Storming the Barricade: Break in and Succeed in New York’s Legal Market

Storming the Barricade:

Break in and Succeed inNew York’s Legal Market

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


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


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


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


Why New York? (cont’d)

• No red carpet• Expect significant up-front investment• War for talent with more players• Fewer mid-size acquisition targets


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


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]


“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


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


From theory to practice

• Two prominent entrants into the New York market– Latham & Watkins– Clifford Chance

• Principles of success• Lessons learned


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


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



• 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



• Minimal conflicts = maximum referrals + laterals– Quinn Emanuel– Bois Schiller– McKool Smith– Allegaert, Berger & Vogel



• 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



• 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


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


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



• 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



• Minimal conflicts• Attract top-tier laterals from leading firms• “Culture of managed risk”



Robust, proactive marketing• Communications campaign built around core strengths and

firm’s notable work• Leverage rich network• Build media relationships• Communicate across platforms



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


The list goes on…

• Chapman and Cutler (Chicago)– Started NY office with one attorney, now nine

• Rawle & Henderson (Philadelphia)– Started with six, now 21


…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]


…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


Lessons learned

• Realistic playing field• Long-term vision• Conflict minimization• Strategic laterals• Client acquisition, retention and expansion• Market core strengths• Campaign communications


Are you ready?

Any questions?

Contact information

• Roger J. Cohen– 973-632-4694– [email protected]

• Ellen C. Auwarter– 646-382-6938– [email protected]


Documents

Storming the Barricade: Break in and Succeed in New York’s Legal Market