Profiting With Public Relations

Tidbit: Resources for Firms Wanting to Expand Overseas

In recent years, top global law firms have been ramping up their practices in emerging markets, particularly in Dubai, China and India. For medium sized law firms, also wanting a piece of the global pie organizations such as,  International Lawyers Network, and AFLA International Globlal Network, are extremely resourceful.

Growth opportunities abroad  are not limited to large global bemoths, granted at first glance they do tend have several advantages in place: they have global networks, infrastructure in place and big budgets.

For small law firms aspiring to do business abroad, a big resource is the American Bar Association. The ABA has several divisions, the International Division and General Practice, Small Firm Division. The latter has a list serve Solosez, with well over 3000+ members and growing! While most of the members of Solosez listserv are American,  many are from United Kingdom, Mexico, Germany and Australia. Listservs and conferences at bar associations  provide ernormous opportunities to network and conduct some due diligence when considering doing business.

To find out more about Solosez, read this article by Keith B. Mclennan, partner of Miller, Turetsky Rule & McLennan.  Of course the other good starting point is becoming involved with  the foreign chambers of commerce in your neck of the woods.

Growth Trends For Law Firms in Global Marketplace

Although there is much discussion of economic doom and gloom in the United States, particularly in the financial services sector in New York. The legal industry hasn't been immune to the changes in the economy either. According to the WSJ Legal Blog the latest latest round of lay offs in law firms, include giants such as Thatcher Proffitt and Clifford Chance.

Meanwhile on the international front, though also witnessing repurcussions of the credit crunch crisis as well as other economic woes, a recent article by Vesna Jaksic of the National Law Journal reported on growth trends for law firms in the global marketplace. The survey was conducted by Proskauer Rose LLP, “2008 Trends and Developments in International Legal Practice.”

The survey hilights the following areas for growth:

1. Increased litigation of international controversies in the United States.

2. Increased use of alternative dispute resolution techniques other than in-court litigation and international arbitration.

3. Increased risk faced by international companies of simultaneous, coordinated regulatory or enforcement proceedings in multiple countries.

4. The continued (albeit lamented) “Americanization” of non-US legal systems.

5. The ramifications of the subprime mortgage crisis and accompanying credit crunch in the context of the drafting, enforcement, and resolution of disputes over MAC clauses.

For an in depth look at the survey please visit Proskauer Rose LLP

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Skills Needed By Lawyers Working In A Global Market.

    As national borders disappear, the ability for global exchange of goods, services and information is creating boundless opportunities and challenges for the legal industry in the U.S.  Law firms, regardless of size continue to expand across borders, collaborate with foreign counsel and form global mergers. New technologies such as websites, blogs, social networking sites, listservs and email have made it easier to develop a global client base.

    While the opportunities to do business abroad may be increasing the traditional view held by many law firms is that only large law firms have foreign clients. A recent online survey conducted by Walker Clark, LLC, demonstrated otherwise. The results from the survey indicated that firms with LESS than 20 attorneys have foreign clients.

    In a recent two day conference on International Corporate Social Responsibility, held in New York City, Elizabeth Wall, an attorney and GC  who has worked on both sides of the Atlantic stated that in today's  24/7 fast paced global community, ALL attorneys need to develop global characteristics.

Here is a condensed version of those characteristics:

1. Take charge in a crisis.

2. Have another language in your marketing arsenal, or at a very basic learn a few practical expressions in the client's mother tongue.

3. Show an interest in current affairs domestic and international.

4. Network consistently, not just online networking, but breaking bread with important alliances of clients.

5. Political adroitness and diplomacy.

6. Cultural awareness, take a course in foreign customs and behaviour.

7. Communication, Communication, Communication at all levels.

8. Be knowledgeable of issues that may impact the client, for example corporate social responsibility.

9. Know the client's strategic vision.

10. Be unfailingly polite to EVERYONE when in client's office.

    On review, many of these traits, apply equally to attorneys who conduct business domestically. What really stuck out in Elizabeth's presentation was her point that a combination of soft and hard skill set was no longer a luxury but a necessity to survive in a global marketplace.

Courting The World's Next SuperPower - India

    With unprecedented levels of growth for several years, an economy poised to grow at 9% in 2008, matched by its growing middle class, a huge youth population, it is no surprise that a number of books on India have appeared in the marketplace.

    Rafiq Dossani, an expert on Indian Affairs, executive director of South Asia programmes at Stanford University, has had a fundamental role in helping introduce progressive reforms in India. He gives us the insider's view in his book: "India Arriving: How This Economic Powerhouse is Redfining Global Business".

I had the opportunity to interview Mr. Dossani on this fascinating subject. The second part of the interview will appear on Friday.

1.        What are some of the pitfalls that foreign companies (medium sized companies) make when they are exploring their options of doing business in India. 

There are two cautions I would offer.  The first is that the initial, or startup, costs are high relative to western startup costs.   These include infrastructure costs and services costs.  For instance, the costs of renting space consist of more than just the monthly rent.   Deposits, usually of up to a year's rent, are common.  In addition, deposits are required for accessing utilities. 

The second is services costs.   Due to the need to register with regulatory authorities, especially if a Mauritius registration is needed, the cost of services (both regulatory and associated legal fees) tend to be high.  Indian legal fees can be as high as western legal fees.

2.        What are some of the romantic notions that westerners hold on it when they start doing business in India? Does this help or impede their success?

The knowledge of English and access to advance professional services are the (mostly) accurate assumptions that westerners begin with.  The inaccurate ones can be more frustrating: the poor quality of infrastructure, the difficulty and high cost of accessing talent and the high startup costs are the main ones.

3.        In which industries/sectors do you see growth in India?

India's growth is driven by domestic demand for utilities, infrastructure and services, such as banking services and real estate.  It is less of an export or manufacturing story, unlike China.  So, the sectors which feed domestic demand are the growth areas.

In services: consulting services, financial services, legal services; in infrastructure and utilities: road building, housing, electric power, telecommunications.  Of course, some sectors that are geared to exports, such as IT, continue to see high growth.

4.        How do westerners navigate through the different levels of bureaucracy?

The bureaucracy operates at different levels.   A westerner's initial contact with the bureaucracy is likely to be at the level of the state rather than the national government.  This is because of India's federalized system.   Bureaucracy at the national level is more straightforward, whereas in the states, the bureaucracy is of varying quality. 

Some states, such as Maharashtra, are relatively advanced and have simple rules.   The bureaucratic encounter also depends on the work to be done.   For eg., the bureaucracy for registering a firm to begin operations as a service company is not oppressive, whereas it can be very difficult to navigate bureaucratic hoops if manufacturing operations are to be established.

It is probably best to appoint a legal advisor early on and rely on the advisor to manage the bureaucracy.

The second part of this interview will appear this Friday.