Gowlings has made the bold decision to become part of a global law firm with offices in 18 cities around the world under the name Gowling WLG. I have been asked by many colleagues why. Interestingly, the same question is never asked by clients — they seem to get it right away.
The short answer is simple: it’s all about our clients and being able to offer a broader, deeper service. The long answer is complicated, if not controversial: it’s about addressing disruptive change taking place alongside the globalization of business.
What was referred to as the “hollowing out” of Canadian-owned businesses several years ago has been followed by further consolidation of international business, with many Canadian office functions being performed outside Canada. A consequence of the globalization of business is that enlarged legal departments are making purchasing decisions outside Canada, beyond the traditional reach of Canadian law firm brand awareness.
Although the Canadian economy avoided the worst of the financial crisis in 2008, business has been stagnant over the past few years, with some areas in decline. Real growth is happening elsewhere in the world, and Canadian businesses are investing where prospects for growth are greater.
On the legal front, the harmonization of law and business culture is making it easier for foreign lawyers to do more for clients. Although a potential opportunity for Canadian lawyers, this is also reducing the need for local advice by foreign businesses investing in Canada. The mobility of lawyers and their ability to work on the “Canada desk” of an international firm is also marginalizing the Canadian component on deals involving Canada.
Although many Canadian lawyers are loath to admit it, the emergence of international law firms in Canada is no longer isolated or tentative. These firms are successful and gaining brand awareness for their ability to work both inside and outside Canada.
While the impact of globalization may be inevitable, it’s not creating an overnight disruptive change in what traditional Canadian law firms are doing. Rather, this change is insidious.
So why haven’t Canadian firms moved more quickly into the global market? For the most part, we have been bystanders to the growth of UK and US firms beyond their borders. There are only a handful of firms in Canada on the Global 100 list. Of those, most of them have chosen to become part of an existing US or UK platform.
Canadians are, by nature, humble if not apologetic. Although the Canadian public would not likely describe Canadian lawyers this way, we certainly are in comparison to our colleagues south of the border. Could it be that, as Canadians, we don’t have the self-confidence to become serious competitors in international legal markets? We do not have the business or financial market base of the US or even the UK, but intrinsically, as Canadian lawyers, we have a great deal to offer international business.
First off, we have the Canadian “brand.” Canadians are seen around the world as respectful, collaborative, culturally diverse, objective and honest. In short, highly professional. Our legal system and business ethics rank among the best. We manage both civil and common law jurisdictions and English and French languages without even noticing. Canadian lawyers are as talented, well-educated and experienced as their US and European colleagues.
In spite of these advantages, few Canadian firms have taken steps to establish substantial practices outside Canada. It makes you wonder, what is holding Canadian firms back from competing on the international stage?
Let me give you Gowlings’ rationale. Fundamentally, we believe in the Canadian brand, and in the value of what we as Canadian lawyers and legal professionals have to offer to businesses around the world. We believe that Canadian lawyering is just as valuable as that of our international competitors in foreign markets.
In co-founding Gowling WLG – the first international legal combination to be co-led by a Canadian firm – we see many advantages. It allows us to offer a much broader service to our Canadian clients in their operations outside Canada. It gives us stronger brand awareness and a stronger sales team outside Canada. It provides greater depth and experience in competing for work in international markets. And most importantly, it allows us to do it our way, co-operatively with a like-minded partner with whom we share a common vision and plan for growth in the sectors and regions where our clients need us to be.
It just makes business sense — and that’s why clients get it.
Scott Jolliffe is a representative of Gowling WLG’s global board. Reach him at [email protected].
