AMLAW 100 firm with offices in Europe The Problem
The firm wanted to: (a) review the strengths and weaknesses of its European operations;
(b) determine whether its core practices and client portfolio in the United States were sufficiently aligned with its activities in core areas and industry sectors in Europe; and (c) to formulate a viable and sustainable European strategy for the firm. Our Approach
Our first intervention was to identify the existing and potential synergies between the client service offerings in the United States and Europe, analyzing the scope and substance of the added value of a European service offering and determining the potential for growth, cross-over, revenue growth and profitability. We then compared this with the overall strategic agenda and action planning of the firm in order to determine whether such a high-impact, resource-intensive and time-consuming project could be absorbed by the firm (and its leadership) and whether it would receive the attention necessary. As a third step we researched the “mindset” and readiness of a large number of partners to ensure that, once a viable European strategy had been designed, execution would be successful.
In parallel we undertook an in-depth qualitative and quantitative analysis of the European operations in terms of its client portfolios (quality, revenue generation, profitability and potential), the main trends in key financial-economic performance indicators over the last five years, the currently available competences and capabilities of its professionals and the market/competitive positioning of the firm in Europe. Our Solution
Despite growth potential and the potential to develop a distinctive service offering for existing clients, both in Europe and the United States, we recommended closing down the European operations due to lack of alignment between the practices, type of clients and engagements in most practices/sectors and available resources and the level of investment that would be required to optimize alignment, realize growth potential and acquire the necessary competence and capabilities in Europe. The firm has indeed closed down its offices and we have assisted the firm with this process as well as ensuring that it is partnered with the right referral firms in Europe.