Webber Wentzel knocks it out of the park as a 2014 WEF Global Growth Company

Webber Wentzel was one of the 16 African companies that has been selected as a World Economic Forum Global Growth Company for 2014. Not only has the firm seen a tripling of revenue in the last few years, it has found itself as one of the only law firms on the World Economic Forum’s  world-wide list. Given that the firm was established in 1868, it is remarkable that it has just now received this unique accolade. What is it that has driven the recognition of Webber Wentzel’s growth and success? And how is the firm going to grow its influence on the precipice of Africa’s economic boom? David Lancaster, a Senior Partner from Webber Wentzel discusses the firm’s impressive growth, its place in the market, and exactly how it can leverage South Africa’s much bemoaned over-regulated environment. – LF 

ALEC HOGG: Well, in light of Africa Day as the theme across our shows, we give focus to the continent today. Leading South African law firm, Webber Wentzel is one of 16 African companies that has been selected as a World Economic Forum Global Growth Company for 2014. David Lancaster, a Senior Partner at Webber Wentzel, is with us in the studio. David, a firm founded in 1868, my goodness. It is one of the oldest on the African continent, no doubt, or certainly in South Africa, and you’ve now finally made it as a Growth Company. A bit overdue I’d guess.

DAVID LANCASTER: Yes, well, it’s somewhat ironic. We’ve been growing very steadily since 1868, but certainly, in the last five to six years we’ve grown quite exponentially. We’ve tripled in revenue and in size of staff, so that’s been very significant for us and, of course, our International Footprint through our link Linklater’s alliance and our African network has really propelled us on the growth trajectory in the last five years.

ALEC HOGG: What happened? I was having a look through…South Africa has a Big Five of legal firms and I was looking through the Legal Firm of the Year for the last four years. Webber Wentzel – you’ve been kind of growing in stature as well as in size.

DAVID LANCASTER: Yes.

ALEC HOGG: What went on a few years ago?

DAVID LANCASTER: Well, look, one of the criteria was innovation and we had been thinking quite hard about how we should make our business different, to what it was in 1868, so we’ve put in place strategies that we think have worked and obviously, our clients have liked them and there’s been great consolidation in the South African legal market. Many of the mid-tier law firms have disappeared, which means the top five have gotten bigger and stronger. It’s been a combination of things, so in a tough market actually, it’s been really good to grow.

GUGULETHU MFUPHI:  How important is that, making sure that you keep relevant and keep current?

DAVID LANCASTER: It is absolutely critical because technology and so many other things are driving change in our industry. Clients, effectively, want more for less. The old ways of doing things don’t work anymore, and we have to be alive to what they need and that is why this award is so interesting for us because we’re in different company, with the 16 African winners. I don’t think there’s a law firm there.

ALEC HOGG: No, you’re the only one. In fact, there are three unlisted South African companies, of the six from this country, which is unusual.

DAVID LANCASTER: Yes, it’s unusual and I think we want to try to learn from people in other industries, rather than being very inward looking, which is what lawyers have traditionally been for such a long time.

ALEC HOGG: Do you watch ‘The Good Wife’?

DAVID LANCASTER: Yes.

ALEC HOGG: And is accurate?

DAVID LANCASTER: Not really.

ALEC HOGG: So you don’t have those kinds of interesting developments on a day-to-day basis.

DAVID LANCASTER: No.

ALEC HOGG: You run more of a business.

DAVID LANCASTER: It’s more of a business and it is much more commercial. What is very important for us also, just in the light of your earlier conversation, about the changes in the Cabinet is what makes South Africa very competitive, is a strong and independent legal system and law firms and very strong financial institutions. I think that’s really critical for us going forward because those are actually the things that matter. It’s not so much what Government does, as it is preserving those.

ALEC HOGG: Independent judiciary?

DAVID LANCASTER: Independent judiciary is very important and I think we’re still there but I think also, The Big Five independent law firms are strong and it is something that we have a big advantage over, compared to the rest of Africa. The biggest law firm in Africa… Outside of South Africa, Nigeria has 60 lawyers. We have 450, so it shows you how strong and competitive South Africa still is on the Continent.

GUGULETHU MFUPHI:  And this award or the inclusion of being entitled into this award, what does that mean for your business?

DAVID LANCASTER: Well, I think it gives us the opportunity to start talking to some of the other winners and some of the other 360 global companies, in the 65 countries that the World Economic Forum has identified. Again, to learn from people doing different things, as to how we can make our business different, so we’re looking forward to the meeting in China in September, where I will meet some of my counterparts. It’s all about exchanging information and seeing how we can get better doing what we do.

ALEC HOGG: Are there other legal firms?

DAVID LANCASTER: Certainly not in Africa, and I struggle to find any on the 360, on the other list but, no, I don’t think so. This is quite unusual because, of course, we’re not a company. We’re still a partnership, which is quite an old-fashioned concept.

ALEC HOGG: Just as far as The Big Five are concerned (and you’ve given the advantages), are there not disadvantages too, in that it can be a bit of a closed shop?

DAVID LANCASTER: I don’t think so. I think the market is still relatively small here. The consolidation is actually for the benefit of clients. We’ve seen it in Australia quite dramatically, where the number of firms has reduced so in South Africa actually, in real terms, the number of law firms has reduced. The Big Five has gotten stronger, but there are niche and smaller boutiques that play an important role so currently, I don’t think it’s a disadvantage.

GUGULETHU MFUPHI:  I want to come back to the dynamic growth story of this, and you touched on keeping current and remaining relevant to the market, but growth in the legal system often sounds… It’s a difficult concept for me to understand because it seems as though the legal structures are in place.

ALEC HOGG: Fees – it’s called fees.

GUGULETHU MFUPHI:  But how do they change?

ALEC HOGG: They just jack up the prices.

DAVID LANCASTER: Well, no, well, it’s entering its growth in a time where there’s a lot of fee resistance from clients. As I say, clients want much more value add. They want more legal services for less money, so you’ve got to be smart about how you deliver them, so clearly we’re doing something right in that area. South Africa has become a very regulated environment – that’s the other issue. If you think of what the competition laws have done here, it’s a complicated place to do business. Environmental…competition…think of what’s going to happen down the line with fracking. All of that stuff needs lawyers unfortunately, but you do need lawyers who can guide business through a very intricate regulatory environment. I think that’s what changed in South Africa.

ALEC HOGG: And we thank you because you often, your guys, particularly at Webbers, wave flags when they see things in legislation, so you obviously have a lot of people who are keeping an eagle eye on changes that can affect the nation.

DAVID LANCASTER: Yes, absolutely. Well we think we have a role outside of simply just serving clients and making money, and that is to keep the rule of law alive and also to provide the pro bono services that we did – over twelve thousand hours last year – of free, legal advice. That’s really important in a democracy, so we’re very pleased about the award.

ALEC HOGG: Thank you, David. Congratulations. It really is a very prestigious award. That was David Lancaster, Senior Partner at Webber Wentzel, which is one of 16 Global Growth Companies, acknowledged by the World Economic Forum this year.

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