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David Childs: A world of opportunities

Author: David Childs

Published: 13/09/2007 00:00

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The view of the market seems to be that the top few law firms are pulling rapidly ahead of the competition. That commanding position is being driven by a global strategy and business model that, for Clifford Chance (CC), is now maturing after 20 years of investment and planning. We are the only international firm with significant resource in all three principal markets — the US, Europe and Asia. This is in itself a strong differentiator and one that we believe provides us with clear competitive advantage.

Back in the 1980s, CC set out a strategy to follow its clients’ global approach. We were probably the first law firm to act on the perception that clients were becoming global in their business plans and would need co-ordinated full-service legal advice across the markets in which they were operating. To that end we have developed global practices across the full service range. Rather than operating on a ‘hub and spoke’ basis — with the majority of lawyers in one market and other offices radiating out from, and managed by, a home centre — we have followed a truly international strategy. We now have more lawyers outside the UK than within it and the greater part of our business — some 60% — is generated in those international markets. But globalisation is still really only just beginning: what are the forces shaping the next steps in the development of our business? Four major themes come to mind.

Continued globalisation

Building on our model, we will continue to put more resources into the US as well as focusing strongly on the emerging markets. We have already developed a significant US practice — about three times the size of our magic circle competitors — and, through lateral hires and aggressive recruitment, intend to build our presence and strength in depth there. We have also built the largest Central and Eastern Europe network of all our competitors, a region which is now a thriving part of the firm and where we will continue to invest. Other parts of the world are very much on our growth radar. We will continue to grow our offices in China and, when regulations allow, we will be ready to develop a presence in the key market of India.

Convergence

Operating on an international basis is far more than a geographical proposition. We will continue to drive convergence of techniques and standards across all our offices. Global clients expect the same levels of service wherever we are supporting their business, and we are instilling globally consistent styles and standards in the provision of internal as well as external services. This means ensuring that we build a recognisably ‘Clifford Chance’ way of doing things that applies to everything we do, everywhere we operate.

Working in a flatter world

One of the enablers of that convergence is the ability to perform services for a user in, say, the US or UK from the other side of the world. This provides us with significant possibilities in terms of economies of scale and efficiencies. To that end we will continue to develop our global shared services centre in Delhi that became operational this year. We currently employ more than 50 staff in the city, with plans to double this number over the next six months. We are also investigating ways to expand the range of services that we are able to provide so that we can continue to leverage cost efficiencies and at the same time boost our ability to provide greater responsiveness and better business continuity to our clients.

People

Of course, underpinning all our strategic aims is our ability to attract and retain the right people. And the war for talent shows no sign of abating. We will continue to work hard on differentiating ourselves as the natural first choice firm for graduates. Our appointment of a people partner, with global responsibility for looking at our people policies and practices, and a partner leading development and learning globally, demonstrates our commitment to this, as does the creation of the CC ‘Principles’ that help further articulate and cement the bonds that unite all of us with a global vision of what we are as a firm and where we want to be.

David Childs is managing partner of Clifford Chance.

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