STRATEGIC LAW FIRM STRATEGIC LAW FIRM MANAGEMENT 2009MANAGEMENT 2009

BOUTIQUE LAW FIRMSBOUTIQUE LAW FIRMS Presented byPresented by

Marcus N BeveridgeMarcus N Beveridge

Principal, Queen City Law – Principal, Queen City Law – www.queencitylaw.co.nzwww.queencitylaw.co.nz

LexisNexis Conference 17 & 18 September 2009LexisNexis Conference 17 & 18 September 2009

CONTENTSCONTENTS 1.1. What is a Boutique Law firm?What is a Boutique Law firm? 2.2. Common Traits of Successful Common Traits of Successful

BoutiquesBoutiques 3.3. Boutiques v Large FirmsBoutiques v Large Firms 4.4. Current Market ForcesCurrent Market Forces 5.5. Increasing Place of Boutiques/Growth Increasing Place of Boutiques/Growth

of of BoutiquesBoutiques 6.6. Keys for Growth/SuccessKeys for Growth/Success 7.7. Boston LegalBoston Legal 8.8. In SummaryIn Summary

1. What is a Boutique Law 1. What is a Boutique Law Firm?Firm?

““Boutique” French in origin (botica) Boutique” French in origin (botica) “Boutiques” highly specialized or “Boutiques” highly specialized or fashionable store often dealing in elite and fashionable store often dealing in elite and unique items. Meaning has spread to unique items. Meaning has spread to businesses offering tailored products businesses offering tailored products /services for a limited market (butcher / /services for a limited market (butcher / lingerie boutique).lingerie boutique).

A boutique law firm is a law firm which A boutique law firm is a law firm which specialises in a specific aspect of the law, specialises in a specific aspect of the law, rather than offering general legal services rather than offering general legal services and assistanceand assistance..

Such firms are popular with those who are involved Such firms are popular with those who are involved in complex branches of law such as maritime law, in complex branches of law such as maritime law, insurance law, immigration law, intellectual insurance law, immigration law, intellectual property, litigation, leaky building, property property, litigation, leaky building, property development and environmental law. development and environmental law.

The lawyers at boutique law firms pride themselves The lawyers at boutique law firms pride themselves on providing exemplary service in their field of on providing exemplary service in their field of interest.interest.

The size of a Boutique Law Firm is not a given. The size of a Boutique Law Firm is not a given.

• Arguably Specialised Multi-National practices specialising Arguably Specialised Multi-National practices specialising in say Maritime Law or Aviation Law could be considered in say Maritime Law or Aviation Law could be considered Boutique as “Boutique can apply to firms that focus on Boutique as “Boutique can apply to firms that focus on particular niche areas of law regardless of size”.particular niche areas of law regardless of size”.

• Best international definition = “A firm with a single, or a Best international definition = “A firm with a single, or a small number of closely related, practice area(s) or sector small number of closely related, practice area(s) or sector focus(es) irrelevant of size”.focus(es) irrelevant of size”.

• Specialised Litigation Practices such as Shortland Specialised Litigation Practices such as Shortland Chambers or Bankside Chambers could equally be Chambers or Bankside Chambers could equally be considered boutique as surprised as they may be to hear considered boutique as surprised as they may be to hear this given their focus is singular.this given their focus is singular.

• However, when most people consider Boutique However, when most people consider Boutique firms in a New Zealand context, specialised firms in a New Zealand context, specialised smaller practices with strong reputations in their smaller practices with strong reputations in their areas of specialisation come to mind.areas of specialisation come to mind.

• And they are on the increase.And they are on the increase.• Names such as Chen Palmer (Public Law), Names such as Chen Palmer (Public Law),

Chancery Green (Environmental Law), Knight Chancery Green (Environmental Law), Knight Coldicutt (Property Law), Queen City Law Coldicutt (Property Law), Queen City Law (Property/Immigration), McElroys, Jones Fee, (Property/Immigration), McElroys, Jones Fee, (Insurance Law), Kiely Thompson Caisley (Insurance Law), Kiely Thompson Caisley (Employment Law), A J Park, James & Wells (IP (Employment Law), A J Park, James & Wells (IP Law), Mayne Wetherell (Finance), Keegan Law), Mayne Wetherell (Finance), Keegan Alexander, Lowndes Associates, Dawson Harford Alexander, Lowndes Associates, Dawson Harford Partners, Grimshaw & Co. Blackman Spargo, all Partners, Grimshaw & Co. Blackman Spargo, all spring to mind.spring to mind.

• ““If you have a heart problem, you go to a If you have a heart problem, you go to a cardiologist; a brain issue – a neurologist, the cardiologist; a brain issue – a neurologist, the same goes for lawyers”.same goes for lawyers”.

The New Zealand Law Awards definition of a The New Zealand Law Awards definition of a Boutique Law Firm is:Boutique Law Firm is:

One that has 1 to 5 partners;One that has 1 to 5 partners;

Practices in one, or a limited number of specialist Practices in one, or a limited number of specialist area(s) of practice;area(s) of practice;

Provides Provides excellence in client serviceexcellence in client service;;

Possesses leading expertise in advising in its sole Possesses leading expertise in advising in its sole area or one/some of its specialist areas of practice.area or one/some of its specialist areas of practice.

Excellence in client service is defined as:Excellence in client service is defined as:

• Providing proactive, effective, timely, and strategic legal advice;Providing proactive, effective, timely, and strategic legal advice;

• Having a genuine understanding of the client’s business and Having a genuine understanding of the client’s business and their market sector, reflected in commercially pragmatic their market sector, reflected in commercially pragmatic solutions;solutions;

• Being aware of cross-disciplinary impacts, with the ability to Being aware of cross-disciplinary impacts, with the ability to advise on them or to refer on where necessary;advise on them or to refer on where necessary;

• Being responsive to the client’s need for speedy and cost-Being responsive to the client’s need for speedy and cost-effective resolution;effective resolution;

• Advising as to the client’s legal and practical Advising as to the client’s legal and practical options with result-focused professionalism and options with result-focused professionalism and clarity; andclarity; and

• Having up-to-date knowledge of developments in Having up-to-date knowledge of developments in legal, policy, and other relevant matters.legal, policy, and other relevant matters.

This definition applies equally to Large, Mid-sized This definition applies equally to Large, Mid-sized and Boutique firms. The same definition applies to and Boutique firms. The same definition applies to all of the specialist awards (family, public, all of the specialist awards (family, public, construction, RMA, IP, etc)construction, RMA, IP, etc)

SPECIALIST LAW FIRMSSPECIALIST LAW FIRMS If you are a specialist law firm and you are If you are a specialist law firm and you are

offering something that is not needed right now – offering something that is not needed right now – then you may be struggling. However if you are then you may be struggling. However if you are an insolvency or litigation boutique you should be an insolvency or litigation boutique you should be doing well.doing well.

Boutique firms who offer some sort of speciality Boutique firms who offer some sort of speciality such as trademarks, patent law, employment law, such as trademarks, patent law, employment law, immigration etc., tend to be most successful.immigration etc., tend to be most successful.

Some boutique firms, particularly those who offer Some boutique firms, particularly those who offer a range of services are well positioned to provide a range of services are well positioned to provide better value for money. better value for money.

Boutique firms with lower overheads and Boutique firms with lower overheads and significantly fewer costs are almost entirely reliant significantly fewer costs are almost entirely reliant on the quality and reputation of their people.on the quality and reputation of their people.

““All law firms have to offer is their people and their All law firms have to offer is their people and their relationships with clients. The rest is not worth relationships with clients. The rest is not worth anything at all if you don’t have the people.”anything at all if you don’t have the people.”

““It all depends on whether your firm can hold It all depends on whether your firm can hold together during the tough times – or whether you together during the tough times – or whether you are just out to make a buck.”are just out to make a buck.”

There is an increasing need for smaller firms There is an increasing need for smaller firms because the super-sized practices tend to go after because the super-sized practices tend to go after many of the same large clients.many of the same large clients.

Boutique law firms represent a variety of clients, all Boutique law firms represent a variety of clients, all the way from huge corporations to individuals.the way from huge corporations to individuals.

Boutique firms don’t try to be all things to all Boutique firms don’t try to be all things to all people.people.

Selective narrow practice areas allow lawyers more Selective narrow practice areas allow lawyers more personal freedom.personal freedom.

““Although I don’t have the same infrastructure as I Although I don’t have the same infrastructure as I did at Clifford Chance, you get a lot of time back did at Clifford Chance, you get a lot of time back when you leave a big firm. The amount of internal when you leave a big firm. The amount of internal time you spend in a large firm is enormous.”time you spend in a large firm is enormous.”

2. COMMON TRAITS OF 2. COMMON TRAITS OF SUCCESSFUL BOUTIQUESSUCCESSFUL BOUTIQUES

(i)(i) Strong charismatic leadershipStrong charismatic leadership

(ii)(ii) High profile individuals High profile individuals

(iii)(iii) Often considered leading New Zealand Often considered leading New Zealand practitioners in their area of specialisationpractitioners in their area of specialisation

(iv)(iv) Experienced Spin Doctors in media and Experienced Spin Doctors in media and often sought after for sound-bytes etc., often sought after for sound-bytes etc.,

(v)(v) Innovative and entrepreneurial Innovative and entrepreneurial

(vi)(vi) Punch well beyond their weight;Punch well beyond their weight;

(vii)(vii) Don’t blink if required to take on big Don’t blink if required to take on big guys;guys;

(viii)(viii) In some cases other people in In some cases other people in practice practice must tie their harpoons to must tie their harpoons to Alpha owners Alpha owners or outski (FIFO);or outski (FIFO);

(ix)(ix) Very strong marketeers;Very strong marketeers;

(x)(x) It is the man not the company;It is the man not the company;

(xi)(xi) Often have very cool offices, Often have very cool offices, websites etc.,websites etc.,

BOUTIQUE THEREFORE BOUTIQUE THEREFORE DENOTES:DENOTES:

Sexy Sexy FluidFluid SpecialisedSpecialised FastFast Client-centricClient-centric All I need is my lap-top and my All I need is my lap-top and my brain (cowboy lawyers working out brain (cowboy lawyers working out of their car boots)of their car boots) Knowledge is everythingKnowledge is everything

3. BOUTIQUE v LARGE FIRMS3. BOUTIQUE v LARGE FIRMSFactors which make some Boutique firms inherently competitive Factors which make some Boutique firms inherently competitive

includeinclude

SpecialisationSpecialisation

Lower overheads / fewer costsLower overheads / fewer costs

Speed (delivery / decisions)Speed (delivery / decisions)

Flexible billing options – lower cost Flexible billing options – lower cost structure, more flexible on payment terms structure, more flexible on payment terms (when you get paid – pay me – harder on (when you get paid – pay me – harder on large firms given big wage bill)large firms given big wage bill)

Inherent Client-centric focus of BoutiquesInherent Client-centric focus of Boutiques

Personalised service v ping pong ballPersonalised service v ping pong ball

Inherent skill base of individuals rather than the Inherent skill base of individuals rather than the processes/systems of large firms (in which people processes/systems of large firms (in which people can come and go but processes/systems subsist) can come and go but processes/systems subsist)

4. CURRENT MARKET FORCES4. CURRENT MARKET FORCES

Recession = Contraction of demand for legal servicesRecession = Contraction of demand for legal services

Property Practices/M&A etc., - Idle Property Practices/M&A etc., - Idle

Litigation and Insolvency = BurgeoningLitigation and Insolvency = Burgeoning

USA/UK/Australia – some systemic changes – mass USA/UK/Australia – some systemic changes – mass redundancies etc.redundancies etc.

Impact on Boutique practices – not so pronounced – Why?Impact on Boutique practices – not so pronounced – Why?

(i)(i) Flexible /fast/quick to implement changes or Flexible /fast/quick to implement changes or strategic planstrategic plan

Focus on something – Just do it – little Focus on something – Just do it – little need to need to consult other partners, consult other partners, CEO, marketing, CEO, marketing, conflict conflict checks and checks and other inherently other inherently bureaucratic and time consuming bureaucratic and time consuming

processes; processes;

ii)ii) Less overhead/padding – less need to Less overhead/padding – less need to rationalise in tough times;rationalise in tough times;

In our case we saw slowdown in Property In our case we saw slowdown in Property Development (though some of the major projects Development (though some of the major projects we have been involved with in fact have long we have been involved with in fact have long tails), strategised, decided to get actively tails), strategised, decided to get actively involved in more contentious work and exploit involved in more contentious work and exploit our strong networks in property and construction our strong networks in property and construction sector.sector.

We then recruited at senior level and have a Senior Associate and a We then recruited at senior level and have a Senior Associate and a dedicated team now pitching for and winning Leaky Building, dedicated team now pitching for and winning Leaky Building, contentious work Construction work and are now running an contentious work Construction work and are now running an extremely active litigation practice. extremely active litigation practice.

We are also now instructing 6 different QC’s!We are also now instructing 6 different QC’s!

The delivery of this process took weeks – not months or years and The delivery of this process took weeks – not months or years and to date has proved highly profitable.to date has proved highly profitable.

Bruce Grey QC was in our office the other day and said that after Bruce Grey QC was in our office the other day and said that after the stock market crash in the late 80’s;the stock market crash in the late 80’s;

(i)(i) People were like possums in the People were like possums in the headlights headlights for 12 months; thenfor 12 months; then

(ii) (ii) Allocation of blame begins; thenAllocation of blame begins; then

(iii)(iii) Litigators make hay while the sun Litigators make hay while the sun shines.shines.

Anyway – point is our boutique practice was able Anyway – point is our boutique practice was able to implement ideas very quickly and with to implement ideas very quickly and with finesse. (represents speed of delivery and lack of finesse. (represents speed of delivery and lack of need to consult other stakeholders when need to consult other stakeholders when implementing strategic plan etc).implementing strategic plan etc).

5. INCREASING PLACE OF 5. INCREASING PLACE OF BOUTIQUE FIRMS IN LEGAL BOUTIQUE FIRMS IN LEGAL

SECTOR/GROWTHSECTOR/GROWTH Short answer is “yes”Short answer is “yes” Some will be forced and may become ultimately successfulSome will be forced and may become ultimately successful Some will be clinical and carefully designed and most Some will be clinical and carefully designed and most

likely successfullikely successful Consider Australian /USA position (refer additional Consider Australian /USA position (refer additional

handouts)handouts) UK – some very talented lawyers now back in New ZealandUK – some very talented lawyers now back in New Zealand More enroute from USA, Dubai, Australia etcMore enroute from USA, Dubai, Australia etc New Zealand redundancies seems to be mainly support New Zealand redundancies seems to be mainly support

staff so farstaff so far

NZ – Queen City Law, Chen Palmer, Chancery Green, Dawson NZ – Queen City Law, Chen Palmer, Chancery Green, Dawson Harford – all relatively new compared to 160 odd years of history – Harford – all relatively new compared to 160 odd years of history – Bell Gully Buddle Weir, Simpson Coates & Clapshaw, etcBell Gully Buddle Weir, Simpson Coates & Clapshaw, etc

Expect moreExpect more

Expect Synergy between some of them (USA – boutiques often refer Expect Synergy between some of them (USA – boutiques often refer other boutiques) other boutiques)

Consider potential mergers at Boutique level and successful Consider potential mergers at Boutique level and successful boutiques being acquired by large firms in futuroboutiques being acquired by large firms in futuro

Australia (from 1000 150 lawyers gone by lunchtime – April 2009)Australia (from 1000 150 lawyers gone by lunchtime – April 2009)

LARGE FIRMS CURRENTLYLARGE FIRMS CURRENTLY

(i)(i) Freezing EmploymentFreezing Employment

(ii)(ii) Reduced summer clerk intake (if any)Reduced summer clerk intake (if any)

Point = some very talented people displacedPoint = some very talented people displaced

One result – have a go themselves – set up own One result – have a go themselves – set up own practicespractices

Like nightclubs and some restaurants in Auckland – Like nightclubs and some restaurants in Auckland – some will succeed – others will not, and many some will succeed – others will not, and many institutional types will be sucked up again into institutional types will be sucked up again into leaner big firms as economy picks up and demand leaner big firms as economy picks up and demand for legal services increases.for legal services increases.

In the meantime, nevertheless, bottom line with In the meantime, nevertheless, bottom line with virtually all law firms is that if they are profitable virtually all law firms is that if they are profitable they are generally happy places and if not, like any they are generally happy places and if not, like any business, change will be a coming.business, change will be a coming.

55. GROWTH / INCREASE IN . GROWTH / INCREASE IN BOUTIQUESBOUTIQUES

Therefore safe bet there will also be some more Therefore safe bet there will also be some more breakaways from some of New Zealand’s largest breakaways from some of New Zealand’s largest firms for many reasons including:firms for many reasons including:

A) Catalyst of being in recessionary times and A) Catalyst of being in recessionary times and impact on practice;impact on practice;

B) Breakaway from office politics and management B) Breakaway from office politics and management responsibilities and get back to client work; responsibilities and get back to client work;

C) Profitability (winners and Losers ) – Economic – C) Profitability (winners and Losers ) – Economic – eg looking to retain clients priced out by major law eg looking to retain clients priced out by major law firms fee structure or no longer having to subsidise firms fee structure or no longer having to subsidise less profitable parts of their firms. (economy and less profitable parts of their firms. (economy and now or never deadline – eg 51 years old).now or never deadline – eg 51 years old).

D)D) Independence and freedom – “being in Independence and freedom – “being in control of your own destiny”.control of your own destiny”.

Some of these newly formed boutiques will be top Some of these newly formed boutiques will be top calibre and attract top work.calibre and attract top work.

Not for the faint hearted – example I heard of Not for the faint hearted – example I heard of recently was of a leading partner in a well recently was of a leading partner in a well established Auckland city firm breaking away …. established Auckland city firm breaking away ….

How much work do those undertaking large How much work do those undertaking large firm breakaways take away? Not an exact firm breakaways take away? Not an exact science – many variables to consider but science – many variables to consider but there will there will always always be a place for major law be a place for major law firms, - reasons for this are numerous but firms, - reasons for this are numerous but include:include:

(i)(i) Long Standing relationshipsLong Standing relationships

(ii)(ii) Requirement for many corporates to Requirement for many corporates to have cohesive have cohesive group of various experts group of various experts available under one roofavailable under one roof

(iii)(iii) International dictates of some multi-International dictates of some multi-nationals/multijurisdictional advicenationals/multijurisdictional advice

(iv)(iv) Professional Indemnity related issuesProfessional Indemnity related issues (v)(v) Public company requirementsPublic company requirements (vi)(vi) Panel of approved law firmsPanel of approved law firms

Nett result is that although a select few boutiques will be able Nett result is that although a select few boutiques will be able to capture instructions from some of New Zealand’s biggest to capture instructions from some of New Zealand’s biggest companies, multi-nationals and government departments, companies, multi-nationals and government departments, much of that status quo:much of that status quo:

(i)(i) will ultimately not changewill ultimately not change (ii)(ii) more likely result in client changing from one large more likely result in client changing from one large

firm to another firm to another

(iii) does not allow for existing position of Barristers (iii) does not allow for existing position of Barristers Sole;Sole;

(iv) (iv) may result in parts of work going to newly formed may result in parts of work going to newly formed boutiques but permanent relationship may well be boutiques but permanent relationship may well be retained by larger firms:retained by larger firms:

For example where say CFO of client company enjoys For example where say CFO of client company enjoys close personal relationship with practitioner so moves close personal relationship with practitioner so moves instructions over, then CFO leaves and work goes back to instructions over, then CFO leaves and work goes back to original large firm (not zipped up – our cleaners know their original large firm (not zipped up – our cleaners know their cleaners – relationship – one to one – not firm to firm).cleaners – relationship – one to one – not firm to firm).

Nevertheless, given the way large firms Nevertheless, given the way large firms operate coupled with some of the natural operate coupled with some of the natural competitive advantages Boutiques enjoycompetitive advantages Boutiques enjoy ((flexibility, size, speed) there can be no flexibility, size, speed) there can be no question that there will become increasing question that there will become increasing opportunities for boutique firms to thrive opportunities for boutique firms to thrive in areas that have traditionally been the in areas that have traditionally been the exclusive purvey of mega firms.exclusive purvey of mega firms.

New Zealand = 4 million people – 10,500 New Zealand = 4 million people – 10,500 lawyers – overlawyered? Fierce lawyers – overlawyered? Fierce competition anyway.competition anyway.

6. KEYS FOR GROWTH6. KEYS FOR GROWTH

Catalyst of the recession – pendulum Catalyst of the recession – pendulum swinging back from consolidation towards swinging back from consolidation towards recession-proof niche practices separating recession-proof niche practices separating themselves from struggling behemoths themselves from struggling behemoths

There is an increasing need for smaller firms There is an increasing need for smaller firms because the super-sized practices tend to go because the super-sized practices tend to go after many of the same large clients.after many of the same large clients.

Boutique law firms represent a variety of Boutique law firms represent a variety of clients, all the way from huge corporations clients, all the way from huge corporations to individuals. to individuals.

Boutique firms don’t try to be all things to all Boutique firms don’t try to be all things to all people.people.

Selective narrow practice areas allow lawyers Selective narrow practice areas allow lawyers more personal freedom (rather than say feeding more personal freedom (rather than say feeding off a corporate department)off a corporate department)

Inherent impediment for Boutiques = succession Inherent impediment for Boutiques = succession planning – next generation – same drive?planning – next generation – same drive?

KEYS FOR SUCCESSKEYS FOR SUCCESS

My firm is Queen City Law - why have we won the My firm is Queen City Law - why have we won the Boutique Law Firm of New Zealand Award for 2 years Boutique Law Firm of New Zealand Award for 2 years running? If I told you I would be mad!running? If I told you I would be mad!

Big ticket stuff – part is innate, part is learned and Big ticket stuff – part is innate, part is learned and part refined.part refined.

(i)(i) FinderFinder (ii)(ii) MinderMinder (iii)(iii) GrinderGrinder (i) Finder – charismatic – excellent networks, (i) Finder – charismatic – excellent networks,

rainmaker par excellence – not necessarily adept rainmaker par excellence – not necessarily adept technical lawyer, strong negotiator.technical lawyer, strong negotiator.

(ii) (ii) Minder – Solid Performer, reliable, client-centric, Minder – Solid Performer, reliable, client-centric, responsive, accessible, timely delivery etc.,responsive, accessible, timely delivery etc.,

(iii)(iii) Grinder – perhaps stunning technically at Grinder – perhaps stunning technically at documents – documents – but poorly presented – stutters, bad but poorly presented – stutters, bad acne, B.O. – acne, B.O. – terrible in front line;terrible in front line;

My Bell Gully experiences in the 1990’s a bit like that My Bell Gully experiences in the 1990’s a bit like that – in Boutique practice generally need solid all – in Boutique practice generally need solid all rounders reasonable on all three counts to be rounders reasonable on all three counts to be successful – no room for “grinders” – no such padding successful – no room for “grinders” – no such padding etc;etc;

Last year at same forum I presented on “Success Last year at same forum I presented on “Success for Boutique firms” – this paper is available from for Boutique firms” – this paper is available from Lexis Nexis or online at Lexis Nexis or online at www.queencitylaw.co.nzwww.queencitylaw.co.nz – – Practical Law Library – Legal Checklists.Practical Law Library – Legal Checklists.

Truth is the fundamental keys of success for a Truth is the fundamental keys of success for a boutique firm are generally the same for any sized boutique firm are generally the same for any sized firm, although the audience may be different.firm, although the audience may be different.

7.BOSTON LEGAL7.BOSTON LEGAL

SECRET –SECRET – Success Success of a Boutique firm of course is a of a Boutique firm of course is a closely guarded secret but as you have closely guarded secret but as you have

all paid so much to attend this all paid so much to attend this conference, I shall share part conference, I shall share part

of the of the secret with you.secret with you.

My firm, Queen City Law is modelled on Boston Legal – My firm, Queen City Law is modelled on Boston Legal – in fact, instead of psychometric testing, we get in fact, instead of psychometric testing, we get interviewees to watch a couple of episodes in our interviewees to watch a couple of episodes in our office and if they are not crying or laughing we forcibly office and if they are not crying or laughing we forcibly remove them post haste – to date no one has sued us!remove them post haste – to date no one has sued us!

A couple of our younger practitioners genuinely think they A couple of our younger practitioners genuinely think they are Alan Shores – hand movements and all, we have no are Alan Shores – hand movements and all, we have no Hands Anderson, do have a younger version of Shirley Hands Anderson, do have a younger version of Shirley Schmidt, and for some reason I am now lovingly referred to Schmidt, and for some reason I am now lovingly referred to (just out of ear-shot) as:(just out of ear-shot) as:

““Mad cow” – Which is odd given -Mad cow” – Which is odd given -

i)i) I have no gun; andI have no gun; andii)ii) I do not generally fondle women’s bottoms in I do not generally fondle women’s bottoms in

the office. (I will return to the the office. (I will return to the topic of bottoms if topic of bottoms if time permits); andtime permits); and

iii) iii) Do not have Alzheimer's; andDo not have Alzheimer's; andiv)iv) Do not keep a blow up sex aid in my office.Do not keep a blow up sex aid in my office.

BOSTON LEGAL - NEXUSBOSTON LEGAL - NEXUS

What is the point ?What is the point ? The point is that Boston Legal is the The point is that Boston Legal is the

finest legal repertoire the world has finest legal repertoire the world has ever seen. Clearly, the residue of ever seen. Clearly, the residue of Crane, Poole & Schmidt would form Crane, Poole & Schmidt would form the genesis of the finest fictional the genesis of the finest fictional Boutique Law firm on the planet.Boutique Law firm on the planet.

8. In Summary8. In Summary 1.1. More boutiques will pop up in NZ landscape – some More boutiques will pop up in NZ landscape – some forced – forced –

some in any event. some in any event.

2.2. Success of these boutiques will differ but those with Success of these boutiques will differ but those with the right the right people – team – team work – philosophy, people – team – team work – philosophy, vision, drive, vision, drive, culture etc., culture etc., but first and foremost – but first and foremost – PEOPLE – generally will be entrepreneurial, PEOPLE – generally will be entrepreneurial,

innovative, charismatic, passionate and driven will innovative, charismatic, passionate and driven will succeed.succeed.

3.3. Specialist – Leading Boutique firms will often be Specialist – Leading Boutique firms will often be considered considered market leaders in their areas of market leaders in their areas of specialisation - some of these firms specialisation - some of these firms recession-proofrecession-proof

as their disciplines may not be subject to ebbs as their disciplines may not be subject to ebbs and flows of transactional work and a and flows of transactional work and a diversification of clients and areas of diversification of clients and areas of specialisation mitigates against a one pony specialisation mitigates against a one pony show.show.

4.4. Systems – Leading Boutique firms will have Systems – Leading Boutique firms will have legal databases, research engines, precedent legal databases, research engines, precedent systems, and other technology that will be on a systems, and other technology that will be on a par with (and in some cases superior to) some par with (and in some cases superior to) some of New Zealand’s largest law firms. of New Zealand’s largest law firms.

5.5. Reputation / PR etc., - Leading boutique firms Reputation / PR etc., - Leading boutique firms will often have will often have moremore media penetration and media penetration and air time than New Zealand’s largest firms. air time than New Zealand’s largest firms. Patience may be required as this does not Patience may be required as this does not normally happen overnight. normally happen overnight.

6.6. Client Loyalty – top boutique firms will be Client Loyalty – top boutique firms will be exceedingly client-centric and nurture client exceedingly client-centric and nurture client loyalty far more successfully than other law loyalty far more successfully than other law firms (and should zip these relationships up).firms (and should zip these relationships up).

77.. Profitability – leading boutique firms Profitability – leading boutique firms will often will often be disproportionately profitable.be disproportionately profitable.

8.8. Firm’s culture speaks for itself (and Firm’s culture speaks for itself (and naturally naturally easier to implement with less road easier to implement with less road blocks).blocks).

9.9. Service Industry – people – ideas – Service Industry – people – ideas – documentation - documentation - timing – service – be timing – service – be client-client- centric centric from MD to receptionist.from MD to receptionist.

10.10. Develop Trusted Partner RelationshipDevelop Trusted Partner Relationship – part of – part of their their business, understand their business, business, understand their business, shareholder shareholder mentality, tailor advice to client’s mentality, tailor advice to client’s own business own business practicalities – listen / care with practicalities – listen / care with conflicts.conflicts.

11.11. Add tangible - real valueAdd tangible - real value – and develop – and develop relationship so relationship so you can charge more for doing so – you can charge more for doing so – touch once touch touch once touch right – anticipate – loyalty – right – anticipate – loyalty – here is where real profit here is where real profit may be made ( but only may be made ( but only applies to certain clients).applies to certain clients).

12.12. At the start of this presentation I referred to the At the start of this presentation I referred to the Law Law Awards definitions of top New Zealand law firms Awards definitions of top New Zealand law firms – own – own it.it.

13.13. An inherent weakness of any boutique is survival An inherent weakness of any boutique is survival beyond the retirement of the founding partner(s).beyond the retirement of the founding partner(s).

14.14. In the future some boutiques will merge, some In the future some boutiques will merge, some will be will be swallowed up by the large firms, some will swallowed up by the large firms, some will go sailing go sailing and at some stage history will again repeat and at some stage history will again repeat itself. itself.

As you will observe many of these KEYS are the same As you will observe many of these KEYS are the same for any legal practice. Boutiques can and do survive for any legal practice. Boutiques can and do survive and thrive when the formula is right – getting it right and thrive when the formula is right – getting it right requires a tenacious attitude and continuous critical requires a tenacious attitude and continuous critical review.review.

IN SUMMARYIN SUMMARY

How meaningful is the shakedown in How meaningful is the shakedown in jurisdictions like the US to our own jurisdictions like the US to our own NZ based practices ?NZ based practices ?

Certainly the situation here is not as Certainly the situation here is not as poignant and in event we are now poignant and in event we are now told that the recession ends told that the recession ends tomorrow at 8:37 am – Still , there tomorrow at 8:37 am – Still , there are plenty of lessons here for all of us are plenty of lessons here for all of us ..

SOME RELEVANT ARTICLESSOME RELEVANT ARTICLES

1.1. Client-centric focus – Client-centric focus – www.queencitylaw.co.nzwww.queencitylaw.co.nz – – Practical Law Library Practical Law Library – Legal Checklists – Lexis – Legal Checklists – Lexis NexisNexis Strategic Law Strategic Law Firm Management – Firm Management – September 2008.September 2008.

2.2. Boutique firms rise to the occasion – Cabral Boutique firms rise to the occasion – Cabral Douglas Douglas – 24 March 2009 – ALB Legal News.– 24 March 2009 – ALB Legal News.

3.3. Challenges Ahead for Kiwi Law Firms – 16 Challenges Ahead for Kiwi Law Firms – 16 June June 2008 – Law Fuel. 2008 – Law Fuel.

4.4. Fee sensitive clients prompting lawyers Fee sensitive clients prompting lawyers to form to form boutique firms – Houston Business boutique firms – Houston Business Journal – Journal – Ford Ford Guntur – March 13 2009.Guntur – March 13 2009.

5.5. Small firms luring large clients – Small firms luring large clients – Houston Houston Business Business Journal – Ford Guntur – Journal – Ford Guntur – November November 25, 2008.25, 2008.

6.6. Boutiques Network to Compete with Boutiques Network to Compete with Big Firms Big Firms – Jesse – Jesse Greenspan – Greenspan – International Network International Network of Boutique Law of Boutique Law

Firms June 5 2008.Firms June 5 2008.

7.7. Boutiques – focussing on being different. Boutiques – focussing on being different. Derek Derek Bedlow – Which Lawyer? Yearbook – Bedlow – Which Lawyer? Yearbook – 2006 Edition.2006 Edition.

8.8. Large Firm Layoffs Lead to Small Firm Large Firm Layoffs Lead to Small Firm Startups – Startups – Petra Pasternak – 02/11/2009Petra Pasternak – 02/11/2009

9.9. A Study in Why Major Law Firms are ShrinkingA Study in Why Major Law Firms are Shrinking

New York Times – 05/06/2009New York Times – 05/06/2009

Q & AQ & A

This power point and other articles that may be of interest are available This power point and other articles that may be of interest are available online at : online at :

www.queencitylaw.co.nzwww.queencitylaw.co.nz

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