Law firm management
Competing against the best in the US
With consistent tier 1 status in The Legal 500 rankings within the areas of finance, REITs, and tax in the US guide, and banking, M&A, and projects in the Latin America guide, Helen Donegan, US editor (content) at The Legal 500, recently sat down with Evan Cohen to take a closer look at the strategy behind the growing success of Clifford Chance’s US team
hen you're asked to lead a region identified as the top strategic priority for one of the world's largest globally integrated firms, you are faced with two distinct but intertwined challenges: supporting your firm's global ambitions while also developing a domestic strategy thatW addresses the challenges unique to your local market. It's no easy task.
But Evan Cohen – who was elected Clifford Chance's managing partner for the Americas in 2013 – has likely exceeded the firm's expectations based on the increasingly impressive results his US team has produced in recent years.
6 fivehundred February 2020 February 2020 fivehundred 7 Law firm management
“In my view, we’re not a Magic Circle firm in the US; we're a strong US firm comprised of US lawyers competing against US firms for domestic work”
Initially, not many in the market support of the global management global firm had already established speak Spanish. There was one senior took notice. But that's beginning to committee. They have left us to get tier 1 status in other legal markets associate in our Washington, DC office change. on with it.’ around the world, but not in the US. who was Argentinian and who was His strategy hinged on attracting top the only one who spoke Spanish.’ That The five pillars and the right The right work tier talent to the team. Enter John associate, Fabricio Longhin, went market When asked what his US strategy Howitt from Paul Hastings and Zarrar on to make partner and helped build Clifford Chance’s global strategy entails, Cohen sums it up by saying: Sehgal from Milbank in 2006, and the what is now a market-leading practice. has five pillars: right markets, ‘It sounds simple, but you have to two went on to build a market-leading Shortly after Cohen became managing right work, right clients, best team, play where you can win – especially US asset finance practice. Both are partner, Longhin highlighted the need and best delivery. ‘Right markets’ in a legal market as fiercely now recognised in The Legal 500’s for more fluent Spanish partners is where Cohen places the US competitive as the US.’ And that's Hall of Fame. Emily Wicker later within the team. This led to the practice. exactly what he has done. joined the practice from Debevoise. recruitment of Gianluca Bacchiocchi The team went on to reach the highest from DLA Piper, as well as the ‘The firm’s overall vision is to After six years with Clifford Chance tier within The Legal 500 rankings for promotion of Guido Liniado to partner. grow the US and to grow Asia,’ he in Hong Kong, Cohen moved back US aviation and air travel finance. explains. With the aim of being ‘the to New York in 2004 and took over Today, projects is also a tier 1 practice global law firm of choice,’ Cohen the banking and finance group in ‘We also now have Patrick O'Reilly with its own leading lawyers. It has goes on to highlight the importance 2005. ‘At that point, we had already and Madalyn Miller as younger also sat atop the Latin America project of the US legal market. ‘To be a done the merger with Rogers & Wells partners within the team, and today finance league tables for three years global leader, we needed to be more and we were still integrating the two it is one of the leading asset finance running. ‘Although the results say significant in the US. We recently practices,’ he confirms. Cohen quickly practices in the country,’ Cohen LatAm,’ Cohen notes, ‘the legal work surpassed 300 lawyers, we've identified the challenges and decided proudly states. ‘It is a $35m practice, is done by US lawyers in New York developed several leading practices, that focusing on the right areas with two female partners out of a five- and DC, the transactions are largely and we like the trajectory we're on.’ of work – and selecting where he partner team, which I am also proud governed by US law, and the capital believed the firm could build market- of as diversity has been a real focus for the deals is mainly coming from But growth is just a small piece leading practices – was the best way of mine.’ US investment banks. The work of this story. Cohen and his team to address it. This would prove to be benefits countries in Latin America, developed a strategy that was rolled a winning strategy. Cohen replicated this success with the but it's a true US practice.’ Here too, out early in his tenure and it's projects team. ‘The projects practice Cohen proudly points to the diverse been paying huge dividends. ‘That Cohen selected asset finance and covered not only the US but also Latin makeup of the team – 80% of the strategy is run here locally, with the projects – two areas in which the America and was filled with people partners are diverse, and 40% are like me – Americans who did not women.
8 fivehundred February 2020 February 2020 fivehundred 9 Law firm management
“Lockstep culture and the lockstep system makes it better for the client. And at the end of the day it is all about the client and we have to put clients first”
lawyers competing against US firms representation of Chinese telecoms in the US was its wider LatAm for domestic work. In fact, of our giant ZTE, where the firm secured As a result of Cohen’s strategy and practice. It took what it had and built nearly $300m in revenues last year, a first-of-its-kind temporary general the work of its teams, banking and from there. 85% of it was self-generated, so we licence to allow the client to continue finance has grown to become an $80m don’t sit here waiting for the phone to operating during a multi-agency, multi- practice. Cohen points to several key ring from London or elsewhere.’ year US export control investigation. partner additions across different In 2013, Cohen became regional transactional practices: ‘We promoted One of the primary drivers of the firm’s managing partner for the Americas. Thais Garcia in corporate M&A. We The best team success in the US in recent years The asset finance team, and the Given the success of his approach brought in Hugo Triaca from Skadden has been its litigation and dispute projects team, effectively highlight with the banking and finance practice, to bolster our capital markets offering. resolution team, which is currently the importance of having the right the same focus was adopted for the And Ignacio Suarez Anzorena advising on one of the world's most people. The firm has very carefully Americas strategy in 2015. Along returned to the firm to give us more highly visible anti-money laundering selected lateral partner hires to ensure with his practice leaders, Cohen once heft in international arbitration. All of cases. The investigations practice, in a ‘cultural fit’ and have focused on again decided to focus on building these individuals have native fluency particular, operates at the top of the hires that aid in the execution of the those practice areas where Clifford in Spanish, and their associate, market, advising on headline-grabbing Americas strategy. Chance US could compete with the secretarial, and BD support are also matters, often opposite the US elite. ‘We have focused on building out Spanish speaking. Today we have Department of Justice. our partnership in those areas where one of the most robust international Culture and compensation Clifford Chance is still a lockstep firm we can have leading positions. For us, LatAm practices in the region.’ In addition to multiple representations within the US – a differentiating factor that meant identifying areas where, in the Mueller-Russia investigation, from many New York firms. Cohen with reasonable investment, we could Cohen’s regional strategy has resulted Clifford Chance's litigators have led says the firm does not wish to break develop leading practices, as we had in year-on-year growth for the firm in on several precedent-setting matters lockstep to attract lateral partners already done in asset finance, projects, the US and a growing abundance of in the US, including: a US court who may take their practices and REITs, and tax. We are a firm that domestic work. ‘When I came back ruling that set a new precedent for jump to the next firm that pays them wants to be known for quality, so we from Asia, we were thought of as deferred prosecution agreements; more money. ‘We've taken a different had to identify the areas in which we that British firm that merged with another ruling that produced a approach, and it's worked well for us,’ could compete with the best firms, and Rogers & Wells. Today I don’t hear significant setback to prosecutors he says. then begin to build those teams.’ that anymore. In my view, we’re not seeking expansive theories on which One area where Clifford Chance a Magic Circle firm in the US; we're to build an FCPA case against non- ‘What we have done is to focus already had elements of clear strength a strong US firm comprised of US US companies and individuals; and on talented, young, and ambitious
10 fivehundred February 2020 February 2020 fivehundred 11 Law firm management
“I can’t change society – but at least within Clifford Chance I can make this a place where anyone can succeed based on merit”
partners who want to build their from a lockstep firm because they offered her one of the best antitrust seemingly obvious choices, makes practices at Clifford Chance and bring colleagues and are willing to teams in the world, but I still think the wider legal market pay attention. develop within the firm culture. After share the business.’ culture was a big part of the reason But what really tells the story are the they’ve built their practices, we see she joined us’. numbers. Of the last ten US laterals other firms reach out and try to lure Cultural fit and hiring for the long- who now have at least four years at them with increases in comp, but their term are important within the firm. Another example is Gary Boss, the firm, fees billed have increased, on roots are here, with us. We brought ‘We don’t recruit people with sharp who favoured a move to Clifford average, by 350% between their first them in, we supported them, and they elbows. We have even turned down Chance in 2012 instead of the and fourth full years. stay because they love the firm. That people with books of business others perhaps more obvious move to cultural glue is a key differentiator would take. I am not focused on Willkie Farr with his then fellow The focus on inclusion for us.’ “buying a book” today; instead, I want Dewey & LeBoeuf insurance What is clear from how Cohen speaks to add partners committed to growing partners. Cohen has an explanation of the US offices is that building a He goes on to highlight what he sees their practices, with the support of the for this: ‘He saw an opportunity to diverse and inclusive team is a critical as the client-focused benefits of their firm. I think that’s why our attrition build his business with us because component to building the right team. lockstep system: ‘The nice thing about is so low and why others choose to of the platform we have here and In fact, the last US partner promotion lockstep is you are less focused on join us – it's because of our culture of because we are supportive of round consisted of entirely diverse your own compensation – instead, you collaboration, collegiality, and respect.’ partners who are innovative. We candidates. ‘We want to be a place are focusing on the client and bringing surrounded him with the support where female, minority, and LGBTQ a team together to serve them in the Cohen can back this up with he needed to leverage his creativity lawyers feel they can succeed. And best way possible. Clients have a lot of examples, one of whom is Sharis and make things happen. He has instead of just saying it, we are putting choices – there are a lot of good firms Pozen, who joined the firm’s antitrust helped raise $14bn and launch our commitment into action, and it is in New York – and we want them to practice in Washington, DC in 11 new reinsurance companies in clearly working as our new class of appreciate the value Clifford Chance 2019. Pozen was the global head of the last five years. He has become partners is 100% diverse. I don’t know brings to them and come back to us. competition law and policy at GE one of the leading insurance M&A how many other firms in New York can Lockstep culture and the lockstep before joining the firm, and was the partners in the world and rightfully say they had a 100% diverse class at system makes it better for the client. target of a number of leading US earned a tier 1 status he did not their last partner promotions.’ And at the end of the day it is all about firms. However, she joined the team have when he joined us. We couldn’t the client and we have to put clients at Clifford Chance because she had be more proud of the team he has Cohen can freely cite the diversity first.’ And clients say they notice the worked with them during her time at built around him, or what he has statistics of the firm and openly difference. As Cohen noted, ‘one of GE. ‘She loved the culture and she accomplished since arriving here.’ expresses his pride in the role he has our clients recently told me they can loved the people she knew and met Attracting top talent who have played in achieving them. ‘I am very tell when partners who visit them are during the recruitment process. We numerous other options, or more happy to have doubled the percentage
12 fivehundred February 2020 February 2020 fivehundred 13 Law firm management
of female partners in the firm here in The right clients the US – we have almost 20% female Having seen the work to put their “This region is now a net-exporter of partners and the US partnership house in order, so to speak, the next overall is almost 30% diverse. I am area to look at is the firm's client work to the rest of the global firm” working to continue driving those roster in the US. This is another percentages higher. The Americas area in which they have succeeded, Management Committee is 30% having built an enviable client list of of sending out more work to other (including continuous improvement diverse because you want and need domestic companies. From advising Clifford Chance offices than they are experts, project managers, and that diversity of thought and ideas. iconic US-based Fortune 500 corporate taking in. As Cohen acknowledges, legal technologists) who are able to I can’t change society – but at least enterprises on cross-border M&A ‘this was not the case ten years ago, streamline processes for lawyers within Clifford Chance I can make this and cybersecurity issues, to advising but things have really turned around. advising on legal matters – usually of a place where anyone can succeed the largest US investment banks on This region is now a net-exporter of significant size and scope. based on merit.’ aircraft securitisations and energy and work to the rest of the global firm.’ infrastructure, the firm’s New York With a healthy list of US clients and ‘It all starts with the client and Tackling the war for talent and DC offices have developed strong domestic work, the US firm is no bringing added value to them. You The focus on culture and inclusion relationships while undergoing a bit of longer merely an aspiration, but a pair that with our collaborative within the firm is evidenced by three a transformation. critical component to the continuing approach and lockstep culture and no.1 rankings in US survey results for growth of the global network. that is how this firm has produced associate satisfaction, diversity, and Although always recognised as one the results it has in recent years. the summer associate programme. ‘We of the world's premier banking firms, Delivering the best The legal profession is changing. are also number three in the list of top Cohen has worked hard during his The final pillar in Clifford Chance’s We are committed to being out front firms in the country to work for,’ Cohen six-plus years at the helm to global strategy is what it refers to as and leading the transformation. states [referring to the 2019 Vault US diversify the firm's US revenue streams. 'best delivery'. In the US the firm is We are very focused on process Survey]. At the beginning of the decade, focused on differentiating themselves improvement. Increasingly, our Clifford Chance was overly reliant on in a number of ways. The first is partners are looking to add the best He recognises the importance of mandates from banks in the Americas; through innovation. Clifford Chance delivery team to their matters for a this ‘because there is a war for however, the region will close this Applied Solutions was launched variety of reasons. For example, a talent’. Every law firm wants the best decade with revenue from financial in 2018 to deliver digital solutions matter may have fixed pricing; if our associates from the best law schools, investors and corporate enterprises designed to more efficiently address best delivery colleagues can work so the firm’s status as number one now both outpacing the banking large-scale client challenges. Added out a way to run that matter more for associate satisfaction and number sector – a notable transformation in a to this was Clifford Chance Create, efficiently, that benefits both the three in the top firms to work for is a short period of time. which looks at ways in which the firm client and the firm. For the first time huge advantage on the recruiting trail. can create products for clients to help since I've been practicing law – and ‘Young people take notice,’ says Cohen. And although they still benefit from with their legal operations – products that goes back decades – you have ‘If you bring in the right people and the support of and the opportunities such as CC Draft. someone totally focused on process you support them and create the right to collaborate with other offices and efficiency for the client. That is a environment, then good things happen.’ across the Clifford Chance network, The firm’s best delivery component real game changer and we have won a the US firm now enjoys the position comprises a team of people lot of deals because of it.’
14 fivehundred February 2020 February 2020 fivehundred 15 Law firm management “It all starts with the client and bringing added value to them. You pair that with our collaborative approach and lockstep culture and that is how this firm has produced the results it has in recent years”
The focus on clients and creative ways may still enjoy the opportunity to understand what's it’s like to be a ways to get our brand out there, of thinking about their legal issues, refer to it as a British or foreign firm, junior lawyer at Clifford Chance. and more people are beginning to and the investment in innovation it has now well established itself understand we are a real US firm, and development, are competitive within the US market – as evidenced ‘I’m always mindful,’ says Kachel, with US born, bred, and educated advantages. Cohen attributes this to in its top tier status within legal ‘that our offering is legal services, lawyers working from US offices their success in the legal rankings, directory rankings and some creative, but our product is people. There for US clients. We're no longer saying: ‘We don’t compete on size, but aggressive marketing that has people are a lot of great lawyers in the flying under the radar.' our rankings reflect the overall quality talking and running into the Clifford US, and the truth is, many of the of our offerings. That's important Chance brand more often in the US. matters we advise on could just The proof is in the pudding when you're competing against the as easily have been handled by a So is the US strategy working? best US firms – as a US firm.’ CMO Mike Kachel has worked closely different firm. But a key question If further evidence is needed in with Cohen to develop the Americas for clients is this: who do I want addition to the firm’s position Looking forward strategy and promote the unique to work with, and who do I trust? within the top tiers of many of the When asked what lies ahead for aspects of the firm's culture. For Highlighting our people – what US rankings, or in addition to its Clifford Chance in the Americas, example, Kachel collaborated with drives them, what’s important to ability to attract top US talent and Cohen says: ‘The areas where we The Legal 500’s GC magazine to them, what their values are – is an sought-after US clients, then the have already achieved tier 1 status develop a bespoke publication, Advice important part of our marketing ultimate proof is in the numbers. will continue to receive the necessary To My Younger Self: Reflections of platform.’ investments to maintain their leading Successful Women Lawyers. The The firm has achieved a 50% positions, but we'd like to get closer to book, which profiles Clifford Chance It cannot go without note that increase in US revenue since 500 lawyers over time. Our strategy female partners and alumnae from despite all of its efforts, Clifford Cohen became managing partner is working for us, so where there around the world, launched in April Chance remains excluded from at the beginning of the 2013/2014 are opportunities to grow we will. 2017 and has now been seen globally one notable list. ‘The American financial year. And in the current I want to grow, but I want to grow by nearly 30,000 people. In April Lawyer's Am Law 100 has evolved fiscal year, they are on track to strategically and not just for growth’s 2019, the firm followed up with into the arbiter of elite firms [in exceed $1.2m in revenue per sake. I always want to be known as another collaborative effort with GC the US], and because the majority lawyer. ‘We’re closing in on the a top tier firm doing the best quality magazine to produce Their Voices: of our lawyers overall are not in top 25 for US RPL, which is pretty work for the best clients.’ Insights From Today's Rising Lawyers the US, we do not qualify to be good for a group of 300 lawyers The US firm has evolved and is vastly – a second publication that is being included in its various performance not recognised as a NY firm,’ different from where it was five or ten used by the firm’s US recruiting rankings,’ explains Cohen. But as jokes Cohen. n years ago. While the odd competitor team to help law school students he points out, ‘we've found other
16 fivehundred February 2020 February 2020 fivehundred 17