storming the barricade: break in and succeed in new york’s legal market
TRANSCRIPT
Storming the Barricade:Break in and Succeed in New York’s Legal Market
February 2, 2010
Ellen AuwarterRoger Cohen
Your presenters:Ellen Auwarter and Roger Cohen
Principals
• Deep bench in law firm and professional services• More than 40 years combined experience
autoKthonous/IVS/BrightTALK 3
Roger J. Cohen
autoKthonous/IVS/BrightTALK 4
Business marketer and communicator who for more than three decades has achieved successful results in law, consulting, journalism, government and politics.
• White & Case LLP: global marketing and communications
• Consultant to companies facing public opinion and issue management crises
• Port Authority of NY & NJ: Policy official, business planner and communicator
• Pulitzer-nominated journalist at the Bergen Record
Ellen C. Auwarter
autoKthonous/IVS/BrightTALK 5
Marketing, business development and communications executive working with professional services firms for more than 20 years.
• Lovells LLP’s New York office• Patterson Belknap Webb & Tyler LLP• Deloitte & Touche LLP’s national banking and
finance industry practice• New York New Media Association• Practiced litigation and employment law
Our firm
So, what’s with that name?
• Authochthonous– Native to the place where found; indigenous
• autoKthonous Market Solutions– Unique, game-changing solutions to client-specific market
challenges – Opportunities based on strategic situational analysis
autoKthonous/IVS/BrightTALK 6
Why New York?
• New York — most lucrative and difficult market• Failed attempts by top-tier firms to become more
than a mere outpost or blip on the radar• New opportunities for enterprising “out-of-towners“
to secure market share
autoKthonous/IVS/BrightTALK 7
Why New York? (cont’d)
• No red carpet• Expect significant up-front investment• War for talent with more players• Fewer mid-size acquisition targets
autoKthonous/IVS/BrightTALK 8
Why New York? (cont’d)
• New York presence gives worldwide credibility• Overseas clients stop in New York first, and your
clients may already be there• Epicenter of global finance• Beehive of legal and commercial activity, people and
ideas
autoKthonous/IVS/BrightTALK 9
Why New York NOW?
“[T]he legal profession seems likely to undergo the most profound structural changes. For the first time … the corporate legal departments that hire law firms are under great budgetary pressure, and are thus demanding much better value from them.” [Jan 21, 2010]
autoKthonous/IVS/BrightTALK 10
“The Death of Big Law”L. Ribstein, University of Illinois College of Law
• Outburst of experimentation• Billable hour in doubt– http://papers.ssrn.com/sol3/papers.cfm?
abstract_id=1467730
autoKthonous/IVS/BrightTALK 11
From challenge to opportunity
• Top-tier talent may be available as large firms adopt a “bigger is best” business model
• Smaller, more nimble, firms can offer:– Lower rates– Fee flexibility– Freedom from conflicts – Challenging matters for great clients
autoKthonous/IVS/BrightTALK 12
From theory to practice
• Two prominent entrants into the New York market– Latham & Watkins– Clifford Chance
• Principles of success• Lessons learned
autoKthonous/IVS/BrightTALK 13
Contrasting trajectoriesNew York Office attorney headcounts
050
100150200250300350400450500
Latham & Watkins Clifford Chance
NY Opening
Today
Success principles
• Play to your strengths– Latham – top-tier PE and high-yield– Greenberg Traurig – middle-market in real estate,
entertainment, start-ups – Sonnenschein – also middle-market, added finance,
banking and litigation
autoKthonous/IVS/BrightTALK 15
Success principles (cont’d)
• Have a long-term vision– Reed Smith – from six to 130– Dechert – global ambitions, New York growth– Haynes and Boone – quiet opening, poised for expansion
autoKthonous/IVS/BrightTALK 16
Success principles (cont’d)
• Bring clients or buy them– Latham – client Michael Milken brought Drexel– Dechert – acquired Hays & Landsman and client Getty Oil– Baker Botts – absorbed Shea & Gould spinoff and obtained
Liberty Media
autoKthonous/IVS/BrightTALK 17
Success principles (cont’d)
• Minimal conflicts = maximum referrals + laterals– Quinn Emanuel– Bois Schiller– McKool Smith– Allegaert, Berger & Vogel
autoKthonous/IVS/BrightTALK 18
Success principles (cont’d)
• Strategic hires/laterals– Bracewell chairman met Giuliani @ RNC– Linklaters – Larry Byrne and a dozen White & Case
litigators– Jenner & Block – Richard Ziegler, GC of 3M Corp.,
previously Cleary, and other top-tier talent
autoKthonous/IVS/BrightTALK 19
Success principles (cont’d)
• Market and communicate proactively– Identify and spotlight core strengths (practices, people)– Promote successes and why they are important– Focus on client work– Leverage media– Use campaign approach
autoKthonous/IVS/BrightTALK 20
Pitfalls, sand traps and potholes
• Culture clashes– CC/Rogers & Wells
• Outsize ambitions– Heller Ehrman
• The sacrosanct hourly rate– Firms slow to accept this as opportunity
autoKthonous/IVS/BrightTALK 21
A New York success story
• Texas firm highly regarded for courtroom excellence in commercial litigation and IP
• No New York presence until opening with one lawyer in 2007
• Built reputation on winning more major top-100 jury verdicts than any other firm in the country
autoKthonous/IVS/BrightTALK 22
A New York success story
• Long-term vision and strategic focus:– Not to become a behemoth, but to “punch well above its
weight”– Focus on practices key to New York market – patent and
trademark litigation, white collar, financial institution and commercial litigation and bankruptcy
– Leverage national success to amplify New York presence
autoKthonous/IVS/BrightTALK 23
A New York success story
• Minimal conflicts• Attract top-tier laterals from leading firms• “Culture of managed risk”
autoKthonous/IVS/BrightTALK 24
A New York success story
Robust, proactive marketing• Communications campaign built around core strengths and
firm’s notable work• Leverage rich network• Build media relationships• Communicate across platforms
autoKthonous/IVS/BrightTALK 25
A New York success story
Results: accelerating momentum• More than 20 lawyers, continuing expansion• Added new practices, white collar and bankruptcy,
based in New York• Investment of key principals’ time• New office space
autoKthonous/IVS/BrightTALK 26
The list goes on…
• Chapman and Cutler (Chicago)– Started NY office with one attorney, now nine
• Rawle & Henderson (Philadelphia)– Started with six, now 21
autoKthonous/IVS/BrightTALK 27
…And on…
• Robins Kaplan Nabs Three From Lovells, Opens NYC Office
• Robins, Kaplan, Miller & Ciresi, the ultra-profitable Minneapolis-based firm, has lured three lawyers from Lovells and will set up shop in New York City for the first time, according to sources familiar with the matter. The new arrivals will officially join Robins Kaplan Friday. [AmLaw Daily, Jan 28, 2010]
autoKthonous/IVS/BrightTALK 28
…And on…
• “…the litigation-heavy firm has been looking to move into New York after building up strong relationships with New York-based corporate clients.”– http://amlawdaily.typepad.com/amlawdaily/
2010/01/lovellsrobins.html
autoKthonous/IVS/BrightTALK 29
Lessons learned
• Realistic playing field• Long-term vision• Conflict minimization• Strategic laterals• Client acquisition, retention and expansion• Market core strengths• Campaign communications
autoKthonous/IVS/BrightTALK 30
Contact information
• Roger J. Cohen– 973-632-4694– [email protected]
• Ellen C. Auwarter– 646-382-6938– [email protected]
autoKthonous/IVS/BrightTALK 32