Royal Dutch Shell review to slash law firm roster

Royal Dutch Shell has begun a full-scale review of its legal advisers with a view to reducing the total number of firms on its roster.

The oil company is ­looking for firms to provide ­global advice across eight different practice areas: M&A portfolio; project development; antitrust; IP services, including patent and trademark applications; compliance; antibribery and corruption support; ­international dispute ­resolution; and trading.

Shell has previously been advised by a number of firms, including Allen & Overy, Baker & McKenzie, Clifford Chance, Denton Wilde Sapte, Simmons & Simmons and Slaughter and May.
Its current roster of firms runs into double figures, but general counsel for projects and technology Brad Nielson told The Lawyer that costs pressures generated by the wider economic climate will force the corporation to streamline.

“We hope to narrow the list considerably,” he said. “[We want between] five and 10 firms - [probably] towards the lower end.”

Nielson added that Shell would be looking for firms to propose alternative billing structures as part of their respective pitches.

“A key focus is [on having] firms with people in the right places to provide the right support,” he explained. “We want firms that are truly interested in being a ­partner, and cost is always a critical element in that. We need to move away from the ­standard billable hour.”

Shell is evaluating responses to a request for information. Firms will be appointed for three years.

Eastwell to join Links spin-off firm

Eastwell, who managed Linklaters’ CEE offices from 1999 to 2003, retires from the firm this month after 30 years there. He will join ­Kinstellar as a senior ­consultant in January 2010 to set up its London base.

“The planned role for me is a fairly wide-ranging ­advisory and ­consultancy brief to help maintain the Linklaters relationship,” said Eastwell. “But it’s also to help build relationships with firms in London, ­particularly those that don’t have a presence in ­emerging Europe, and in emerging Europe where Kinstellar doesn’t have offices.

“I know and respect the four ex-Linklaters equity partners driving Kinstellar and think they have a great opportunity to carve ­themselves a niche as a ­market leader in emerging Europe.”

Kinstellar  managing ­partner Jason Mogg said: “Nick’s a tremendous asset because he’s very much a player in the London market and very well-plugged-in in this part of the world.”

Kinstellar also hired ex-Linklaters banking partner Charles Dunn last week.

Cult of responsibility

In the past year we’ve seen Freshfields champion the cause of school governors, Clifford Chance launch an internal CR awards event and now ­Simmons is making CR an integral part of its
three-year plan.

I can hear the objections already. Isn’t a law firm’s first duty to provide legal advice to clients rather than operate as an extension of social services?

Well, yes, but that’s a tad reductionist given how many clients want to see firms’ commitment in this area. Most organisations need an emotional pull to their business - particularly in the law, given that most lawyers start off as idealists wanting to make a difference. In fact, it has become a surprisingly powerful motivational tool in the workplace.

Simmons’ plans are astonishingly detailed. One of the more eyecatching ideas is having a handful of blogs a week from the partners involved. Obviously there is always a danger that they might come over a bit Martin Lukes, but I’ve seen four of the blogs so far and all avoid that terrible piety that occasionally afflicts worthy projects. Two of the blogs, by the way, were great and made me want to know much, much more, which I suppose is the point.

Clearly the scheme raises questions. How do you measure your CR impact? Can CR hours really be treated the same as billable hours given that firms are profit-making businesses? But what’s notable with Simmons is its old-fashioned talk of a moral ­obligation to do this. Furthermore, by removing logistical and organisational barriers from getting involved, the take-up is likely to be high.

CR has always been an integral part of our ­coverage at The Lawyer, but we want to take it a step further. We plan to go behind the scenes and explore the difference these projects make from the beneficiaries’ point of view. These could be Hackney pupils, aspiring musicians or would-be entrepreneurs.

There are some fantastic stories out there, many of which are genuinely inspiring. If your firm, department or chambers has some projects that you think we should cover, then get in touch.