1. Best in France Case Study Project HERBERT SMITH Emmanuelle BRISSAUD Julie LUNEAU Fidji SIMO

2. Methodology Research of information about the French legal market Research of information about the French legal market Research of information about Herbert Smith Research of information about Herbert Smith Interview of an independant legal consultant about the French legal market Interview of an independant legal consultant about the French legal market –Patrick BIGNON, Managing Partner of Law Management Consulting, consulting boutique for law firms Interviews of Herbert Smith managers in France: Interviews of Herbert Smith managers in France: –Neil Brimson, partner, ex Managing Partner –Jean-Didier Billard, CEO – à rajouter

3. Presentation of the Paris office of Herbert Smith Core business Core business –A law firm specialized in big businesses since 1962. –4 main fields of activities: Banking and Finance, Litigation and Arbitration, Projects, Competition/Antitrust,  a full service law firm –Specialization in Litigation and Arbitration and in Finance. –The French office has developped a big business in French speaking African countries.

4. Presentation of the Paris office of Herbert Smith Clients Clients – International firms that have activities in France –French firms that have activities abroad –African governments –Examples: Air Liquide, Coca Cola, Goldman Sachs, KPMG, Toyota, Procter&Gamble, Merrill Lynch

5. Presentation of the Paris office of Herbert Smith Key figures Key figures Staff 2003 Staff 2004 Evolution 2003- 2004 Number of partners 2003 Number of partners 2004 Evolution 2003- 2004 Number of lawyers 2003 Number of lawyers 2004 Evolution 2003- 2004 Herbert Smith 75 0,00%15 0,00%60 0,00% Turnover France 2003 M€ Turnover France 2004 Evolution 2003- 2004 Turnover / partner 2003 Turnover / partner 2004 Evolution 2003- 2004 Revenu per lawyer 2003 K€ Revenu per lawyer 2004 Evolution 2003- 2004 Herbert Smith 23,523-2,13%1 468 7501 437 500-2,13%331 600353 8466,70%

6. Presentation of Herbert Smith: Herbert Smith around the world Locations Locations –Head office in London –Worldwide office for Herbert Smith and its best friends in Brussels –9 offices in Europe, China, Japan and Russia Best friends network Best friends network –Formal alliance in the main European market with Gleiss Lutz and Stibbe –Sharing of the market between the three law firms –Transfer of competencies and strong presence –Visibility of Herbert Smith not alterered

7. The three key issues of the setting up of Herbert Smith in France The market The market The ressources The ressources The values The values

8. The market Historical reasons: Historical reasons: –The International Court of Arbitration is based in Paris and Herbert Smith had a strong practice of Arbitration –The crucial presence to foster the development of this practice –A setting up strongly linked with the personality of the Paris office founder: Doctor Mann, an arbitration expert

9. The market Proximity with clients Proximity with clients –Clients having branches in France and occasionnaly confronted to French law rules –French clients having problems in their head office -confronted to French law- or with their international branches – confronted to English law in that case- –An activity that requires a human relations with the client: a need for interactivity

10. The market Cross borders deals Cross borders deals –As the core business is transaction this involves different places and different law rules. –Increasingly companies are global and have many activities all around the world –For the alliance to be strong an due to the absence of the other members of the alliance, need for Herbert Smith expansion in Paris

11. The market Competitors Competitors –All majors competitors have an office in Paris –The market is increasingly competitive : Maintaining market shares is crucial

12. Ressources Training Training – Difficulties of a good recrutment policy Law firms need lawyers with analysis and expression skills and specialised lawyers Law firms need lawyers with analysis and expression skills and specialised lawyers Law faculty is not choosen by the best profiles and don’t propose a specialised and an international- oriented training Law faculty is not choosen by the best profiles and don’t propose a specialised and an international- oriented training – However, progress is made English is mastered by many students English is mastered by many students This enables transfer of lawyers in other offices This enables transfer of lawyers in other offices

13. Ressources French lack of flexibility French lack of flexibility – French labour market specificities Hard to find workers doing extra time Hard to find workers doing extra time Hard to find assistant for punctual files Hard to find assistant for punctual files –Administrative constraints 35 hours a week 35 hours a week Cost of employement and hiring Cost of employement and hiring

14. Ressources Specificities of being a lawyer in France Specificities of being a lawyer in France –Independant statute  don’t have to abide by Labour law contrary to other countries –Enable them to avoid French labour market rules

15. Values Individualism: lawyers are traditionally really independant but in France this feeling is stronger Individualism: lawyers are traditionally really independant but in France this feeling is stronger –Visible through the language: « Come to my law firm », « Personally, I think that… » –Due to historical reasons: law firms were traditionally societies where the only thing in common was the ressources, vs the model of partnerships

16. Values The French culture regarding work is totally incompatible with the requirements of a law firm The French culture regarding work is totally incompatible with the requirements of a law firm –The functioning of a law firm requires to be available for the client at every moment –The impredictable work requires to do extra hours very frequently –But it is really difficult to find people, especially among secretaries or other assistants, that are willing to work hard

17. Values A totally different image of the lawyer in France and in Anglo-saxon countries A totally different image of the lawyer in France and in Anglo-saxon countries – In France, the lawyer is perceived as a theorician, a pure legal expert –On the contrary, Anglo-saxon lawyers are perceived in France as wheeler-dealers, commercials, more interested in money than in theory –It is linked with the different nature of the law system: common law vs civil law –There is a kind of sin of pride, due to the specificities of the French training: without the possibility to specialize, French lawyers believe that they know everything about the law rules –It’s the reason that explain the slow development of the profession in France: in France, the relation to money is strictly linked with notions of morality

18. Prospects for the future The expansion of the French office is mandatory in the alliance The expansion of the French office is mandatory in the alliance But on such a competitive market, ther is a need to find new sources of profit But on such a competitive market, ther is a need to find new sources of profit That’s the reason why the African expertise of Herbert Smith can be an important asset That’s the reason why the African expertise of Herbert Smith can be an important asset –Because Africa is gaining importance in this market due to the trade of raw materials –Because Africa doesn’t have an unified law, which requires the involvement of lawyers

19. Recommandations Glocalization Glocalization –Being full service using the alliance and fostering cross fertilization of practices –At the same time, developing local specificities in each office Attract the best profiles Attract the best profiles –Internationalizing the recruitment –Fostering tranferts across offices Try to develop a worldwide culture of the firm Try to develop a worldwide culture of the firm –To reduce lawyers’ individualism –To unify the practices in the different offices (behavorial control)

20. Acknowledgements Mickael Segalla Mickael Segalla Jack Anderson Jack Anderson Neil Brimson Neil Brimson Jean-Didier Billard Jean-Didier Billard Dominique Brault Dominique Brault Patrick Bignon Patrick Bignon

21. Sources Legal Week Legal Week The Lawyer The Lawyer Law.com Law.com Chambers Global 2005 Chambers Global 2005 Legal 500 Legal 500 Décideurs Juridiques Décideurs Juridiques