EXCLUSIVE – Freehills CEP Gavin Bell Debunks LPR Amid New Departures

In 2011, we have seen a number of major departures from top-tier law firm and GFC employer of choice – Freehills. In May we broke the news that Freehills had lost its Melbourne-based Superannuation group to Lander & Rogers. This came after our reports – later confirmed by Freehills – that the firm was considering splitting its employment group, similar to its tax offering Greenwoods & Freehills. All of this, we thought, stemmed from the threat posed to the firm by new arrivals like Allen & Overy who are offering higher, guaranteed pay at a time when Freehills’ profit margins are being squeezed. Hence the so-called “Leading Practices Review” – a process overseen by an external advisor which, we were informed, had specific terms of reference to recommend ways of improving profitability. Not so according to Freehills CEP Gavin Bell, who spoke exclusively with Firm Spy yesterday.

But first, we received the following intel from an anonymous source last week:

Further to your update on 20 May re Freehills Leading Practice Review and their Patent and Trade Mark Attorney arm, it seems that at least two Partners have jumped ship: Paul Jones and Deb Tulloch have set up their own firm.

Details from the IPTA website:

Jones Tulloch
484 Glenferrie Road
HAWTHORN VIC 3122
Phone: 03 9819 5116

Indeed, it looks like another 2 partners have left the firm – both Paul Jones & Deb Tulloch were formerly listed as Freehills partners (Deb Tulloch also popped up in the Freehills “Our Leading Women” page). These new departures prompted us to contact Freehills directly and ask about the Leading Practices Review. The things we wanted to clarify were:

1. Whether partners who fail to account for $3+ million being asked to consider opportunities elsewhere;
2. If so, what will happen to junior lawyers indentured partnered by those who will now be looking elsewhere (ie – it would suck if they chose a graduate job at Freehills over another prestigious firm, only to be collateral LPR damage); and
3. When the LPR process is likely to end.

Freehills CEO Gavin Bell said:

The Leading Practices Review process was an internal review to ensure we have leading practices across all areas of the firm. It was not focussed on profitability, but rather how we can offer the best service to clients and the best opportunity for our people. The review which was led by Mike Ferraro and myself is now complete and Mike has taken up the role of PGH for Freehills’ Corporate Group.

The outcomes are commercially sensitive and confidential and are in the process of implementation. However, our recent announcement that we have boosted our IT practice with three senior lateral appointments is an example of an opportunity it identified. Despite claims to the contrary there have been few departures from the firm related to this process which is testament to our culture and recognition that no business can afford to stand still.

There you have it – LPR is still in the process of implementation. We applaud Mr Bell for conceding that at least some of the recent departures from the firm have been related to the process. But what is particularly interesting to note – and something we haven’t seen reported in any of the media coverage on this issue – is that the LPR also appears to have elicited recommendations on where the firm can employ more lawyers and build bigger practices, rather than just shave the less profitable practices that currently exist.

Send the Firm Spy your news and views!

EXCLUSIVE - Freehills CEP Gavin Bell Debunks LPR Amid New Departures, 4.7 out of 5 based on 7 ratings