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Winter is coming for LSMUL losers
Last week, the federal government published its new whole-of-government (LSMUL) legal services panel, writes Jacqueline (Jaci) Burns.
Jacqueline (Jaci) Burns
Source: marketingmag.com.au
Sixty-two firms were technically successful, though some will struggle to view their performance as something worth celebrating. Thirteen firms including Hicksons, Piper Alderman and Colin Biggers Paisley were appointed to just one practice area (from total of 27).
The Commonwealth’s decision in large part affirms all these firms married well.
What about the other losers? If all the incumbent firms tendered, 70-plus firms appear to have missed out. What does the carnage tell us?
Here’s my read:
1. It tells me that if you’re a single state firm, you’ve got long odds of working for the Commonwealth. A swag of recognisable brands including Finlaysons (SA), Fisher Jefferies (SA), Lavan Legal (WA), Bennet & Philp (Qld), Wilson/Ryan/Grose Lawyers (Qld), Atanaskovic Hartnell (NSW) and Addisons (NSW) were dropped from the panel.
2. It tells me that if you seek to pursue the Commonwealth, it’s dangerous to be a niche firm. Employment (Harmers, FCB Group, Franklin Athanasellis Cullen, HR Legal, Justitia) and intellectual property specialists (Davies Collison Cave, Marque, Simpsons, Switch Legal, Greenwoods and Herbert Smith Freehills, Arete Group) were particularly hard hit.
3. It’s a sobering reminder to global firms that a big brand will only get you so far. Allen & Overy, Bird & Bird, Clifford Chance, Clyde & Co, Seyfarth Shaw and Hogan Lovells are all out of favour with the Commonwealth.
4. It tells me that strong construction credentials were almost a pre-requisite to success in the property and environment category. There was little cherry picking in this area of law — almost every successful firm was appointed to all practice areas.
5. And most interesting of all, it tells me there are a whole lot of small firms and boutique practices which right now must be questioning their market position, strategy and future. Some of these firms will be takeover targets. All are at risk of losing their government practices because, as is always the case in the aftermath of a major tender, the vultures are circling.
Jacqueline (Jaci) Burns is CMO at Market Expertise.
