When Law Firms say they have a sector-focus strategy, what does that really mean?

[HendyBabyFutureLawyer]

Hello there, I realize that when researching firms, a lot of them stress that they have a sector-focused strategy. Like NRF, they emphasize that they have a sector approach and are organized by industry lines. Then there are a few US law firms that say that their sector strategy or expertise elevates their client services, etc.

My understanding of a sector-focused strategy or approach is based on the context of investment banks. That sector data goes into the very basis of their advice, i.e., financial modeling assumptions, multipliers, and projections, and as a result, it is crucial that they organize their workforce according to industries such as oil and gas, media, banks, retail, etc. and have their employees specialize in a particular industry. But I can't really wrap my head around how a sector approach is applied in a law firm context because it seems incompatible with differentiating teams based on practice areas in my mind. I would appreciate any help or insight. Thank you.

 

[AlexJ]

There are a few ways-
1. For smaller law firms lawyers may have a broader practice but focused on one industry. For example instead of doing purely M&A work they could do more ‘corporate’ work but in a specific sector.

2. In larger law firms teams can be further sub divided by industry. See for example HSF has an energy disputes team.

3. Grouping teams together. Teams sub divided as above can then be grouped together. Both NRF and White and Case have specialist ‘Africa’ groups that focus on the region. In reality this is grouping together the sun divided teams from 2.

More generally a sector approach normally means that a firm will focus its resources and its efforts to attract work on specific sectors, and will attend industry events and put on talks in the industries that it chooses to focus on.

Hope this helps!

 

[Jessica Booker]

Being a commercial lawyer is often more about the commercial aspect rather than the law. Therefore having more in-depth knowledge of the markets and industries specific clients work in can often work in your favour as you know the commercial decisions/implications for the legal advice you are applying.

Even for many firms that don’t market themselves as having a sector based approach to their work, the reality is the lawyers tend to have more of a specialism and work more heavily with certain types of clients.

 

[AlexJ]

Being a commercial lawyer is often more about the commercial aspect rather than the law. Therefore having more in-depth knowledge of the markets and industries specific clients work in can often work in your favour as you know the commercial decisions/implications for the legal advice you are applying.

Even for many firms that don’t market themselves as having a sector based approach to their work, the reality is the lawyers tend to have more of a specialism and work more heavily with certain types of clients.

Indeed while firms are organised around sectors- see shipping firms such as WFW and HFW.

 

[HendyBabyFutureLawyer]

Yes Thank you for the clarification @AlexJ @Jessica Booker Much appreciated!