Law Firm of the Year – why they made the shortlist

As previously mentioned, this year Legal Week's editorial team has taken a more hands-on role in helping to draw up the shortlists for the 2009 British Legal Awards. The clearest example of that is for arguably the biggest award of the night, Law Firm of the Year, for which there are no submissions. Instead, the editorial team have drawn up the shortlist for our judging panel of senior clients and industry veterans.

To that end, we have produced a briefing note outlining the reasons for the seven firms' selection. As part of that process, I'm being delivered to the judges next week to be quizzed to establish whether I know what I'm talking about. And in the interests of transparency, we're publishing a slightly edited-down version of the initial briefing note. If any of the firms want to point out any howling omissions on our part, please drop me a line before Wednesday morning. And please remember, a bribe is always nice this close to Christmas.

Allen & Overy

In a good year for the magic circle, Allen & Overy (A&O) stood out for its considered response to brutal market conditions. Though some may question the depth of the cuts A&O made in its firmwide restructuring, what is undeniable is that the firm came up with a comprehensive and coherent solution to extraordinary market conditions. The firm has well-regarded and effective management, while - according to our research - staff morale has also been relatively well maintained given the context of the firm's restructuring. A&O is also distinguished by an imaginative outlook. Practice performance and financial results have continued to be strong.

Norton Rose

A good relative financial performance in 2008-09 topped off a strong three-year run for Norton Rose. The firm's attempts to regroup from a difficult position six years ago have clearly borne fruit, with Norton Rose showing an astute eye for developing and retaining talent. In addition the firm has shown flair and imagination in some of its decisions, notably its move to usher in a comprehensive flexi-time programme for staff rather than make redundancies. The firm also made a promising and bold move into Australia with the Deacons tie-up. It continues to be one of the top-ranked firms in Legal Week's Employee Satisfaction Report, with some of the most engaged staff in the top 50. An excellent all-round performance and a firm that gives every impression of going on to better things.

Bird & Bird

Bird & Bird has enjoyed excellent financial performance in recent years, during which time the firm has managed to combine substantial international expansion with solid profitability. The firm has also shown daring in repositioning itself as the only pan-European TMT practice, more than doubling revenues over five years in the process. Despite this furious expansion there is little sign of discord or friction, an achievement in itself. The firm boasts solid staff morale and has also managed consistent retention of partners.

Clyde & Co

A classy insurance player that consistently delivers. Not only was the firm one of the best performers in 2008-09, it is also a standout performer from a five-year perspective, nearly doubling revenues over the period. The firm has made some interesting and by most accounts successful international moves. There are some criticisms of the firm's strategy outside litigation, and you could argue the real test will come in a market less favourable to their practice, but it remains a very strong candidate.

Stephenson Harwood

This year really confirmed the turnaround of Stephenson Harwood, which was considered virtually a basket case a few years back. Chief executive Sunil Gadhia is viewed as having led the firm well before recently standing down, bringing clarity to the firm's purpose. Financial performance has also been dramatically improved to the point that the firm has gone from being one of the worst performers in its class to become the best. The firm has also given the impression of being comfortable in its own skin with a clear sense of the market it is focusing on. As a turnover stock, even Norton Rose can't match this firm.

Cleary Gottlieb Steen & Hamilton

A superb firm that does not get its fair dues as it doesn't fit in the white shoe box. Excellent partners, a strong network in Europe and excellent instructions. Cleary's financial results were very strong in 2008 in a market in which many New York firms struggled. The firm always delivers in a low-key manner, and has pulled off a far more convincing programme of international expansion than many other US firms such as Latham & Watkins that have received more credit and attention. Cleary has a proven strategy that has delivered over the long haul.

Kennedys

Commercial litigation and insurance firm Kennedys entered the UK top 50 after significant UK expansion saw it achieve a 30% hike in turnover during 2008-09. The firm's revenue hit £67.3m over the last financial year, up from £51.5m the previous year - giving it the biggest revenue growth in the top 50. It was also among the fastest growing by profits per equity partner with a 16% increase from £300,000 to £350,000. 2008-09 marked the culmination of years of investment by Kennedys, which decided some 15 years ago to focus its business around dispute resolution.

Click here for more information on this year's awards.

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