstances where lawyers may not renew their practising certificates. ‘some solicitors will let their certificate lapse for a while if they are going overseas or not using it for a period of time and then re‐apply for it when they wish to commence practice again. Also, solicitors generally don't renew their certificate if they are retiring or no longer wish to practise as a solicitor ‐ for example, if they're moving to a non‐legal position." This is one circumstance where renewing a practising certificate is not required ‐ but it might be a good idea anyway. "If a lawyer is considering a 'switch' to corporate management, they can elect to retain their practising certificate regardless of whether they are practising or not," said the spokesperson from the Law Society of NSW. It may not be a bad idea according to the experts in last weeks' article, if the move into management isn't all roses, you can always settle back into legal life immediately. 46
- 47. Part 6 ‐ Poaching clients Whilst it may be commonplace for lawyers to take their client base with them when they move firms or branch into new business, there is a fine line that should not be crossed when it comes to clientele; and 'poaching' or 'stealing' clients from a previous employer or a rival firm could result in a tattered reputation. "The legal fraternity is a deceivingly small and one's reputation is usually determinative of success. Success in the law is often not only dependant upon building solid networks with professionals in other industries, but also requires trust and candour amongst colleagues within the profession," said Donna Adams, legal ethics solicitor and ethics department manager at the Law Institute of Victoria (Ltd). "While there's no prohibition in the Professional Conduct & Practice Rules 2005 to taking clients with you when you leave a firm, it's really important to manage the transition well. Firms might employ you with some trepidation if they knew you had a practice of taking your clients with you as you moved and changed throughout your career. They might also be more likely to get you signed up at the commencement of your employment in order to prevent any 'leakage' of their client base," she said. If the situation is not handled correctly and ethically, poaching clients could also 'burn bridges' with a previous employer and ‐ depending on the firm and the contract applicable to the lawyer ‐ poaching clients could also be deemed a breach of contract which would further soil a lawyer's reputation in the industry. "The clients need to be given 14 days notice in writing of any intention to transfer their file so that they have time to give the firm a contrary direction if they wish," said Adams. ‘some firms have also been known to stipulate in their employment contracts that the practitioner is unable to contact clients for up to a 2 year period after leaving the firm (although this time period often differs) and breach of these conditions may leave you open to litigation. Best practice would be to leave your previous employment unsullied by any inference of wrongdoing. Therefore tings like: copying client lists, precedents or other client documents onto your personal USB stick should be avoided at all costs." According to Adams, to avoid problems with a departing firm and keep their reputation intact ‐ setting aside any possible condition of employment that might prevent a practitioner from encouraging clients to transfer their files when the practitioner separates from the firm ‐ usually the prudent practitioner should first; 1) Speak to the firm about whether an arrangement may be made, particularly for clients for whom they have acted for many years, or that they might have originally brought along to the firm with them; 2) Tell the client they are moving ‐ unless they have arranged with the firm to take the client with them and the firm agrees to transfer the file. Then best practice would be to let the client know that if they wish to contact them, they should call the Law Institute of Victoria for their forwarding address details. (This is better than directly giving clients their new address and keeps their reputation as squeaky clean as possible.) 47
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- 49. Part 7 ‐ Bad behaviour at the office Christmas party According to Caroline Vickers‐Willis, the marketing manager for recruitment agency RossJuliaRoss, lawyers in particular need to display proper conduct at work‐related functions. If they don't, a slip‐up could cost them their reputation and in some cases even their job. "Although improper conduct in any work environment can have negative consequences, in the legal profession an employee's reputation is important for their firm, their clients and themselves so it's important to make sure your behaviours reflect the type of reputation you wish to have," Vickers‐Willis said. "The extent of the potential damage usually depends on the extent or the impropriety of the behaviour. But the negative consequences of improper behaviour at these events can include damaged promotion prospects, legal infringements or even loss of one's position if the behaviour was extremely inappropriate." Although Vickers‐Willis added that it's not 'commonplace' for significantly negative events to occur during the holiday party season, it is arguably that time of year when most employees could be at risk of 'enjoying' a networking or firm social event a little too much for their own good. It's important to remember where to draw the line. "Many things can fall under the category of 'improper conduct', depending upon the policies of the employer and the laws of the country in which you are working," said Vickers‐Willis. ‘so it's important to know the laws, policies procedures and expectations of the place where you're working as well as of your host in advance. Use commonsense and don't assume that just because you hold particular opinions or beliefs, they are shared by everyone else in attendance. If alcohol is being served, keep your intake moderate and manageable so your judgement isn't impaired," she said. However, Vickers‐Willis warns that not turning up to the firm Christmas function in an attempt to bypass any awkward moments could be a career blunder in itself. "Do attend if you can," she added. "It's a great opportunity for everyone to engage with each other in a less structured and busy environment and build those relationships that are so important to enjoying our time at work." "Make sure you enjoy yourself, but also conduct yourself professionally at all times. Although office parties are social events to reward employees and raise morale, they remain strictly business events. Your colleagues have long memories!" 49
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- 52. Salary Results: COMMERCE AND PRIVATE PRACTICE ‐ SINGAPORE POSITION 1‐4yrs' exp 4‐8 yrs' exp Vice president/hod Chief Legal Officer 2008 ‐ $400‐500k+ 2009 ‐ $400‐500k+ Litigation and Dispute 2008 ‐ $48.‐.90k 2008 ‐ $90.‐ 2008 ‐ $170.‐.400k+ Resolution .170k 2009 ‐ $50‐90k 2009 ‐ $95.‐ 2009 ‐$175.‐.400k+ .175k Intellectual Property and 2008 ‐ $48.‐.95k 2008 ‐ $95.‐ 2008‐$180.‐.400k+ Technology .180k 2009 ‐ $50.‐.95k 2009 ‐ $95.‐ 2009 ‐ $185.‐.400k+ .185k Financial Services 2008 ‐ $50.‐.100k 2008 ‐ $100.‐ 2008 ‐ $190.‐.400k+ .190k 2009 ‐ $50.‐.100k 2009 ‐ $100.‐ 2009 ‐ $190.‐.400k+ .190k Corporate Real Estate 2008 ‐ $48.‐.90k 2008 ‐ $90.‐ 2008 ‐ $160.‐.400k+ .160k 2009 ‐ $50.‐.90k 2009 ‐ $90.‐ 2009 ‐ $165.‐.400k+ .165k Corporate and Commercial 2008 ‐ $48.‐.95k 2008 ‐$95.‐ 2008 ‐ $180.‐.400k+ .180k 2009 ‐ $50.‐.95k 2009 ‐ $95.‐ 2009 ‐ $185.‐.400k+ .185k Paralegal 2008 ‐$30.‐.50k 2008 ‐$50.‐ 2008 ‐ $75.‐.100k .75k 2009 ‐ $30.‐.50k 2009 ‐ $50.‐ 2009 ‐ $75.‐.100k .75k *SOURCE: Robert Walters Salary Survey 2009 ‐ http://www.robertwalters.com.au/ H H 52
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- 57. Useful Links &Resources Mentioned Within This E-Book Legal Employment: http://www.legaljobscentre.com – Legal Jobs Centre Legal News: http://au.legalbusinessonline.com – Australasian Legal Business Legal Training / CPD Points: http://www.albmasterclass.com – ALB Masterclass series Additional Resources: http://www.robertwalters.com.au/ - Robert Walters http://www.dignityatwork.org/advice/what-is-bullying/ - Dignity at Work http://www.boston.com/jobs/news/articles/2008/05/14/overcoming_conflict_in_the_work place/ - The Boston Globe http://www.flyingsolo.com.au – Flying Solo http://www.cvgraduate.com – CV Graduate http://www.hrmasia.com – Human Resources Management Asia Other Australian Key Media Sites: http://www.keymedia.com.au http://www.yourmortgage.com.au http://www.yipmag.com.au http://www.brokernews.com.au Follow ALB on Twitter at http://www.twitter.com/ALB_magazine