70 LEXPERT MAGAZINE
|
JULY/AUGUST 2016
Clifford Proudfoot is the Managing Partner at Lawson Lundell LLP.
He can be reached at cproudfoot@lawsonlundell.com.
THE GLOBAL CONSOLIDATION of law firms continues, and
Canadian firms are not being le behind. In the past year, there
were a record 91 mergers, according to a recent report from Altman
Weil. is number included several Canadian firms that merged
across borders to become international. Law firm mergers have been
the subject of much media coverage. At times the trend towards
globalization seems inevitable. And yet there are some firms, ours
included, that buck this trend by maintaining their independence.
So what does it mean to be an independent regional firm? It does
not mean the firm's work is limited to a region, but rather that we
are focused on a region. e reasons for main-
taining this position are many: enhanced un-
derstanding of the issues faced in our markets;
consistency in approach; limited bureaucracy
resulting in agility; the ability to contain costs
for clients; and a streamlined approach to po-
tential conflicts. Many clients also believe that
diversifying their legal service providers across
jurisdictions can increase the quality of services provided, at market
costs for each jurisdiction and not at the highest common rates.
UNDERSTANDING THE MARKET
Focusing efforts geographically in western and northern Canada
makes it easier to align our partners' approach to issues. At inde-
pendent regional firms like ours, the views of partners still matter
and are highly valued. is focus enhances the creation of business
strategies and ensures that growth is achieved at a sustainable rate.
We have, for example, chosen to expand our
Calgary office despite the market downturn.
Focusing on client needs and carving out
and maintaining a market position by ensur-
ing the firm possesses the skills and expertise
to serve and expand the client base are of
overriding importance to a regional focus.
FOCUS ON AGILITY
A recent study by Gulland Padfield found
that most law firms merge for defensive
rather than strategic reasons, and that the
decisions to merge were not driven by client
needs. Working closely with core clients and
expanding market share in a sustainable way
ensures longevity and stability. In our case,
we've focused on taking care of our business
at home ahead of expanding, and on ensuring we have the infra-
structure to support expansion efforts. We've done so by maintain-
ing a streamlined management structure, by fostering teamwork
and by ensuring we have a careful succession plan in place.
We have chosen a size and expansion rate that works for us and
our clients. Having a management team that includes members of
each of our offices and that has the ability to make decisions quickly
is one of the advantages of a geographically focused approach.
MINIMIZING CONFLICTS
One of the biggest advantages of a geographically focused firm is the
reduced potential for conflicts. International firms with hundreds,
or even thousands, of lawyers will be more likely to encounter legal
and business conflicts, which will test loyalties to clients and raise
concerns about the protection of confidential information. Post-
merger, the sheer number of lawyers working at some of these firms
means that conflicts are more likely, and that identifying and vet-
ting these conflicts have the potential to be thorny. At our firm, we
have a sophisticated process that can identify any potential conflict
easily, and we can oen resolve any conflict expeditiously and to the
satisfaction of all parties involved.
is is not to say that law firm mergers in this country have not
been effective, or that there is no place for larger international firms.
But there are multiple law firm models, including the regional plat-
form, with advantages particular to each.
ILLUSTRATION:
CLARE
MALLISON
Why Independent Regional
Law firm mergers are a phenomenon, but some clients are better served by staying close to home
>
MOST LAW FIRM
MERGERS ARE FOR
DEFENSIVE REASONS.
THE DECISION IS
OFTEN NOT DRIVEN
BY CLIENT NEEDS
| COLUMNS |
BY CLIFFORD PROUDFOOT
CHANGE AGENT
