Linklaters to shift client focus and crack down on partner performance

Linklaters is consulting with partners about its new five-year strategy, with a revised client focus, expansion in Germany and better performance management for partners at the heart of the plans.

London partners received a consultation document last month, with initial discussions about the plan now being led by practice group heads.

A final version of the document is due to be presented to partners by Linklaters’ senior management team at the firm’s annual partner conference, which will be held in Montreux Switzerland, in April.

The proposed strategy, which is expected to come into effect when managing partner Simon Davies’ predicted second term starts in July, focuses heavily on international expansion, client management and engendering a more robust performance culture.

Germany has been earmarked for significant growth over the period, with management hoping to narrow the gap with rival Freshfields Bruckhaus Deringer. Asia is also being targeted, with Linklaters planning investment in Indonesia and South Korea in a bid to ramp up Asian revenues.

A revised client outlook will see the firm targeting newer growth companies - including alternative credit providers, such as hedge funds and buyout houses - as well as the FTSE 250, with the change due in part to a drop in activity from FTSE 100 companies and tougher pricing. The overhaul is likely to result in a shift in the firm’s key platinum client base.

Meanwhile, partners look likely to face a tougher performance culture that encourages a more entrepreneurial attitude, as well as more clearly defined performance objectives and regular monitoring.

The crackdown on performance comes after Legal Week reported in December that Linklaters was embarking on its third major restructuring in a decade, resulting in more than 35 partners being asked to leave the firm. In keeping with the revised client outlook, the London corporate practice is being heavily affected by the cuts.

One partner within the firm said: “This is a period of change for the firm, but we feel we are forerunners in the industry and that the vast majority of law firms will follow suit, both by reshaping their partnerships and focusing on a select band of up-and-coming clients.”

Before the five-year plan is agreed, partners have to approve Davies’ second term in office through a vote. Senior partner Robert Elliott this week sent partners a reminder to vote in the election, as Davies has not yet received the 75% majority required to be re-elected in the role, despite being the sole candidate standing.

With failure to vote counting as a vote against Davies, there has been speculation within the firm that the restructuring has affected voting turnout.

Linklaters partners told Legal Week that they expect Davies to win another term, but there have been suggestions that a failure to secure a high enough vote could lead the firm to call a partner meeting to ratify the appointment.

Commenting on the strategy review, a Linklaters spokesperson said: “It’s not appropriate for us to comment until the partnership has been fully consulted.”