Partners at leading City firms face an uphill struggle to win senior roles after a career in law, with the overwhelming majority believing commercial lawyers suffer from an image problem in the wider business community.
Results of the latest Legal Week Big Question survey found that 94% of respondents believe commercial lawyers have some level of image problem within the business community, with around one third of respondents claiming it to be a ‘considerable’ problem.
Despite protests by City partners that they are taking a more commercial approach to work than before, the survey found that many believe their efforts have gone unnoticed by clients.
Just under two-thirds (62%) said there is ‘not that much’ perception within the business community of lawyers having become more commercial in their approach, with a further 5% claiming the profession is still seen as divorced from business. Only a third said they felt lawyers are seen to have become more business-literate in recent years.
However, almost 60% of respondents said they see themselves having a career in business after retiring from the law, with 19% stating it as a major ambition and 40% saying they ‘probably’ will have a further career in business. In contrast, only 40% either ruled it out entirely or dismissed it as unlikely.
Anthony Cann, former senior partner of Linklaters and now a non-executive director at Smith News and a chairman of the board of trustees of national disfigurement charity Changing Faces, said: “You may find that people are moving into management roles earlier and will not return to fee earning practice. They will then move into executive roles with businesses. However, people do not like to think lawyers are automatically qualified to enter into the business world.”
Bill Knight (pictured, right), president of the City of
Respondents were generally upbeat about the opportunities available to them outside the law, with 62% of the lawyers surveyed believing there are generally enough opportunities, and almost 9% believing they are ‘greatly valued’ within the business world.
Against this, 28% argued that experienced lawyers have little opportunity to enter business, with 2% saying trying to get a post is like ‘banging your head against a brick wall.”
Despite the fact that more than half of those surveyed see themselves pursuing a career outside the law on retirement, respondents were divided about how suitable lawyers are for non-legal roles.
Sixty-one percent said lawyers were either ‘very’ or ‘considerably’ suited to non-executive roles in major companies after retirement.
Shearman & Sterling structured finance partner Julian Tucker said: “Lawyers have organisational skills and insight into the corporate world and are often giving advice on a strategic basis, so they do bring these skills to the table. Many of the world’s top bankers trained as lawyers.”
However, the number doubting partners’ suitability increased when questioned about lawyers taking up executive roles in companies. Only a third of respondents thought lawyers were either very or considerably suited to executive roles, with the overwhelming majority (65%) saying it would only be appropriate in some circumstances.
Earlier this year, the appointment of former UBS general counsel Peter Kurer as chairman of the Swiss banking giant came under extensive criticism from the banking community.
Cripps Harries Hall partner Ed Weeks (pictured, left) commented: “As law firms become more like their corporate clients in structure and mindset, the transition from lawyer to business person will become easier. However, at present it is a leap too far for most lawyers.”
One senior finance partner at a
The survey results come against a backdrop of firms trying to introduce support systems for partners looking for career opportunities outside the law. As reported by Legal Week earlier this month Freshfields, Clifford Chance and Simmons & Simmons are among the firms looking at offering guidance to partners.
What the partners said
Stick to the day job
“Most lawyers wouldn't know 'commercial' if it hit them between the eyes. There's still far too much point-scoring, time wasting and a lack of understanding of the real commercial drivers underlying most commercial transactions. In part the approach is driven by the focus on time recording rather than value-based billing.”
“Most lawyers are hopelessly uncommercial.”
“Lawyers who understand and can add value to their clients’ businesses will always be valued. Lawyers who are just lawyers should not have business aspirations .”
“Lawyers have always claimed to be ‘commercial’. But this often means no more than going beyond just correcting typos in documents and arguing for or against the insertion of the words 'reasonable' and 'material' in documents. This is not what clients regard as being commercial.”
“Not many lawyers get the experience or exposure to enable them to switch from advisors to principals.”
"Lawyers tend to be good at telling other people what to do but are not generally very good at following their own advice in their own businesses or confronting and dealing with issues. It is hardly surprising, therefore, that industry is sceptical about what lawyers have to offer in an executive role.”
Seize the day
“Increasingly we are selling commercial judgment and experience. Lawyers should be looking to play commercial roles in their client businesses before they retire.” Matt Meyer, Taylor Vinters
“We run significant businesses in our own right. This isn't as widely recognised as it should be.”
“There is no doubt that law firms have come a long way in recent years in terms of their business acumen. Any law firm that wants to be successful today has to view itself as a business first and a law firm second, particularly with the changes that are arriving with the Legal Services Act 2007. As a result, partners retiring from legal practices are well equipped to take on roles in businesses outside the law.”
“Some businesses are struggling to find non-execs and lawyers should be well placed to take on this role."
“Some specialist areas lend themselves to business involvement. Generalists will have a harder time.”
“There is a myth (fostered to some extent by the legal press) that only those lawyers who practice in corporate departments are suitable for non-executive roles. This seems vastly unfair to lawyers in commercial property, commercial litigation and other disciplines who are just as commercial on a daily basis.”
A battle worth fighting
“While individual firms may recognise and value the commercial strengths of their own lawyers, that is considered to be exceptional and is not applied to the profession as a whole, particularly at the regulatory and contentious ends of the legal spectrum.” Roger Wakefield, Nabarro
“The lack of lawyers in key business positions just serves to emphasise the difference between the UK and the USA. In the US everything is run by lawyers, whilst here in the UK it is almost entirely driven by accountants, with predictable emphasis on detail to the detriment of vision.”
“There are still a number of very uncommercial lawyers around who tarnish out general reputation.”
“The role of a corporate lawyer has changed over the last 20 years. Clients don't just want document crunchers, they want someone who is also part of the business team and contributes to the deal rather than just writes the words.”
“There are a number of lawyers who started in business before moving to law who have a genuine commercial approach and understanding of business. This is not always seen with lawyers who have followed the standard academic route.”
“It will be difficult for lawyers to recover the ground already lost to accountants.”
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