Australasian Lawyer issue 2.01

A GOOD HARVEST SPRING ARRIVES EARLY FOR AGRIBUSINESS LAWYERS australasianlawyer.com.au Issue 2.1

BRISBANE REPORT QUEENSLAND LAWYERS’ PREDICTIONS FOR 2015 POSTGRADUATE CHECKLIST CHOOSING A POSTGRADUATE LAW DEGREE

WISE COUNSEL Bauer Media general counsel Adrian Goss on the changes and challenges faced by in-house lawyers

Webb Henderson is a premium specialist law firm.

We provide expert legal and strategic advice on commercial, corporate and regulatory issues, with a focus on telecommunications and media, competition and regulation, litigation including class actions, FMCG and health.

Our partners have deep industry expertise developed over years of concentrated focus. Our lawyers have been drawn from highly regarded domestic and international firms and institutions; our judgment can be relied upon; our depth of experience in our specialist areas is unrivalled.

We are privileged to work with industry-leading clients, providing strategic advice to leading businesses, Government-owned entities and regulators.

We are trusted commercial advisors and build close relationships. We provide concise, intelligent and direct advice and pragmatic business solutions in tune with our clients’ business.

Commercial transactions

We measure our success by the outcomes delivered and the value our clients obtain from our work.

Our small and focused teams are highly effective.

Dispute resolution

We are integrated and international allowing us to deliver a seamless integrated service in a way that our clients notice.

Competition law Corporate advisory Industry regulation Telecommunications and media

Sydney Auckland Singapore For more information visit www.webbhenderson.com Or contact Angus Henderson (+61 2 8214 3501) or Andrew Christopher (+61 2 8214 3510)

AUSTRALASIANLAWYER.COM.AU

Contents

16 COVER STORY

Wise counsel Bauer Media general counsel Adrian Goss on the changes and challenges faced by in-house lawyers

26 FEATURES 20 | A good harvest Free trade agreements and growing investment interest herald strong growth for Australia’s agribusiness sector

20

30 | Brisbane special report Queensland lawyers give their predictions for 2015 38 | In search of new recruits Legal recruitment experts share their predictions for the year ahead

42 | Postgraduate checklist Educators reveal what lawyers considering postgraduate study should look for

48

0 TO 100

Clyde & Co Australia managing partner John Edmond shares the journey of bringing an international brand to the Australian legal market

48 | Land of opportunity Allens partner David Holme shares insights from his seven years as a foreign legal advisor in Jakarta

REGULARS

52 | If the shoe fits Shoes of Prey’s Jodie Fox tells of her journey from lawyer to online entrepreneur

04 | Legal insight: Pro bono practices of of Australia’s largest law firms 06 | Appointments 10 | Deals round-up 14 | News analysis: Counting heads

FEBRUARY 2015 | 1

EDITOR’S LETTER / 2.1

‘NEW YEAR, NEW YOU!’ COPY & FEATURES

Kathryn Crossley

If you pick up a magazine at this time of year, you will likely spot an article or two about making New Year’s resolutions become a reality: that promotion, getting fit, reaching a savings goal, finally learning another language.

You will not find articles on these topics in the first issue of Australasian Lawyer for 2015, but the thing that always strikes me about the weeks following 1 January each year is the optimism: no matter who you talk to, a positive outlook pervades almost every prediction for the 12 months to follow.

The lawyers interviewed for this issue largely expressed the view that 2015 will be a good year for lawyers and the legal profession – a stark contrast to many of the interviews I conducted earlier in 2014.

Then, many were of the view that conditions were improving but confidence was lacking: clients were watching and waiting to see if the time was right to make a move. But if everyone is biding their time, there will be no signs – someone always has to go first.

It feels like momentum is finally growing, but unlike New Year’s optimism which typically dissipates by the end of February, let’s hope this upswing in activity stays around.

While I am on the topic of things to look forward to, I am delighted to invite you to the first Australasian Law Awards. Nominations are currently open and I look forward to seeing you at the event in Sydney on 21 May. I expect there will be a lot to celebrate!

Kathryn Crossley, editor, Australasian Lawyer

EDITOR Kathryn Crossley CONTRIBUTOR Karen Gately PRODUCTION EDITORS Roslyn Meredith, Moira Daniels, Clare Alexander

ART & PRODUCTION DESIGN MANAGER Daniel Williams DESIGNER Kat Vargas PHOTOGRAPHY Thilo Pulch (www.pulchphotography.com)

SALES & MARKETING SALES MANAGER Paul Ferris TRAFFIC MANAGER Abby Cayanan MARKETING AND COMMUNICATIONS MANAGER Lisa Narroway

CORPORATE CHIEF EXECUTIVE OFFICER Mike Shipley CHIEF OPERATING OFFICER George Walmsley MANAGING DIRECTOR Justin Kennedy CHIEF INFORMATION OFFICER Colin Chan HR MANAGER Julia Bookallil Editorial enquiries Kathryn Crossley tel: +61 2 8437 4702 kathryn.crossley@keymedia.com.au Advertising enquiries Paul Ferris tel: +61 2 8437 4703 paul.ferris@keymedia.com.au Subscriptions subscriptions@keymedia.com.au Key Media keymedia.com.au Key Media Pty Ltd, regional head office, Level 10, 1–9 Chandos St, St Leonards, NSW 2065, Australia tel: +61 2 8437 4700 fax: +61 2 9439 4599 Offices in Auckland, Toronto, Denver, Manila australasianlawyer.com.au Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as Australasian Lawyer magazine can accept no responsibility for loss

CONNECT Contact the editor:

kathryn.crossley@keymedia.com.au

2 | FEBRUARY 2015

Printed on paper produced from 100% sustainable forestry, grown and managed specifically for the paper pulp industry

Most Innovative Australian Law Firm 2014 Financial Times Asia-Pacific Innovative Lawyers Awards

Most Innovative Law Firm 2014 BRW Client Choice Awards

Best Law Firm Revenue $50 to $200 million 2014 BRW Client Choice Awards

Innovation

Seeing what others haven’t seen.

Innovation involves taking conventional, established practices and making them better, smarter, more successful.

At Gilbert + Tobin, we’ve been a leader in innovation in the legal market for over 25 years.

We have assisted leading Australian and international businesses with innovative solutions to their commercial challenges. This is why Gilbert + Tobin has become the firm of choice for our clients’ most important work.

Sydney Melbourne Perth gtlaw.com.au

LEGAL INSIGHT

For the

public good Research by the National Pro Bono Resource Centre offers insight into the changing pro bono practices of large Australian law firms

2.27%

27%

68%

93%

Average pro bono hours as a percentage of firms’ total practice hours in 2014

of firms worked with in-house clients on pro bono projects in FY2014

of firms have a pro bono policy

of firms have a dedicated pro bono lawyer

NATURE OF PRO BONO WORK UNDERTAKEN

BY FIRMS

35%

For individuals

PRO BONO WORK PER LAWYER PER YEAR

2010

2012

2014

29 hrs

29.9 hrs

of pro bono work per lawyer per year

of pro bono work per lawyer per year

31.7 hrs

of pro bono work per lawyer per year

65%

For organisations 4 | FEBRUARY 2015

AUSTRALASIANLAWYER.COM.AU

PERCENTAGE OF LAWYERS UNDERTAKING PRO BONO WORK

59%

LAW FIRMS THAT RECOGNISE PRO BONO WORK WITH FULL BILLABLE HOUR CREDIT

64% 53%

TOP FIVE AREAS FOR PRO BONO WORK IN 2014

Employment law

51%

50%

40% Governance

Commercial agreements 2010

2012

2014

2010

44%

2012

41%

2014

2010

34% 24%

2012

Concern about conflicts of interest with fee paying clients

TOP AREAS WHERE FIRMS REJECT REQUESTS FOR PRO BONO ASSISTANCE

2014 Family law (not including family violence)

FIRMS’ TOP PRO BONO PROGRAM CHALLENGES Firm capacity

Deductible gift recipient status (DGR) applications

Intellectual property

31%

2010

2014

FIRMS UNDERTAKING INTERNATIONAL PRO BONO WORK

FIRMS UNDERTAKING PRO BONO LEGAL WORK IN RURAL, REGIONAL AND REMOTE AREAS

45%

2012

Insufficient expertise in relevant areas of law Criminal law

Source: Fourth National Law Firm Pro Bono Survey: Australian firms with fifty or more lawyers, National Pro Bono Resource Centre (December 2014).

FEBRUARY 2015 | 5

NEWS / APPOINTMENTS

Appointments

Presented by

LATERAL PARTNER APPOINTMENTS NAME

PRACTICE AREA

LEAVING

GOING TO

Amanda Banton

Restructuring, insolvency and litigation

Piper Alderman

Squire Patton Boggs

Graeme Buckley

Commercial, property, energy and resources

Cridlands MB

HWL Ebsworth

Liza Carver

Competition

Ashurst

Herbert Smith Freehills

Cameron Cheetham

Restructuring

Kirkland & Ellis

Henry Davis York

Peter Crethary

Government

DibbsBarker

Moray & Agnew

Andrew Croxford

Insurance

Gadens

Mills Oakley

Eagul Faigen

Real estate

Norton Rose Fulbright

DLA Piper

Richard Giles

Government, commercial, property, energy and resources

Cridlands MB

HWL Ebsworth

Anthony Hillary

Insurance and civil litigation

Lawson Smith Lawyers

HWL Ebsworth

Frazer Hunt

Insurance

Piper Alderman

Mills Oakley

Anna Jackson

Insurance

Lawson Smith Lawyers

HWL Ebsworth

David Johns

Insurance and litigation

Lawson Smith Lawyers

HWL Ebsworth

Charlie Martel

Commercial, corporate, property

Cridlands MB

HWL Ebsworth

Tim Mathers

Real estate

Herbert Smith Freehills

DLA Piper

Chris McDuff

Litigation

Cridlands MB

HWL Ebsworth

Tony Morgan

Property and corporate

Cridlands MB

HWL Ebsworth

David O’Farrell

Restructuring and insolvency

Minter Ellison

HWL Ebsworth

Michael Ricketts

Insurance and civil litigation

Lawson Smith Lawyers

HWL Ebsworth

Richard Smith

Insurance

Lawson Smith Lawyers

HWL Ebsworth

Helen Stavridis

Insurance

DW Fox Tucker

Sparke Helmore

Michael Tilley

Insurance and civil litigation

Lawson Smith Lawyers

HWL Ebsworth

Tania Zordan

Corporate and commercial

Zordan Legal

Piper Alderman

6 | FEBRUARY 2015

AUSTRALASIANLAWYER.COM.AU

PARTNER PROMOTIONS FIRM

LAWYERS PROMOTED

Corrs Chambers Westgarth

Matthew Critchley, Michael do Rozario

Lavan Legal

Tamara Heng, Greg Nairn

Hall & Wilcox

Oliver Jankowsky

Henry Davis York

Michael Sullivan

SENIOR ASSOCIATE APPOINTMENTS FIRM

LAWYERS PROMOTED OR LATERALLY APPOINTED

Corrs Chambers Westgarth

Natalia Blecher, Oliver Carrick, Nicholas Chenu, Marie Costa, Astrid Crowe, Simon Doyle, Ruth Forman, Nerida Haberkern, Katherine Hawker, Amelia Ho, Grant Mason, Kylie Mathison, Alex Murphy, Jey Nandacumaran, Melissa Pratt, Clementyne Rawlyk, Marianna Schneider, Michael Song, Daniel Thompson, Jeremy Thompson, Ben Williams, Norah Wright

Hall & Wilcox

Liam Campion, Nick Rimington

Kliger Partners

Colin McCaul

 Maddocks appoints permanent CEO Maddocks formally appointed Michelle Dixon as its CEO in December. Dixon assumed the role of interim CEO at the beginning of 2014, and was appointed permanently following a partner vote.

Dixon, who has been at Maddocks for almost 20 years, told Australasian Lawyer that she feels privileged to be in a role that brings together the firm’s board, partnership and people to deliver its strategic direction.

“I saw the progression into an interim CEO role at the start of the year as a real challenge and opportunity,” she said.

“I was welcomed warmly by the partnership and staff into the role and, while a little reluctant to step away from a large part of my practice as a litigation partner, I’m delighted to have been formally appointed, and to have the opportunity to lead the firm on its upward trajectory.”

FEBRUARY 2015 | 7

NEWS / APPOINTMENTS

OTHER

 HWL Ebsworth grows in SA and the NT HWL Ebsworth’s expansion has continued, with the firm announcing in December that it had acquired South Australia-based Lawson Smith Lawyers, and that it will launch offices in the Northern Territory next year.

Lawson Smith partners Richard Smith, Michael Tilley, Anthony Hillary, David Johns, Michael Ricketts and Anna Jackson, along with 10 legal and support staff, joined the HWL Ebsworth Adelaide office in January. The acquisition follows the launch of HWL Ebsworth’s South Australia practice in July 2014.

HWL Ebsworth managing partner Juan Martinez has said that the firm has plans for further growth in South Australia. “Our stated intention to expand our South Australian presence doesn’t come to an end with this acquisition. We will continue to aggressively pursue growth opportunities within this market.”

In the Northern Territory, HWL Ebsworth has been joined by Cridlands MB partners Graeme Buckley, Tony Morgan, Richard Giles, Charlie Martel and Chris McDuff, plus lawyers and support staff from the firm. These new recruits will form HWL Ebsworth’s new Darwin and Alice Springs offices, to open in February.

8 | FEBRUARY 2015

FIRM

LAWYERS PROMOTED OR LATERALLY APPOINTED

TITLE

Rachel Blake

Moray & Agnew

Special counsel

Tony Britten- Piper Alderman Jones

Managing partner

Lee Carroll

Corrs Chambers Westgarth

Special counsel

Sharon Cook

King & Wood Mallesons

Managing partner, clients

Hayden Flinn

King & Wood Mallesons

Co-chief executive, Hong Kong practice

Susie Inat

Minter Ellison

Special counsel

Isaac Lin

Corrs Chambers Westgarth

Special counsel

Colleen Martin

Corrs Chambers Westgarth

Special counsel

James Morley

Corrs Chambers Westgarth

Special counsel

Caroline Ryan

Corrs Chambers Westgarth

Special counsel

David Starkoff

Corrs Chambers Westgarth

Special counsel

Zhang Yi

King & Wood Mallesons

Co-chief executive, Hong Kong practice

 Piper Alderman begins new year with new managing partner Commercial property lawyer Tony Britten-Jones has taken the reins as Piper Alderman’s new national managing partner. He has previously served as deputy managing partner and head of the firm’s national Property and Projects group. Britten-Jones succeeds Tony Phelps, who led the firm for four and a half years.

The firm also announced that Gordon Grieve has been reappointed as chairman.

Firm Profile

NEW ZEALAND INTRODUCES BOTTOM LINES FOR FRESHWATER MANAGEMENT DRIVERS FOR FRESHWATER MANAGEMENT In 2011, against growing concern about the declining availability and standard of freshwater in New Zealand, the Minster for the Environment issued a National Policy Statement for Freshwater Management (2011 NPS).

National policy statements are issued under the Resource Management Act 1991 for matters of national significance. The Minster for the Environment can use a national policy statement to direct regional councils on how to manage resources and activities, either through regional and district plans or when considering resource consent applications.

The 2011 NPS directed councils, through their regional plans, to set limits on the amount of water that could be taken from, or contaminants that could be discharged to, fresh water in order to maintain or improve freshwater quality in their region. The 2011 NPS was always intended to be amended to provide more direction to councils in consistently applying its requirements.

NATIONAL BOTTOM LINES FOR FRESHWATER MANAGEMENT INTRODUCED In 2014 the Minister for the Environment issued a replacement National Policy Statement for Freshwater Management (NPS). The NPS introduced a national objectives framework that directs how councils set objectives, policies and rules about fresh water in their regional plans. Councils must establish freshwater management units (FMU) across their regions and identify the values (eg irrigation, swimming) that communities hold for the water in each FMU. The NPS provides for ecosystem health and human health for recreation as compulsory national values which must be included in regional plans. The NPS includes nationallyset minimum acceptable states for these two values, called national bottom lines.

Having established FMUs, councils must gather water quality and quantity information on an FMU to assess its current state and decide the water quality objective or goal (grouped into A, B or C bands) for each value the community

has chosen based on, amongst other things, the implications for resource users and the community.

In order for this process to work, the NPS requires councils to account for all water taken out of FMUs, as well as the sources of contaminants going into them. They must collect data and assess all water takes (including those permitted by regional plan rules, stock/domestic water and unauthorised takes) and all sources of contaminants. This will provide councils and their communities with information to understand the impacts of freshwater objectives before they are set in regional plans, including whether an FMU is over-allocated, or if there is room for further allocation.

Councils must maintain or improve water quality within their region and cannot set an objective below a national bottom line unless: • The water quality is naturally below the bottom line (for example a native bird colony nesting in a river bed causing high E. coli levels downstream) • Significant existing infrastructure (such as hydro-electric power stations) means water quality is below the bottom line¹ or • On a transitional basis.

KEY IMPLICATIONS There are several potential benefits from the NPS, including: • Increased community engagement, with communities being involved from the outset in developing plans that consider and reflect community interests in respect of each FMU • Reduced scope for legal challenge specifying the level of contaminants that must be managed to achieve national bottom lines² for ecosystem health and human health for recreation ‘settles the science’, thereby reducing the scope of challenge through the plan development process • Greater transparency as to the state of New Zealand’s freshwater resource through the outputs of the accounting process used wisely, this could be a positive for our exporters

• Improved water quality - however, it will be up to councils, in consultation with their communities, as to whether they decide to improve water quality or maintain the status quo.

There are also challenges accompanying the NPS. Councils must consider the costs involved when they make choices about how and over what timeframe they act to achieve their freshwater objectives. Councils also face costs establishing systems to account for the water taken out, and the contaminants (especially for diffuse discharges) getting into fresh water.

The setting of FMUs will be challenging.

FMUs should reflect common objectives for the waterbody or bodies within it, so that representative monitoring sites can be readily established. FMUs should be hydrologically socially and culturally coherent enabling communities and iwi with common interests and values to contribute to common objectives.

Councils must have accounting systems by August 2016 and must amend their regional plans to give effect to the NPS by 2030.

Significant users of freshwater resources should monitor councils as they amend their regional plan to reflect the NPS (eg whether new limits imposed affect business), and get involved in the process.

This article was written by David Allen (partner) and Julia White (senior associate) - both based in the Wellington office of Buddle Findlay. David and Julia specialise in resource management, environmental and local government law.

David Allen DDI: +64 4 462 0423 david.allen@buddlefindlay.com

Julia White DDI: +64 4 498 7331 julia.white@buddlefindlay.com

¹ The relevant Schedule to enable this exception is yet to be completed. ² Or objectives that are above bottom lines (eg within A or B bands) if a council chooses.

www.buddlefindlay.com

NEWS / DEALS

Deals round-up

US$2.8bn Donggi-Senoro Liquefied Natural Gas project financing Allen & Overy took a key advisory role on Indonesia’s fourth LNG project. The DonggiSenoro Liquefied Natural Gas project had a number of novel elements: it is the first LNG project in the country to adopt a downstream development model which allows for separate development of upstream and downstream businesses.

In addition, the project is only the second non-integrated merchant LNG plant in the world.

Allen & Overy advised the project company, PT Donggi Senoro LNG, in relation to the financing of the project. One of the lead partners from Allen & Overy, Scott Neilson, described the deal as “the first true project financing in the LNG sector in Indonesia”.

10 | FEBRUARY 2015

Transaction

Value (A$)

Adviser

Client

Lead lawyer(s)

Aconex IPO

$312.3m

Herbert Smith Freehills

Aconex Limited

Michael Ziegelaar

Allianz acquisition of Northern Territory government’s general insurance business

Undisclosed

Allens

Allianz Australia

Jeremy Low

King & Wood Mallesons

Northern Territory government

Stephen Jaggers, Shannon Finch, Paul Crawford, Dan Kynaston, Philip Ward, Kate Jackson-Maynes, Paul Smith

Anchorage Capital Partners acquisition of Pacific Brands’ Brand Collective business

Undisclosed

King & Wood Mallesons

Westpac

Richard Hayes

APA Group acquisition of Queensland Curtis LNG pipeline from BG Group

US$5bn

Allens

APA Group

Guy Alexander, Kate Towey

King & Wood Mallesons

BG Group

Louis Chiam, Vishal Ahuja

Boral sale of Melbourne Western Landfill to Transpacific Industries Group

$165m

Allens

Transpacific Industries Group

Robert Pick

Casella Family Brands acquisition of Peter Lehmann Wines

Undisclosed

Barraket Stanton Lawyers

Casella Wines

Kenneth Stanton

CCCC International proposed acquisition of John Holland from Leighton Holdings

$1.15bn

Allens

CCCC International Holdings

Wendy Rae

Citadel Group IPO

$100m

Gadens

Citadel Group Limited

Jeremy Smith

CorVal Partners and RF Capital purchase of poultry processing facilities from Inghams Property Management

$100m

Allens

CorVal and RF Capital

Victoria Holthouse

Daiwa House and Sumitomo Forestry Australia property development joint venture

$230m

Lander & Rogers

Sumitomo Forestry Australia

Peter Willcocks

Donggi-Senoro Liquefied Natural Gas project financing

US$2.8bn

Allen & Overy

PT Donggi Senoro LNG

Adam Stapledon, Scott Neilson

AUSTRALASIANLAWYER.COM.AU

MAKE SURE YOUR FIRM’S WORK IS RECOGNISED To ensure your firm and its lawyers get the recognition they deserve for their fantastic work, send all your deal details to kathryn.crossley@keymedia.com.au

Transaction

Value (A$)

Adviser

Client

Lead lawyer(s)

DUET Group entitlement offer

$397m

Allens

DUET Group

Marc Kemp

Ashurst

Macquarie Capital and UBS AG

Sarah Dulhunty

Fleet Partners notes issuance

$277m

King & Wood Mallesons

Fleet Partners

Anne-Marie Neagle

Godfreys proposed IPO

$110.8m

Clayton Utz

Godfreys Group

Brendan Groves, John Brewster

HOPU Investments’ investment in Paladin Energy

$205m

King & Wood Mallesons

HOPU Investments

David Friedlander, Malcolm Brennan, Paul Schroder

JBS Australia acquisition of Primo Foods

$1.45bn

Allens

JBS Australia

Richard Kriedemann, John Beckinsale

Minter Ellison

Affinity Equity Partners

Martin Bennett

KKR investment in Sundrop Farms

Undisclosed

King & Wood Mallesons

KKR

Lee Horan, Mark McNamara, YuenYee Cho, Claire Rogers, James Forrest

Local Government Funding Vehicle municipal note program establishment

$240m

Allens

Municipal Association of Victoria

James Darcy

Gilbert + Tobin

Commonwealth Bank of Australia and National Australia Bank

Duncan McGrath, Benjamin Downie

Macquarie Radio Network and Fairfax Radio Network merger

$200m

Minter Ellison

Macquarie Radio Network

Daniel Scotti

Mirvac acquisition of Birkenhead Point Shopping Centre

$310m

DLA Piper

Mirvac Group

Les Koltai

National Australia Bank green bonds issuance

$300m

King & Wood Mallesons

National Australia Bank

Anne-Marie Neagle

Nido Petroleum acquisition of Galoc Production Company

US$108m

Allens

Nido Petroleum

Andrew Pascoe

Clayton Utz

Otto Energy Limited

Matthew Johnson, Liz Humphry

$240m Local Government Funding Vehicle municipal note program establishment Allens and Gilbert + Tobin have advised on the establishment of the first municipal notes program in Australia. The Local Government Funding Vehicle enables local governments to combine funding requirements to efficiently access the capital markets.

The first medium term note issue settled in November. The bonds were issued by a special purpose trust, which has made loans to 30 participating councils to fund municipal capital requirements.

Allens advised the Municipal Association of Victoria while Gilbert + Tobin advised the Commonwealth Bank of Australia and National Australia Bank.

FEBRUARY 2015 | 11

NEWS / DEALS

RMB1bn NSW Treasury Corporation RMB bond issuance King & Wood Mallesons has advised on an Australian first. The firm acted for NSW Treasury Corporation on its first issuance of Renminbi-denominated bonds, making the one-year bonds the first Chinese currency bonds to be issued by an Australian government treasury. The bonds are listed on both the ASX and SGX-ST. The firm also recently advised on the establishment of a local RMB clearing bank, and partner Ken Astridge said the bond issuance “marks another significant step in the development of a Renminbi hub in Sydney”.

12 | FEBRUARY 2015

Transaction

Value (A$)

Adviser

Client

Lead lawyer(s)

Northern Beaches Hospital

Undisclosed

Herbert Smith Freehills

NSW government

David Hugo

Minter Ellison

Paul Paxton, Stewart Nankervis

NSW Treasury Corporation RMB bond issuance

RMB1bn

King & Wood Mallesons

NSW Treasury Corporation

Ken Astridge, Scott Farrell

oOh!media IPO

$365.5m

Herbert Smith Freehills

oOh!media

Philippa Stone, Philip Hart, Mark Crean, Mark Currell

Optus agreement with NBN Co on HFC network

$800m

Minter Ellison

Optus

Anthony Lloyd

Orica sale of Chemicals business

$750m

Gilbert + Tobin

Orica Limited

Neil Pathak, Ben Macdonald

Pacific Smiles IPO

$267m

Gilbert + Tobin

Pacific Smiles

Tim Gordon, Hiroshi Narushima

Peabody Energy and Glencore coal joint venture

Undisclosed

Ashurst

Peabody Energy Australia

Murray Wheater

King & Wood Mallesons

Glencore

Nicholas Pappas

Perpetual Equity Investment Company IPO

$250.4m

DLA Piper

Perpetual Equity Investment Company

Martin Jamieson

Places Victoria sale of residential development sites

$180m

Allens

Places Victoria

Michael Graves

Premier Fruits Group acquisition of Freshway Farms and Stam Fruit Supply

Undisclosed

Holding Redlich

Premier Fruits Group

William Khong

QBE subordinated notes issuance

US$700m

King & Wood Mallesons

QBE Insurance

Ian Paterson, Anne-Marie Neagle, Evie Bruce

Shenzhen Infinova and Infinova International acquisition of Swann Communications

US$85m

HWL Ebsworth

Shenzhen Infinova and Infinova International

Paul Stephenson, Sanushka Seomangal

Singapore Post acquisition of Couriers Please

$95m

Allen & Overy

Singapore Post

Michael Reede, Connell O’Neill

Starwood Hotels and Resorts sale of Sheraton on the Park, Sydney

$463m

Baker & McKenzie

Starwood Hotels and Resorts

Graeme Dickson, David Jones

WWW.AUSTRALASIANLAWYER.COM.AU

Transaction

Value (A$)

Adviser

Client

Lead lawyer(s)

Steadfast takeover of Calliden

$105.4m

Hall & Wilcox

Calliden Group

Danny Herceg, James Morvell

SurfStitch IPO

$182.8m

Herbert Smith Freehills

SurfStitch Group

Philippa Stone, Bradley Russell, Philip Hart

Sydney Light Rail PPP

$2.1bn

Ashurst

Transport for NSW

Lee McDonald

Norton Rose Fulbright

ALTRAC Light Rail Consortium

Jo Crew

Gilbert + Tobin

TPG and partners: TPG Asia, PAG Asia Capital, Ontario Teachers’ Pension Plan

Neil Pathak

Herbert Smith Freehills

UGL Limited

Philippa Stone, Phillip Hart

UGL sale of property services business

$1.2bn

University of Wollongong student accommodation expansion project

$250m

Ashurst

University of Wollongong

Rob White, Melinda Harris, Harvey Weaver

Veda Group acquisition of The Prospect Shop

Undisclosed

Allion Legal

Veda Group

Jon Cane

Virgin Australia senior notes issue

US$300m

Herbert Smith Freehills

Virgin Australia

John Angus

Vocus Communications and Amcom Telecommunications scheme implementation agreement

$635m

Clayton Utz

Amcom Telecommunications

Mark Paganin

Wattle Point Wind Farm refinancing

$161m

Herbert Smith Freehills

Wattle Point Wind Farm

Gerard Pike

Wesfarmers acquisition of Pacific Brands’ Workwear Group

$180m

Gilbert + Tobin

Wesfarmers

Neil Pathak

WestConnex road project

$14.9bn

Allens

WestConnex Delivery Authority

Leighton O’Brien

$14.9bn WestConnex road project

Ashurst

Angus Foley

Westpac Rescue Helicopter successful tender to NSW Health Medical Retrieval Network

Undisclosed

Sparke Helmore

Westpac Rescue Helicopter Service

Tony Deegan

Woodside Petroleum acquisition of Wheatstone and Kitimat LNG projects from Apache Corporation

US$2.75bn

Clifford Chance

Apache Corporation

Michael Lishman, Sean Houthuysen

Allens and Ashurst have advised the WestConnex Delivery Authority on the first construction contract for the WestConnex project. Under the contract, the Rizzani De Eccher Leighton joint venture will widen 7.5km of Sydney’s M4 motorway.

The widening contract is the first stage of the $14.9bn project.

Construction on the project will begin this year. When complete, the 33km corridor will link west and south west Sydney with the city, airport and port precincts. It is one of the largest transport projects currently being undertaken in Australia.

FEBRUARY 2015 | 13

NEWS ANALYSIS

Counting heads In the past year, many of Australia’s largest firms have reduced their lawyer numbers. Kathryn Crossley spoke with firms about what’s driving the downsizing

When Australasian Lawyer published its 2014 Fast Firms list (AL 1.5) it was clear that although a number of Australian law firms were growing, and growing quickly, headcount numbers at many of the country’s largest firms had declined during the previous year.

Many of the big firms reported headcount declines of close to 10%, and some even higher than that.

Maddocks is one firm that reduced its headcount last financial year; its 2014 headcount of 261 partners and lawyers was 9% down on the previous year’s number. CEO Michelle Dixon said the key driver behind larger firms’ headcount decreases has been the need to re-evaluate their offerings to better suit client needs.

“I think the larger firms have been very focused on getting their service offering right, so part of that is making sure that we’ve got the right lawyers on the ground to provide the services to the clients that we’re working with. So that 14 | FEBRUARY 2015

necessarily means a bit of introspection and I think some firms decided that certain areas of practice aren’t the areas of practice that they want to be in,” she said.

“I think with some of the very large firms, in particular the international firms, there’s been quite a conscious decision to either get out of particular areas of practice or alternatively some teams have upped and left because they think that those firms will no longer invest in them.”

According to DLA Piper’s Australia managing partner John Weber, 2014’s headcount declines are part of a continuing trend. “The legal market in Australia is fundamentally altering itself and has been over a number of years,” he said. “Some of what were largely domestic firms have actually begun the process of strategically narrowing their focus prior to the global financial crisis and prior to the entrance of lots of foreign law firms into the market.”

AUSTRALASIANLAWYER.COM.AU

DOWNSIZING DILEMMAS With firms focused on perfecting their service offerings, the approach to reducing headcounts has been a targeted one. “We’re not in a situation where we’re just going through and doing retrenchments or doing anything else to try and reduce headcount – that’s just not the space we’ve been in. I think most firms have reduced their numbers but we’re not seeing what some firms were doing in the GFC and having voluntary redundancies, or anything like that. It’s not been a panicky reaction,” Dixon said.

“No doubt in some firms there have been very direct conversations with partners about ‘we no longer wish to contest the space that you’ve traditionally practised in, and so over time it would probably be useful for you to think about where else you and your team might want to practice',” Weber said. But other reductions in numbers have come from partners and lawyers recognising that their firms’ strategic direction doesn’t fit with the aspirations they have for their practice. Rather than their practice being an adjunct to a corporate practice, for example, many lawyers seek out a firm where they can practice in their own right.

“It’s not as though they’re being asked to leave, but they just look at where the firm has articulated its strategic direction and say ‘I don’t really think that fits for me and gives me the opportunity… so I will go and find a firm that actually values my construction and infrastructure or employment practice and where I feel as though I’m in the core of the business',” Weber said.

Although headcount reductions are aimed at better positioning firms for the future, it’s a

difficult process that needs to be carefully managed. “In many ways it’s easier to grow firms than to make them smaller because there’s more good news stories around growth than there are around contraction, so the challenges in any of these businesses is to bring people with you,” said Weber.

“It’s quite unsettling for people to have staff go, so it comes down to how it’s managed and communicated,” Dixon said.

THE HORIZON FOR AUSTRALIA’S LARGE FIRMS Within these discussions of headcount changes lies a bigger question: can the Australian legal market sustain the large firms like it used to?

“I think it can but possibly not as completely full service firms,” said Dixon. “I think people will have to find their place in the market and what we’re seeing with the bigger firms is they’re becoming very transactions-based firms or large litigation-based firms. Their costs structures won’t support the smaller matters, but nor is that where they want to invest. They’ve got a much clearer focus, as does probably every firm in the top 20, and that’s necessary going forward,” Dixon said.

In Weber’s view, smaller headcounts may be the future for many large Australian firms. “If you look at the size of Australian firms relative in their own market and then in comparison with the rest of the world, they were very big firms and I suppose that it was unsurprising that firms were never going to get much bigger… most are going to get smaller,” he predicted. AL

CHANGING HEADCOUNTS FIRM

PARTNERS AS AT 1 JULY 2013

PARTNERS AS AT 1 JULY 2014

% CHANGE*

LAWYERS (EXCL. PARTNERS) AS AT 1 JULY 2013

LAWYERS (EXCL. PARTNERS) AS AT 1 JULY 2014

% CHANGE*

ALL LAWYERS AS AT 1 JULY 2013

ALL LAWYERS AS AT 1 JULY 2014

% CHANGE*

Herbert Smith Freehills

180

179

-1%

835

774

-7%

1015

953

-6%

Clayton Utz

200

187

-7%

583

535

-8%

783

722

-8%

Ashurst

173

168

-3%

614

553

-10%

787

721

-8%

Maddocks

69

68

-1%

219

193

-11%

286

261

-9%

Allens

154

146

-5%

525

472

-10%

679

618

-9%

Henry Davis York

52

48

-8%

164

141

-14%

216

189

-13%

Piper Alderman

53

50

-6%

119

98

-18%

172

148

-14%

DLA Piper

109

94

-14%

308

261

-15%

417

355

-15%

M+K Lawyers

58

54

-7%

128

98

-23%

186

152

-18%

*rounded to nearest whole number

FEBRUARY 2015 | 15

PROFILE / ADRIAN GOSS

Wise counsel Bauer Media general counsel Adrian Goss talks to Kathryn Crossley about some of the changes and challenges faced by in-house lawyers Like for so many other lawyers working in-house, Adrian Goss’s legal career began in private practice.

After five years of working with firms in Melbourne and New York, predominantly on corporate and commercial work for media clients, 10 years ago Goss made the transition to in-house, and spent three years with television production company Beyond before joining Bauer Media.

It’s a well-worn career path that remains largely unchanged, and Goss believes the practice of recruiting in-house lawyers from firms is likely to continue. “You do need quite a big team, I think, to effectively mentor junior lawyers, unless you’re able to give up a lot of your time personally to do it. I know some GCs are, and they do a great job of bringing young lawyers through, but I think for most teams the way we work and the way we’re structured isn’t conducive to providing the sort of training for junior lawyers that a law firm can provide.”

When it comes to people, the real challenge for in-house teams is retaining senior lawyers.

Although teams are growing and increasingly taking on more experienced lawyers, Goss believes that keeping them has been a difficult task for many organisations.

“In-house teams, except for the very big ones, are a pretty steep pyramid structure … That presents a challenge in dealing with people who want to progress and should progress but there’s 16 | FEBRUARY 2015

no obvious path within the legal team for them to progress,” he says.

“There is a limit to the number of people that any one team is ever going to have. One of the ongoing appeals of law firms is that, as long as the revenue is there, they can always add another partner; a company doesn’t just add another GC.” In such circumstances, he observes that it is common for lawyers to transition into the business, particularly into operational roles, which allows companies to retain talent. However, Goss admits that some in-house lawyers will want to remain lawyers and would rather move to another legal role. Although lawyers typically move from private practice to in-house roles, in time there may be more recruitment in the opposite direction. “There will probably be more movement between private practice and in-house in both directions,” Goss says. “I think that will become more common.”

Goss has had the opportunity to observe many of these trends through his role as national president of the Australian Corporate Lawyers Association (ACLA). “It performs such a valuable role in providing a voice and thought leadership for the in-house profession and in creating a strong in-house community,” he says of ACLA, which recently entered an alliance with the Association of Corporate Counsel, an international organisation for in-house counsel.

AUSTRALASIANLAWYER.COM.AU

“The pressure to manage legal spend has pushed in-house teams and law firms to be more creative in how they partner”

Photography by: Thilo Pulch (www.pulchphotography.com)

FEBRUARY 2015 | 17

PROFILE / ADRIAN GOSS

Another way that Goss observes firms working more closely with clients is through secondments.

“I think secondments are very valuable to firms.

It’s all about building relationships, and there’s no better way to build a strong relationship than through a successful secondment. Even if the secondee is poached, the firm achieves that aim,” he says.

“The challenge for firms at the moment is that they are all running pretty lean and it’s difficult for them to give up talented younger lawyers for secondments because of their own resourcing needs,” he says. “I personally think firms should be trying to do as many secondments as they can to build up the relationship."

“One of the ongoing appeals of law firms is that, as long as the revenue is there, they can always add another partner; a company doesn’t just add another GC”

18 | FEBRUARY 2015

EXTERNAL ENGAGEMENT

IN-HOUSE CHALLENGES AND CHANGES

The size of Bauer’s legal team – three lawyers, including Goss – means that certain tasks are usually outsourced: general corporate and commercial work, such as joint ventures and licence arrangements, are handled internally, while trademark and pre-publication clearance work is done by external firms on a fixed-fee retainer basis.

Although in-house teams have typically had tighter budgets to contend with in recent years, in Goss’s view it’s simply a reflection of the broader environment the legal teams operate in.

“We’re all being pressured to do more with less, and legal budgets are being squeezed, but, having said that, I don’t think that’s any different from any other parts of the business,” he says. “The pressure to manage legal spend has pushed in-house teams and law firms to be more creative in how they partner, and so you are seeing more fixed-fee arrangements, for example,” he says.

Despite the rise of alternative models, Goss says some firms need to take more initiative when it comes to alternative billing.

“We shouldn’t have to push them; they should be offering different models for different types of work,” he says.

“I think most firms are still pretty attached to an hourly billing rate model, and that is appropriate for some work but not all work."

Of course, billing is only part of that equation.

In recent years he has observed firms and inhouse teams working more closely together, with in-house lawyers frequently briefing external advisers on their organisation’s needs and strategic direction.

When asked about the biggest pressures faced by in-house lawyers in 2015, doing more with less is one of the challenges Goss names. “But that’s the new normal and we’re not alone in that regard,” he hastens to add.

In his opinion, the bigger challenge for those working in-house is demonstrating value. “A lot of in-house teams put a lot of thought and effort into performance metrics, and I think for some teams that can be a really valuable way of demonstrating value, but for other teams – especially smaller teams – it has limited utility,” he says.

Some other teams take an approach of communicating wins, but while the approaches vary from team to team, Goss says he is not sure that anyone has quite figured out the right answer to the question of how to demonstrate a legal team’s value within an organisation.

Despite this challenge, it appears that in-house legal teams continue to hold a trusted place within their organisations. In recent years Goss has observed in-house lawyers taking on additional responsibilities in other operational areas, such as risk, company secretarial, governance and knowledge management. “I think that trend reflects the level of talent within the legal teams.

When you’re looking for a part of the business to take on additional responsibilities, legal is often the obvious choice,” he says.

The broadening role of in-house teams is one that Goss thinks will continue, but he believes that general counsel are up for the challenge. “I think most of us embrace the challenge. One of the reasons that we went in-house was that we like being engaged in the business.” AL

FEATURE / AGRIBUSINESS

20 | FEBRUARY 2015

AUSTRALASIANLAWYER.COM.AU

A good harvest

Free trade agreements and growing investment interest herald strong growth for Australia’s agribusiness sector

Summer may soon be coming to an end, but it seems that Spring has arrived early for agribusiness lawyers. Global food security issues, free trade agreements and slowing investor interest in mining and resources have local lawyers gearing up for what could be the next significant wave of foreign investment.

There have been growing levels of interest in Australian agribusiness, with enquiries and due diligence activities on the rise, much of it driven by foreign investors making their first foray into the Australian market and by existing players in the local market looking to expand. “We’ve had a pretty solid year, with a fair amount of transactional activity, although there has been an unusually high level of interest in buyers looking for specific assets in the latter part of the year, which augers well for 2015,” observes Allion Legal principal Jon Cane.

INTERNATIONAL INTEREST Investment interest from overseas remains one of the big stories in Australian agribusiness. One

of the key drivers is economic advancement in Asia, particularly China. “Literally hundreds of millions of people have moved from poverty into a higher socio-economic level and therefore eat more, and clothe themselves in better clothes,” says Cooper Grace Ward consultant David Grace of the opportunities for Australian food and fibre producers. Beef, wine and dairy are among the areas where consumption in Asia is increasing. “I think the dairy industry in New Zealand has done very well out of its arrangements with China and Australia has that same opportunity,” he says.

As a result of growing demand, Asian investors, including state-owned enterprises, are looking to acquire agricultural assets. “In some circumstances, an outright acquisition is proposed, whether it be the acquisition of a company, of business assets or of stand-alone assets such as real estate. In other instances, joint ventures are favoured (particularly in more complex transactions where the operational input of a joint venture partner is likely to be beneficial). Much of this activity seems to be following the shift in

FEBRUARY 2015 | 21

FEATURE / AGRIBUSINESS

focus from resource assets, with falling resource commodity prices,” observes Clayton Utz partner Michael Linehan.

This waning interest in resources and mining assets, coupled with the free trade agreements between Australia and China, Japan and South Korea, has already seen increased interest from overseas investors in Australian agribusiness assets. A number of multi-national agri corporations, including Saputo, Parmalat and Fonterra, have recently expanded their Australian presence with acquisitions.

“On the East Coast we have seen particular interest in dairy and meat this year. In Western Australia the focus has been on broad acre farming properties,” says Cane. Linehan has also observed increased transactional activity in food distribution and logistics, animal feeds and processing, and food production. Although Asian investment is most discussed, investment activity has also originated from Europe and the US.

“The consolidation of some of the resources and infrastructure will make agribusinesses more attractive for investment and also provide sufficient scale when seeking to export produce“

Jon Cane Allion Legal

22 | FEBRUARY 2015

“It’s been a year of ups and a year of downs but certainly those free trade agreements create significant opportunities,” says Grace. “Some people say that they didn’t get as far as they would like – I think the government recognised that that was so, but that it was better to have a free trade agreement in place that gets them some of the way there and then continue to negotiate for more and better arrangements as time goes by … and expand the ranges of products to which those free trade agreements can apply.”

Although foreign investment interest is strong, lawyers acknowledged that foreign ownership of agriculture assets is frequently a contentious topic, and expressed uncertainty as to how both public opinion and the Foreign Investment Review Board would respond to increased activity.

The federal government has introduced lower thresholds for foreign investment in rural land.

“In the FTAs between NZ, US, Japan and Korea, Australia has reserved the right to adopt or maintain any measure to allow the screening of proposals by foreign persons to invest A$15m or more in Australian agricultural land and A$53m or more in Australian agribusinesses. The same threshold applies in the signing of the ChAFTA MOU with Australia and China,” says Cane.

This move has concerned some, but in Grace’s view the lower threshold for Foreign Investment Review Board approval is unlikely to be an issue.

In circumstances where parties are trying to finalise a deal quickly, the approvals process could prove problematic, but he does not believe that requiring a review will negatively impact investment in the sector. “If you go back 30 years, the thresholds for the sale of agribusinesses or rural properties was low anyway. I can remember doing deals in the 70s and 80s where you had to go to the foreign investment review board – it’s just another step,” Grace says. “For better or for worse, the government wants to oversee what’s happening, so long as they do that and clear the transactions quickly and efficiently, I don’t think that’s a negative.”

With international investors taking a keen interest in Australian agribusiness, local players have been prompted to consider their own plans.

“This increased competition for assets has in turn caused some domestic and existing multinationals in the agri space in Australia to accelerate their own plans and commence transaction activity,” Linehan says.

Yet the anticipated work for Australian agribusiness lawyers is not limited to only domestic and inbound investment activity. Local agribusinesses are expected to look increasingly overseas for opportunities, predicts Cane: “Upon the signing and implementation of the terms of ChAFTA, Australian entities will try to enter into the Chinese market at the earliest opportunity and try to tap into distribution networks in China to increase sales.”

OPPORTUNITIES FOR AUSTRALIAN FIRMS The free trade agreements create significant opportunities for Australian companies, but they also generate new possibilities for Australian firms. “The opportunities that have been identified in the media releases from the government on the capacity to export services, particularly legal and accounting services, are

AUSTRALASIANLAWYER.COM.AU

AUSTRALIA’S AGRIFOOD EXPORTS IN 2012-13 (AU$) Unprocessed Wheat Cotton Wool and other animal hair Oil seeds and oil fruits Barley Vegetables

Fish and crustaceans Fruit and nuts Rice

Meat

$6.8bn

$7.6bn

$2.7bn

Beverages (alcoholic and non-alcoholic)

$2.1bn

$2.5bn

Sugars and sugar confectionary

$1.6bn

Animal feed

$2.3bn $1.3bn

Milk cream, whey and yoghurt

$1.2bn

Sauces, soups and seasonings Cheese and curd

$1.0bn

Cereal preparations

$0.9bn $0.8bn $0.4bn

Butter and margarine Chocolate and cocoa

$1.3bn $1.2bn $0.9bn $0.7bn $0.7bn $0.3bn $0.2bn

Advising Australia’s agribusiness sector for more than 30 years Cooper Grace Ward’s dedicated agribusiness team understands the unique needs of businesses in this sector and its supply chain, from the farm to production, marketing and sales.

We have acted for iconic Australian organisations in a broad range of industries, including cotton, sugar, horticulture, poultry, dairy and beef. Our clients benefit from more than 30 years’ experience across the full spectrum of commercial and property law concerning primary producers, processors, transporters, exporters and research and development.

David Grace Consultant T 61 7 3231 2421 E david.grace@cgw.com.au

T: 61 7 3231 2444

Laura Gahan Senior Associate T 61 7 3231 2903 E laura.gahan@cgw.com.au

Leanne O’Neill Senior Associate T 61 7 3231 2498 E belinda.winter@cgw.com.au

www.cgw.com.au

FEBRUARY 2015 | 23

Source: Australian Trade Commission

Live animals

Processed

FEATURE / AGRIBUSINESS

TOP EXPORT DESTINATIONS FOR AUSTRALIAN AGRIFOOD IN 2012-13 (AU$) $2.6bn United States of America

$0.6bn

$7.3bn

United Kingdom

China

$2.3bn Korea

$4.1bn Japan

$0.7bn Taiwan

$0.9bn Hong Kong

$1.0bn Malaysia Source: Australian Trade Commission

significant,” says Grace. “Those [free trade agreements] should be beneficial to law firms, not only directly through their own ability to provide services but indirectly through their clients taking advantage of the removal of the costs of getting goods into those countries.”

TIME TO CONSOLIDATE

Michael Linehan Clayton Utz

Despite the positive signs, the sector still faces a number of challenges in the M&A arena. Parts of the sector are quite fragmented, which creates problems in terms of being able to meet increasing demand, particularly from Asian markets, and attracting investors. Lawyers predict that consolidation will likely be a key trend in the sector for 2015. “We expect to see a lot of aggregation in the sector to see farmers and producers aggregate their interests and

“This increased competition for assets has in turn caused some domestic and existing multinationals in the agri space in Australia to accelerate their own plans and commence transaction activity" 24 | FEBRUARY 2015

$1.0bn Singapore

$2.6bn

$1.4bn

Indonesia

New Zealand

assets to achieve greater economies of scale. The consolidation of some of the resources and infrastructure will make agribusinesses more attractive for investment and also provide sufficient scale when seeking to export produce,” says Cane. “Generally foreign buyers, particularly Chinese, look for fairly sizeable assets rather than small transactions.”

DEALING WITH DROUGHT AND WATER ISSUES Drought is another challenge facing the agribusiness sector. “If you take the impact of drought on agribusiness, particularly in Queensland and New South Wales, it’s been a tough year,” says Grace. “In Queensland, we have had the worst drought in a hundred years – we’ve had more than 80% of the state in drought declared areas, and that has had obviously a serious negative economic impact.”

Beef producers, which were still trying to recover from issues around the live exports trade with Indonesia, were particularly affected, with those producers who could afford to keep cattle on farms in the drought were unable to feed them, resulting in significant sales and lower prices in early 2014. High volumes of cattle

AUSTRALASIANLAWYER.COM.AU

being sold early in the year meant a lack of cattle in the latter part of 2014, with a strong increase in prices. It was good news for the producers who were able to hold on, and bad news for those who had to sell early.

Crop producers likewise experienced reduced yields and revenues as a result of drought. The financial pressure created by drought led to debt restructuring being a major area of work for some firms in the last year.

In Grace’s view, political attention from state and federal governments on water issues in recent years has resulted in Australia having one of the most transparent systems in the world, making water infrastructure an attractive target for investment.

SUCCESSION ISSUES The other major trend in agribusiness is the challenges faced by the traditional farming model. The ageing population on farms and the lack of young people willing to stay on farms has created a significant number of succession issues.

“I think that the transition from family farms to corporate farms is inevitable because of the fact that there isn’t the intergenerational interest" In Queensland, Grace observes that coal seam gas operations took many income earners away from farms to work in construction roles. As construction phases down, that trend is now reversing and some are looking to return to farm work.

These pressures have created a high volume of work for firms in the restructuring of the arrangements for family farms, and Grace expects that this trend will ultimately lead to a shift in who typically runs farms. “I think that the transition from family farms to corporate farms is inevitable because of the fact that there isn’t the intergenerational interest,” he says. AL

David Grace Cooper Grace Ward

Boutique / Specialised / Astute

...and focussed on the agribusiness sector allionlegal.com

Allion Legal_HP-advert.indd 1

27/01/2015 2:50:26 | 25 FEBRUARY 2015PM

PROFILE / JOHN EDMOND

0 to 100 26 | FEBRUARY 2015

AUSTRALASIANLAWYER.COM.AU

Image by: Thilo Pulch (www.pulchphotography.com)

Clyde & Co Australia managing partner John Edmond shares the journey of bringing an international brand to the Australian legal market It has been a busy few years for Clyde & Co’s Australia practice. In 2012, the international firm made its Australian debut with a small team of lawyers working in offices in Sydney and Perth, predominantly on insurance litigation. Since that time it has added another two locations – Melbourne and Brisbane – and now boasts more than 100 staff.

As has been the firm’s strategy in other locations, the Australian practice began with a focus on an initial sector and has grown out from there. “It’s very much the same plan of steady, sustainable growth with known practice groups and sectors, which we build out,” says Australia managing partner John Edmond.

Despite the firm’s rapid growth in such a short period of time, he says that the firm doesn’t have a specific plan to achieve a certain size by a particular date: “We had a plan to be in the four cities that we’re in now, including our recent opening in Brisbane, but really nothing much beyond that.”

Edmond says the firm’s establishment in the Australian market was greatly assisted by the broader firm: “We are a truly integrated partner­ ship. We’ve got 300 partners around the world; we’re one profit pool, and that means that the level of support that we get from the broader network isn’t just lip service … that is something that I think is a key distinction from a lot of new players coming into the Australian market,” he says. “That’s made setting up a law firm a lot easier.”

firm’s approach to entering new markets.

Instead, the firm has grown by hiring teams of lawyers from other firms. “No one is under the Clyde & Co firm name by accident; everyone has chosen to be here, and I think that’s the most positive environment that you could possibly engender,” he says.

According to Edmond, who came across as part of a team from Allens, the approach offers con­ sider­able benefits: “If you think you’ve identified the right people, and they’re coming with their team and they’ve got an established client base, and you think the majority of that client base will come with them, then really the task is to put together two groups who are positive, enthusiastic and happy about what they’re doing and where they’re going – and I think that’s where you get the best benefits that are possibly available.”

Yet growing a firm team by team, rather with than individual hires, also brings with it the risk of tribalism. To guard against it, Edmond emphasises the need to get the due diligence right – “That will never be the absolute panacea, but it will get you a long way down the track,” he says – and spending time with lawyers once they have joined the firm.

“Our business model is very flat, so all of our lawyers could work with any of our partners at any time,” he says. “No lawyer is beholden to a particular partner, and we don’t have any silos within the operation, and that certainly mitigates against a view of tribalism.”

JOINING THE TEAM

With four Australian offices now under the firm’s belt, where to from here? According to Edmond, his focus will be on expanding each of the offices so that all of the firm’s Australian locations can service its practice group sectors: insurance litigation, commodities, transport, construction

“We don’t tend to take over a law firm and then keep the pieces we really want and let the others leave or die on the vine. That seems to us to be a really expensive, low morale, difficult way to move into new territory,” Edmond says of the

WHAT CLYDE & CO DID NEXT

FEBRUARY 2015 | 27

PROFILE / JOHN EDMOND

EDMOND ON THE BIGGEST CHALLENGES FACING AUSTRALIAN LAW FIRMS

“We don’t tend to take over a law firm and then keep the pieces we really want and let the others leave or die on the vine.

That seems to us to be a really expensive, low morale, difficult way to move into new territory”

28 | FEBRUARY 2015

Continuity “Perhaps 15 years ago, the partner, as he or she became older, would pass on the relationships and involve the junior partners coming through in the relationships, the growth and main­ tenance of that strong client bond with the firm. I think, sadly, we’re seeing less of that, and that’s because there’s such a focus on the metrics of that individual partner. Why would a 55-year-old partner be incentivised to pass on his or her relationships to the upcoming very clever, enthusiastic, affable 35-year-old partner, if the immediate effect of that was to have some unfavourable results on their own remuneration?

“Firms have moved away from traditional rigid, lockstep models, but I think they might have jumped too quickly the other way. Your firm should want to maintain long and sustainable bonds with clients, and it can only do that because of groups of people who work together.”

Increasingly sophisticated clients “One of the consequences of the over-serviced legal market and all these great lawyers coming through the system is that more and more people are going in-house ... you’ll be dealing with more and more clients who absolutely get what it is that you do and were probably doing it themselves a couple of years ago and want you to really add value, rather than just run a matter and give them a summary of what’s going on. The relationship is much more collaborative.”

Pricing pressures “One of the flipsides of procurement and centralised global panels is that lawyers face the constant battle of a price drive downwards. I think that’s a challenge for lawyers, and I think that’s a challenge for industries they represent as well. I’ve always been a little sceptical of being judged on price alone. I think the challenge the industry faces is an unfortunate one; the clients face it and the lawyers face it, but if the clients continue to drive prices down, then they really drive behaviours that we see elsewhere, which means that they end up paying full value anyway.”

Conflicts on the rise “Conflicts are increasing. The fact that there’s a more sophisticated client base means that there’s more awareness of conflicts and what it means. There is a move towards this whole idea that ‘you’re either with us or against us’, rather than ‘is there a specific conflict on that matter?’. I think it’s a challenge predominantly for the full service firms.”

and infrastructure, as well as workplace relations and WH&S. Clyde & Co’s Australian offices also will con­ tinue to work closely with the firm’s offices in the Asia-Pacific. In the last two and a half years, the firm has grown from 15 to 44 partners in the AsiaPacific, and Edmond expects the firm will see further growth there. “We’ve been successful in Asia, and we see our growth and success there as the tip of the iceberg for our plans in this region,”

Edmond says, hinting at the potential for further office openings in the region.

“I think that there is an increasing recognition by everybody about the importance that Australia has to play in the Asia-Pacific,” Edmond says, but hastens to add that a presence in Australia is only one part of a successful strategy for the region.

“If you go back 10 years, or maybe 15 years, there was a slightly naïve view that you could get some Australians to service Asia for you, and that

AUSTRALASIANLAWYER.COM.AU

just will not work. Having an Australia presence as a significant part of your Asia-Pacific strategy is a very good way to do it, but it is just one part of the Asia-Pacific,” he says. In Edmond’s view, while there are clear differences between the legal systems in different parts of Asia, the common law will have a key role to play: “Australian-trained commercial lawyers have got a great future across the Asia-Pacific,” he predicts.

Edmond also told Australasian Lawyer that a foray into New Zealand may also be on the cards.

“I certainly don’t discount New Zealand,” he says.

“We pitch for specific tasks for global clients, and we pitch for new tenders for global clients, and they consistently want to know about Australasian law. A frequent question we get is assuming Australasian law is identical to New Zealand.

Obviously the answer is no, and so we often partner up with someone and pitch because there are very few firms that genuinely offer both,” he explains. “We are actively looking at some poss­ ibilities there,” Edmond says, before quickly adding that the firm is not in talks with anyone at the moment. AL

Image by: Thilo Pulch (www.pulchphotography.com)

“We had a plan to be in the four cities that we’re in now… but really nothing much beyond that”

FEBRUARY 2015 | 29

SPECIAL REPORT / BRISBANE

Brisban city report 30 | FEBRUARY 2015

ne

AUSTRALASIANLAWYER.COM.AU

Queensland lawyers reflect on the gains of 2014 and share their predictions for the year ahead There is a growing sense of momentum in Queensland’s capital. Activity is on the rise in a large number of practice areas and lawyers report that their clients are in a mood to get on and do things.

The positive signs are easy to find. At Cooper Grace Ward, for example, the part of the firm that sets up companies, trusts and other structures for clients has just had a record year. According to managing partner Chris Ward, this is indicative of the current state of Queensland’s legal market: “They’re not setting them up for fun, they’re setting them up for a project,” he says. “What that is telling us is that there is a degree of movement out there among clients.”

FEBRUARY 2015 | 31

SPECIAL REPORT / BRISBANE

“Completing our Eastern Seaboard presence with a Brisbane office was part of our future growth plans across all our practice groups”

LIFE AFTER ENERGY AND RESOURCES While it had been the bread and butter of some Queensland firms in recent years, waning energy and resources work presents difficulty for many of the firms that enjoyed high work volumes in this area. As projects like Gladstone LNG transition from construction to operation, the challenge for those involved is to work out what to do next.

Other areas of construction, such as proposed government infrastructure projects, may prove to be the next area of opportunity. Projects such as the Toowoomba Second Range Crossing, the BaT (Bus and Train) project, and a new development at 1 William Street are on the cards. The second Toowoomba crossing project is valued at over $1.6bn, while the new government building at William Street will cost $653m. The Bus and Train project combines the Cross River Rail project with the $2.2bn Suburbs 2 City bus-only river crossing and tunnel connection through Brisbane CBD. According to lawyers, the lynchpin for these projects is the result of the state election, which will take place as this issue of Australasian Lawyer goes to print; if re-elected, the Newman government is expected to begin leasing state assets to raise capital to fund the projects, with likely flow-on work for firms.

In the meantime, Ward believes that firms that had focused on energy and resources will be working to enhance their capabilities and looking out for opportunities in growth areas.

Carter Newell senior partner Paul Hopkins

believes that activity will return to the sector. “[Lawyers working in this area] haven’t lost their skills. The industry is clearly in pause and it will come back. We’re very committed to our resources team which has had some good high quality gas sale work in the last few months, but it is one area that is patchy,” he says. “But most good firms that are focused on that industry realise that these times happen and you’ve just got to stay committed and be a true believer.”

From here, Hopkins anticipates work to arise from supporting the continuing development of upstream operations in the gas sector, as well as increasing exploration and development activity by independent petroleum companies. He also expects that shale and unconventional gas development will increasingly shift the spotlight away from coal seam gas.

“Our resources team expects the gas sector to continue to represent a significant flow of work as project development moves into an operational phase. We are cautiously optimistic that 2015 will also see an increasing volume of transactional and project development work in the mining sector,” Hopkins adds.

HOT PROPERTY Firms reported an increase in property activity during 2014 and expect that workflows will continue this year. Activity in this area has included both commercial and residential work, with the market for city apartments being particularly strong. “In the property space I think those who have been patient and willing to play a

22,000

4%

new jobs created in the past 12 months

Brisbane’s value to the Queensland economy

Average annual growth rate for Queensland’s economy in the past decade

$135bn

$217bn

6%

Value of Brisbane’s economy

32 | FEBRUARY 2015

47.1%

Predicted value of Brisbane’s economy by 2031

Expected economic growth for Queensland in 2015-16

Source: Brisbane City Council, ABS, Queensland Treasury and Trade

BRISBANE BY NUMBERS Matt Dudakov, Lander & Rogers

SPECIAL REPORT / BRISBANE

“The industry is clearly in pause and it will come back. We’re very committed to our resources team which has had some good high quality gas sale work in the last few months, but it is one area that is patchy… most good firms that are focused on that industry realise that these times happen and you’ve just got to stay committed and be a true believer”

Paul Hopkins, Carter Newell

long hand are seeing that now is the time to move.

There is pent up demand and that is now coming out,” says Ward. “Good, substantial property companies with quite large land banks are really hitting the market at a time when there’s a lot of confidence,” he says.

“We have a number of our corporate clients either further developing their premises, or looking for additional premises. Among our developer clients, there is sentiment that conditions are improving, and this will lead to more activity in terms of acquisitions of new development sites for their own purposes, and sales of fully developed commercial sites to investors,” predicts Hopkins.

INSURANCE Another key area for firms has been insurance.

The strong workflows have included CTP, workers compensation, public liability, property damage, life insurance, professional negligence and aviation matters.

“Insurance continues to see a large volume of claims under professional indemnity, D&O, management liability and EPL policies, and there continues to be a steady stream of claims against both the financial services industry and valuers,” says Hopkins.

As some businesses struggle in the economic climate and face criticisms from disappointed investors, creditors and employees, and ongoing 34 | FEBRUARY 2015

scrutiny from the regulators, a variety of claims continue to arise under D&O and management liability policies.

“The highest increase in professional liability claims has been against accountants, arising from complaints about due diligence, taxation advice and superannuation and ranging from civil proceedings for compensation to disciplinary matters,” Hopkins observes.

NEW IN TOWN For firms with offices in other capital cities, Brisbane has been the next logical step for those looking to expand their Australian coverage. “If you’ve got an office in Sydney and Melbourne it flows, and I think eventually you’ll hit Queensland,” says Ward.

This holds true for Lander & Rogers, which established an office in Brisbane last year. “For our firm, completing our Eastern Seaboard presence with a Brisbane office was part of our future growth plans across all our practice groups,” says partner Matt Dudakov. "A number of our clients, many of which have a national presence and/or legal service requirements in all states and territories, had also indicated that they were very keen to see us have a presence in Brisbane,” he says.

Of those recent entrants to the Queensland market, a number of firms have been pursuing insurance work. In Dudakov’s view, this is both a response to client demand, but also a testimony to the amount of insurance work available.

"Obviously the number of firms entering the Brisbane market creates challenges for existing firms here in terms of the spread of work,” says Dudakov, who emphasises the importance of differentiation for firms in the Queensland market. Lander & Rogers partner Andrew Forbes agrees: “A number of medium to large firms, like ours, which offer highly skilled services in defined areas are the new entrants which have done well in the Queensland market.”

Brisbane has welcomed a number of new legal brands in recent times, and Dudakov believes that more entrants may be on their way. "There's a great need for lawyers in Queensland, both front end and back end. So we absolutely expect that well-operated firms here will continue to grow, and that others will continue to look at entering the market," he adds.

Although much has been made of the impact of

SPECIAL REPORT / BRISBANE

“In the property space I think those who have been patient and willing to play a long hand are seeing that now is the time to move. There is pent up demand and that is now coming out”

Chris Ward, Cooper Grace Ward

36 | FEBRUARY 2015

new players on the local legal market, longestablished Brisbane legal brands believe that the effects have been overstated. “The Queensland legal market has always been competitive, the mergers and new entrants in the market are just a continuation of that competitive spirit,” says Hopkins. “Many of the new entrants have taken over or merged with long standing Brisbane firms, so while the landscape is changing with new brands emerging, it is still essentially the same people just operating under different banners.”

Ward agrees. “It hasn’t in many cases been much of an impact because it’s largely a firm that’s trading as Smith & Smith one week and they’re Brown & Brown the next week,” he says.

In Ward’s view, the biggest challenge for all Brisbane firms – both the new and established brands alike – is the competitive nature of the market. “We are a very well-serviced legal marketplace; there are a lot of good law firms in Queensland… the clients have plenty of choices,” he says. For any firm looking to succeed in the market, he believes the key is to find an answer to the question of why clients want to use your firm over the others, and to then focus on maintaining that.

GREAT EXPECTATIONS: OPTIMISM FOR 2015 In Ward’s experience, when there is a downturn, Brisbane is the last to feel the effects, and when there is an uplift, Brisbane is the last to notice the benefit. He believes that Brisbane is now in a period of uplift, and notes that the last six months have been particularly positive. The official outlook is a very strong one: Queensland’s midyear fiscal report puts the state’s growth in 2015/16 at around 6% – well ahead of any other state in Australia. “Things are picking up, there is a degree of confidence and that will continue for some time,” Ward says. AL

SPECIAL REPORT / RECRUITMENT 2015

In search of new recruits The legal market’s recovery has been accompanied by an upswing in recruitment activity.

As confidence builds and workflow picks up, the candidate is king once again. While 2015 may be a good year for lawyers to update their CVs and test the market, for firms it means greater competition for talent. Legal recruitment experts share their predictions for the year ahead

38 | FEBRUARY 2015

CORPORATE COMEBACK Having endured several patchy years, corporate workflows are returning and corporate lawyers are in demand once again. “Deals are happening, which is fantastic for the market,” says Signature Consulting managing director Steve Cole. “Whilst people were working at full capacity but comfortably a year ago, they’re now overrun and need to bolster the teams to help get the work done.”

Corporate, banking and finance, and infrastructure practice groups are all expected to be busy in the year ahead, and activity in property and employment is also predicted to continue. Sectors such as healthcare and IT will also remain active, and a number of niche areas such as strata law will continue to grow.

As corporate teams begin to hit their stride, recruiters predict that there will be an easing in litigation and insolvency work.

AUSTRALASIANLAWYER.COM.AU

PRIME CANDIDATES The welcome resurgence of banking and finance work has shone a spotlight on the talent shortage in the practice area. Scaling back of banking and finance practice groups following the GFC has now created a bottleneck, with firms facing tough competition to attract banking and finance lawyers with four to five years of experience. “There’s going to be a lot of demand and not too much supply,” predicts Jason Elias from Elias Recruitment.

Cole agrees. “High-quality senior associates will always be in demand, particularly if they have clients and

relationships to bring across with them,” he says. “The ‘doers’, for want of a better phrase – the guys who are actually churning out the work – they’re the difficult ones to sign up ... mid-level associate to senior associate; and I think the talent shortage in that experience level will continue.”

In contrast, Elias observes that the market will remain oversaturated with junior lawyers.

“There’s still an overabundance of junior lawyers being pumped out," he says, "so for lawyers under two years’ PAE, there aren’t many roles.”

“Whilst people were working at full capacity but comfortably a year ago, they’re now overrun and need to bolster the teams to help get the work done” Steve Cole, Signature Consulting FEBRUARY 2015 | 39

SPECIAL REPORT / RECRUITMENT 2015

TALENT SHORTAGES IN SYDNEY AND MELBOURNE With corporate and financial activity kicking into gear, Sydney and Melbourne will likely be the key cities for recruitment activity in 2015.

“Where the finance and corporate centres are will probably be the hotspots because that’s where deals and transactions and infrastructure and construction are happening,” observes Cole.

“There’s been an overreliance in the mining and resources sector – we’ve noticed a slight shift away from that – so I’d say the main cities, particularly Melbourne and Sydney, are going to be hotspots.”

Improving conditions for commercial centres overseas will exacerbate talent shortages in Australia, particularly at the mid-level associate to senior associate level, with the flow of Australian lawyers to law firms overseas regaining pace. “What we’re seeing is more lawyers being able to make those moves overseas because there’s more opportunity and greater interest. You’ve got a greater interest on the part of lawyers, and they’re now getting to secure jobs,” Mahlab NSW managing director Lisa Gazis observes.

Many senior associates with internationally transferable skill sets, such as banking and finance, who were already in demand locally, are being hired by London firms. “There’s definitely a confidence in going back overseas. It’s not at the level that it was eight years ago or nine years ago, but they’re starting to see that being an avenue for candidates where it wasn’t for so many years. I think that will definitely increase in the coming year," Cole says.

In Gazis' view, “What we’re finding is the international market is picking up, and because the international market has been picking up, it’s going to put pressure on Australian talent because you’ve got more lawyers looking to go overseas. The international market tends to pick up our corporate lawyers, or projects lawyers, and our finance lawyers, so the effect of that will be that Sydney and Melbourne, being the larger of the commercial centres, will have demand in those areas.”

Elias agrees, and flags the number of transfers between the Australian and London offices of global firms as an area to watch. Elias says Dubai is another good destination for Australian lawyers, but that Hong Kong and Singapore present greater hurdles than in the past. “Hong Kong is a lot harder now, unless you have Mandarin skills. A few years ago they were a lot more flexible; now, without those good language skills it’s a real struggle.

In Singapore they’re being a bit tighter on visas.”

BUSY BOUTIQUES

Mergers in the Australian market have brought about considerable partner reshuffling, and for recruiters this will likely spur on a busy year at the boutique level.

“A lot of the merger activity has meant that a partner who has a really good client in Australia has all of a sudden been told there’s a conflict issue with another office overseas, and, rather than stay in a firm and lose their client, has gone out on their own and created a small firm but with big clients,” Elias says.

Cole predicts that 2015 will bring a flurry of recruitment activity for these newly established boutique firms. “The boutiques that were set up six to nine months ago, even 12 months ago, are now probably getting enough business in where they will need to recruit ... They’ve gone out, they’ve taken the risk, they’ve got some clients, they’ve bedded down, and now they’ve realised that ‘actually, our clients are with us and they’re backing us to do well – we need people to help us do the work’.” Cole observes that these boutiques are beginning to go outside their own networks to find the people they need to do the work, and he expects this will continue in the year ahead.

“What we’re finding is the international market is picking up, and because the international market has been picking up, it’s going to put pressure on Australian talent because you’ve got more lawyers looking to go overseas” Lisa Gazis, Mahlab 40 | FEBRUARY 2015

AUSTRALASIANLAWYER.COM.AU

PAYDAY Is a pay rise on the horizon for lawyers? Most recruiters expect that while 2015 will bring increases for lawyers, most pay rises will not be significant ones.

“While salaries will increase, they’re likely to be conservative,” Gazis predicts. “The big increases of the past are not going to be given to everyone across the board anymore.

The environment has become a lot more merit-driven, and whilst there will be lawyers who will be finding that they are rewarded, we’re going to see increases in the form of bonuses. We will be seeing salary increases, but they will be a lot more merit-driven and a lot more conservative than they might have been in the past,” she says.

In Cole’s view, salary increases of 3–6%, depending upon the area of law, will probably be the average pay rise in 2015.

“That’s not to say that talented lawyers can’t earn good salaries, but it’s not going to be the sorts of numbers that we were talking about previously, and not everyone is necessarily going to be getting a salary review,” Gazis says.

“In order to do well or even be able to get a bonus now, you’re going to have to be able to

perform above expectations. If you’re meeting expectations now in your role, that will probably qualify you for a salary increase, but it might not be enough to get you into the bonus sphere,” she explains.

Elias says: “I’ve heard of people having to almost resign before they get pay rises. I think firms have got away with that for a little while, but I think there will probably be pressure upwards on salaries this year, which would be good and fair for everyone, because lawyers have taken a hit these last few years.”

The news is better for lawyers moving to new roles, however. “Firms are starting to get wise that they have to come up with attractive packages to get the best candidates in the market, and candidates are beginning to realise that they are king again, because we’re so candidate short,” says Cole, adding that sign-on fees are becoming more prevalent and some firms are introducing bonus structures to help attract candidates.

PARTNERS ON THE MOVE The last 12 months have seen a very high number of partners moving firms, often taking their teams with them. Cole expects this trend will increase in 2015.

“What partners are starting to realise is in terms of bureaucracy, in terms of work-life balance, in terms of client pressures on pricing, they can actually move to a smaller firm and tick the boxes that they want. The clients are still going to come across and they might be able to do the work a bit cheaper; they can still earn the money that they were or even more, and it’s less bureaucracy,” he says, predicting a year of increased partner movements.

“The legal industry has, for want of a better word, been suffocated by the need for

lawyers to work for a brand, and it was the name of the law firm that was key to everything,” he observes. From Cole’s point of view, the need to work for a global brand at the partner level is now softening, and partners with a strong reputation will be increasingly likely to consider opportunities at other firms.

As the talent shortage will be a key feature of the legal recruitment market, lateral hires of partners and their teams will likely be increasingly in vogue this year, Cole predicts.

“There’s a real candidate shortage, so if a firm can attract a partner and a known entity (ie a team), it takes the risk out of going and hiring people individually from firms,” he says.

“Whilst there’s potentially a big outlay initially, for the medium to long term it’s actually a lot less risky. These things can be quite hard to negotiate at the time, but it’s definitely a trend that we’ll see more of.” AL

“I’ve heard of people having to almost resign before they get pay rises.

I think firms have got away with that for a little while, but I think there will probably be pressure upwards on salaries this year” Jason Elias, Elias Recruiting

FEBRUARY 2015 | 41

FEATURE / POSTGRADUATE STUDY

Postgraduate

checklist Returning to study is a significant decision, and there’s more choice than ever before. Educators speak to Australasian Lawyer about what lawyers considering a postgraduate qualification should look for

42 | FEBRUARY 2015

AUSTRALASIANLAWYER.COM.AU

No matter the career stage, postgraduate study offers lawyers an avenue to deepen their expertise and advance their practice. As the objectives of each lawyer will vary, so too will their choice of course. Despite the varying reasons for undertaking a postgraduate qualification, there are a number of factors that all practitioners will need to take into account when selecting what and where to study.

about [their practice area]”, while a more general Masters program would help a new lawyer to enhance their undergraduate qualifications, he explains. Experienced practitioners may even use postgraduate study as a means of developing a new area of specialisation.

College of Law adjunct lecturer and barrister Dr William Higgs says the College’s Applied Law LLM is an ideal option for lawyers in the early

COURSE CONSIDERATIONS

“These courses provide a really valuable opportunity for students to broaden and enrich their network of peers in the profession in their particular area”

“It makes sense to start out by being really clear about what your objectives are and then to look for the program that will fulfil those objectives,” says Professor Caron Beaton-Wells, Associate Dean for the Melbourne Law Masters.

“The applicant needs to consider how that program will fit with their professional aspirations,” agrees Professor Brendan Edgeworth, director of postgraduate studies at the University of New South Wales. “Established lawyers need to choose a program that gives them a deeper insight, and updated information and knowledge

Caron Beaton-Wells, University of Melbourne

FEBRUARY 2015 | 43

FEATURE / POSTGRADUATE STUDY

“Established lawyers need to choose a program that gives them a deeper insight, and updated information and knowledge”

stages of their careers. The course is designed to prepare students for work as an associate or junior lawyer and help them to get ahead. Majors in commercial litigation, commercial transactions, family law, in-house practice, property law, and wills and estates are available, with an emphasis on practicality. For example, in the commercial transactions stream, Higgs teaches skills such as negotiating and drafting contracts and structuring transactions.

One of the key decisions to be made when choosing a postgraduate degree is whether to do a coursework or a research-based Masters.

According to the academics interviewed, a research Masters allows students to undertake in-depth study into a particular area, but typically does not lend itself as well to professional practice as coursework-based Masters programs. In Higgs’ view, a research Masters is usually a leadin to an academic career and a potentially a PhD: “For most students that do a PhD, the endgame for them is to go into academia. In my experience it’s very rare to find a PhD practising… you might find at the partner level that they would do a PhD to give them some credibility in their practice area and to cover issues that they’ve found in practice that aren’t quite well settled and they want to elaborate on those,” he says.

A number of institutions offer the ability to enrol in a single subject as a way of testing the water before committing to a full Masters degree.

Postgraduate law courses will typically count towards MCLE requirements, allowing practitioners to kill two birds with the one stone.

FINDING THE TIME

Brendan Edgeworth, University of New South Wales

44 | FEBRUARY 2015

Between a busy practice and other commitments, it can be difficult to find the time to study. The academics interviewed by Australasian Lawyer reported that the vast majority of local students study part-time, undertaking one or two subjects per semester. At that rate, it will usually take parttime students two to four years to complete a Master of Laws degree (usually one year fulltime). Beaton-Wells believes that it is not realistic to expect that a postgraduate student who is working full-time will also be able to study fulltime. “The more realistic model, and that’s not to understate its demands, is a part-time model for domestic practitioners,” she says.

On the other hand, Higgs believes that it is possible for lawyers to work and study on a full-

time bases. “Most of the students in my subjects are doing full-time study and full-time work and I guess that’s just the nature of the flexible offering is that it’s all online: it’s one-hour a week tutorial plus the readings which you do in your own time and then one day [of workshops] during the semester for each subject,” he says.

To assist lawyers in the difficult task of juggling work and academia, most law faculties offer a range of study modes, including online course options, night classes and intensive classes that run over three to five full days, often on weekends, with students spending most of the semester completing readings and assignments in their own time. “You need to choose a program that offers you maximum flexibility,” advises Edgeworth.

At UNSW and the University of Melbourne, the majority of postgraduate subjects are offered on an intensive basis, which can more easily accommodate interstate students and visiting academics. Beaton-Wells says that Melbourne Law School is also exploring options for fully online classes. At the College of Law, subjects are taught online with weekly tutorials, plus one full day workshop per course.

Lawyers considering their course options should keep in mind that while most universities will offer a range of study modes, the delivery of individual subjects will vary.

CALCULATING THE COSTS An LLM course is a significant investment. For example, the cost of a coursework Master of Laws at the University of New South Wales in 2015 is $30,480 for local students; at the University of Melbourne the fees are $36,416; and a College of Law LLM is $18,760. In most cases, FEE-HELP loans are available for local postgraduate coursework students.

“One of the things students need to factor in is that course fees will generally rise in line with inflation so that the ultimate cost, particularly if it’s spread out for a period of time, will cost a little more than the current advertised cost for the year for the entire program,” Edgeworth advises.

Students also need to keep in mind that these fees cover tuition and access to university resources and services, such as library databases.

Although course fees do not cover the cost of textbooks, Edgeworth emphasises that many postgraduate law subjects do not have prescribed

AUSTRALASIANLAWYER.COM.AU

texts, and instead use online materials and resources that can be accessed for free: “The cost of buying books and so on has substantially reduced over the years.”

Academics recommended that prospective students look into the postgraduate scholarships on offer at their university of choice.

POSTGRAD LAW: A SNAPSHOT 14,238 postgraduate law students in Australia

Where postgraduates work

32%

For some, choosing a postgraduate qualification in law involves more than just questions of cost, course selection and figuring out how to balance study with work and other commitments. Picking the right degree and institution can also open up opportunities for lawyers to learn from international experts, or to put their studies into a more practical context.

“If you are taking a particular program it’s important to see that the academics involved are leading practitioners in the field,” Edgeworth recommends. For example, UNSW and Melbourne Law School offer a number of postgraduate subjects that are taught by visiting academics or

$80,000

$98,000

21% Private sector

Median salary of LLM coursework graduates

Median salary of LLM research/PhD graduates

37%

85.1%

81.1%

8%

Private practice

Overseas LLM coursework graduates in fulltime employment

LLM research/PhD graduates in full-time employment

2% Other

Melbourne Law School

Master Class MELBOURNE LAW MASTERS A CLASS ABOVE The Melbourne Law Masters is a world class program that deepens legal knowledge, sharpens practical insights and offers international perspectives in specialised legal fields.

World Class Taught by more than 200 leading experts, the program offers an extraordinary range of subjects at the cutting edge of law and legal practice. Melbourne Law School is ranked eighth in the 2014 QS World University rankings by subject.

APPLY NOW www.law.unimelb.edu.au/masters

AUSTRALIA’S NUMBER 1 LAW SCHOOL FEBRUARY 2015 | 45

Sources: Good Universities Guide 2015; Graduate Careers Australia

Public sector

OPPORTUNITIES FOR STUDENTS

FEATURE / POSTGRADUATE STUDY

other experts from overseas. In 2015, Australia’s first federal Human Rights Commissioner, Professor Brian Burdekin AO, will be among the visiting lecturers at UNSW, while the University of Melbourne will be hosting experts from Harvard, Oxford, and senior members of the US and EU judiciaries. Universities release information about subject offerings and visiting academics well in advance, allowing lawyers to time their studies so that they can learn from these visiting experts.

Outside of the classroom, some law faculties also offer internships for postgraduate students.

For example, the University of New South Wales offers students the chance to develop their practical skills through internships with organisations like the Public Interest Advocacy Centre, the Gilbert + Tobin Centre of Public Law, and the Australian Human Rights Centre. Local students can also participate in international internships.

For those seeking a more international flavour

46 | FEBRUARY 2015

to their studies, some Masters subjects are even taught overseas. One of the most popular courses at UNSW is a subject that takes students to New York for two weeks at Columbia Law School’s Human Rights Institute. Other UNSW subjects include South Pacific Law (taught at The University of the South Pacific in Vanuatu) and Chinese Law (taught at Shanghai Jiaotong University).

POSTGRADUATE NETWORKING An often overlooked benefit of postgraduate study is the valuable opportunity it affords students to network with other lawyers practising in the same area. “One thing I think students should be very conscious of in choosing a faculty is the quality of the peers that they are going to mix with in the course, because these courses provide a really valuable opportunity for students to broaden and enrich their network of peers in the profession in their particular area,” says BeatonWells. AL

AUSTRALASIANLAWYER.COM.AU

5 minutes with John McGill (JD, MA, PhD), manager of Teaching and Learning, The College of Law Applied Law Programs TELL US A LITTLE ABOUT YOUR BACKGROUND I’ve always had a passion for helping others to achieve the best for themselves. When I finished my law degree, I began working as a learning strategist for law students with disabilities. I then moved into the corporate world as a manager of training for a fledging dot-com company in San Francisco. I was then recruited to join a vocational/ business college as the Dean of Student Success and Retention, where I focused on providing academic support and counselling to drive academic achievement. Focusing on my own development, I moved to Sydney to pursue a Masters and then a Doctorate at the University of Sydney Business School with a concentration in Organisational Coaching. After I finished my PhD, I worked in the corporate world as a learning and development specialist, executive coach and business development consultant to help individuals and businesses experience rapid growth.

WHAT IS YOUR CURRENT ROLE AT THE COLLEGE OF LAW? I joined the College of Law in November 2014 as the manager of Teaching and Learning, which allows me to use my experiences in law, academia and the business world to develop a world-class teaching staff dedicated to providing the highest level of service to students.

WHAT TRENDS DO YOU SEE IN LEGAL EDUCATION? The biggest trend that I’m focused on is action learning that delivers useful, practical and efficient skills to our lawyers. I want our students to feel competent and confident in their practice of law and to continually grow their skills. To achieve

this, our students need hands-on learning experiences that are linked to the best evidencebased research around adult learners. We are excited that in 2015 we will be launching a new learning management system that significantly enhances how our students learn and interact with the course materials and the lecturers.

WHAT ADVICE WOULD YOU GIVE TO RECENT GRADUATES LOOKING TO START THEIR CAREER? One piece of advice is to always be curious. Be open to continually learning and exploring new ideas, new places to live, new types of work and anything outside your comfort zone. Challenge yourself to never stop growing or exploring. Meet new people, network like crazy through sites like LinkedIn, but not expressly because you are looking for work, but because you want to find out more about the work other people do and the companies they work for. Put your energy to listening to others, more than talking about yourself. Ask people for their thoughts, advice and feedback. Take what works for you and discard the rest.

WHAT ARE YOUR LONG-TERM CAREER GOALS? I want to continually influence how students learn and how the student experience creates better skilled lawyers who are ethically-responsible to their clients. I want to meet all the challenges of my role and look to see how I can push myself to give more service and more support to students, lecturers and the College as a whole. AL

FEBRUARY 2015 | 47

PROFILE / DAVID HOLME

Land of opportunity Allens partner David Holme shares insights from his seven years as a foreign legal advisor in Jakarta “One of the things that attracted me to working in Indonesia was the dynamic and developing nature of the legal market,” says Allens partner David Holme.

Holme went to Jakarta in 2007 after two years in Singapore and has been there ever since.

“While I was in Singapore I was doing an increasing amount of Indonesian work to the point where I was largely focused on Indonesia… an opportunity came up to move down here and I jumped at it,” he recalls.

Working as a foreign legal advisor with Allens affiliate firm Widyawan & Partners, Holme describes his role as “a bridge between foreign clients working in a common law system, and Indonesian lawyers who have a civil law training.

I work with our lawyers here to try and help our clients understand the legal environment here as it relates to their transactions”.

For energy and resources lawyers, Indonesia is the place to be, Holme says. He and his colleagues in Jakarta have worked on some major energy projects, including the Inpex Masela floating LNG project, Pertamina’s refinery enhancement program, and supporting ExxonMobil in the Sheffield Oil joint venture with Pertamina.

Although his work in Indonesia is focused on energy, resources and infrastructure matters, Holme is a corporate and M&A lawyer, so he also 48 | FEBRUARY 2015

undertakes work in other sectors such as financial services, banking and insurance. In the financial services space, the firm has acted on SMBC’s acquisition of an interest in BTPN, one of Indonesia’s bigger private banks, which was the first deal to be approved under the nation’s new regulatory regime for banking acquisitions.

ON THE GROUND Since he arrived in Indonesia, Holme has seen a number of new entrants to the local market and watched firms’ emphasis shift from a fly-in-flyout model to something more permanent. “There are a number of new entrants that have established relationships with existing Indonesian firms and even some who’ve helped sponsor or help set up new Indonesian firms that they cooperate with, particularly amongst the Magic Circle firms and even some of the big US firms,” he says.

“Where previously firms thought it was possible just to do it from offshore and fly-in-flyout and work with a range of Indonesian firms, I think increasingly people are looking at providing really integrated service across the region and that includes people on the ground in Indonesia.”

From Holme’s perspective, it has become increasingly difficult for firms to say that they understand the Indonesian market when they are purely based offshore. However, he says

AUSTRALASIANLAWYER.COM.AU

FEBRUARY 2015 | 49

PROFILE / DAVID HOLME

succeeding in Indonesia does not simply come down to a local presence. “I think equally you need to be able to leverage the offshore resources and the specialist experience because the development of the legal market in Indonesia is such that there’s not yet specialist expertise in a number of areas,” Holme says.

“You need to be able to leverage that expertise that you have in the network offshore to bring the two together: the local knowledge and the local connections and the specialist expertise. Then you do need to have people offshore that have an eye to Indonesia, that have a focus and see it as part of their practice, but part of a broader practice because this market doesn’t demand full-time specialists in certain areas.”

“There’s always a bit of a misconception that Asia is a homogenous region… and that Asia has a unified set of commercial and cultural values" OPPORTUNITIES AND TRENDS According to Holme, Indonesia’s dynamic market presents a range of opportunities to foreign firms and investors.

In the energy and resources space, he believes that the focus in the market will be around energy security. Indonesia was formerly a member of OPEC but is now a net oil importer and the government is focused on enhancing domestic security, from an oil and gas and a power perspective. As a result, Holme believes there is

50 | FEBRUARY 2015

likely to be further implementation of the power enhancement programs that Indonesia has been undertaking in the last eight years or so. For energy and resources companies that already have operations in Indonesia, Holme predicts that they will be increasingly expected to support in-country processing and in-country use of domestic resources like coal.

New infrastructure projects, such as refinery enhancement programs, new toll roads and new ports, are also a focus. One of the new government’s key policies is the development of Indonesia as a great maritime nation, and ports will likely be a focus in the coming years, Holme predicts.

In the financial services space, consolidation is likely to be a dominant market trend. “I think the government is pushing banks and insurance companies to try and consolidate, which means there will be mergers and acquisitions, and also an increased focus around governance and prudential requirements, which will mean increased regulation – always good for lawyers.”

More broadly, Indonesia’s rapidly growing middle class presents a range of opportunities for investors, Holme says. “As happened with China and some other jurisdictions in recent times, Indonesia is a large population and in the midst of a middle-class expansion, which does necessarily present opportunities in sectors like consumer goods, financial services in banking and insurance… There are good opportunities in sectors like pharmaceuticals and telecommunications as part of the middle class boom.”

DOING BUSINESS IN INDONESIA While the nation presents a number of opportunities, corruption and business ethics

AUSTRALASIANLAWYER.COM.AU

“Where previously firms thought it was possible just to do it from offshore and fly-in-fly-out and work with a range of Indonesian firms, I think increasingly people are looking at providing really integrated service across the region and that includes people on the ground in Indonesia” remain a key area of concern for foreign investors. “The anti-corruption watchdog in Indonesia is a very strong body and a great force in the community and has been doing some great work in the last few years, but it has got to the point where corruption had been quite endemic,” Holme observes. “It is still a significant fight to get to the position where there’s a level playing field and foreigners are comfortable they’re working within a level playing field as they would in some of the developed markets they operate in.”

Other investor concerns relate to the quality and reliability of the Indonesian justice system; courts are often viewed as not very reliable or useful for foreign investors, particularly in terms of their capacity to handle complex disputes, as well as concerns around corruption amongst the judiciary and enforcement agencies.

Although Indonesia is generally open to international investment, Holme explains that some lines of investment are totally closed to foreign investors, or the proportion of foreign ownership is limited. Likewise, organisations with approval to invest in a particular line of business in Indonesia must engage in that business, rather than setting up a company and

having a broad line of business. “By extension, Indonesia doesn’t really recognise the concept of shell companies or the like, because you’re given an approval to implement a particular line of business, and the expectation is that you will do so,” he explains.

According to Holme, the biggest misconception of organisations hoping to work in Indonesia is that the country is like other parts of Asia.

“There’s always a bit of a misconception that Asia is a homogenous region … and that Asia has a unified set of commercial and cultural values,” he says. “The countries in Asia are in many respects as different between each other as Australia is different from any one of them and so the assumption that you know how to do business in China therefore you have an inroad into doing business in Indonesia I think is an inherent misconception. They’re very different,” he adds.

“That’s one of the skills you bring as a foreign legal counsel: to know where somebody is bringing a misconception because of their experience in their home country but they’re missing something that’s critically different from the way that things work in their home jurisdiction.” AL

David Holme Allens

FEBRUARY 2015 | 51

PROFILE / JODIE FOX

If the

shoe

fits Shoes of Prey’s Jodie Fox speaks to Australasian Lawyer about her journey from lawyer to online entrepreneur

Jodie Fox Shoes of Prey

52 | FEBRUARY 2015

For Jodie Fox, Shoes of Prey was the result of several passions coming together. Fox, formerly a banking and finance lawyer with Blake Dawson Waldron (now Ashurst), is the co-founder and chief creative officer of Shoes of Prey – a website that allows users to design and then purchase custom shoes.

Fox started at Blake Dawson Waldron as a university student, working in the firm’s mailroom, and later as a filing clerk and then paralegal. On graduation, Fox joined the banking and finance team, and later moved to Sydney to work with the securitisation team.

Even as a lawyer, Fox says she found herself attracted to the idea of running her own business.

“I remember feeling like everyone that I was doing

the work for in that advisory sense was doing all the exciting stuff, and I wanted to have a go at being that person,” Fox recalls. Instead of being the person putting together the documentation, Fox was interested in the opportunity to drive a project and make decisions, and believes it’s a drawcard for many other lawyers who establish their own businesses.

Although she found her work in the law interesting, Fox recalls feeling drawn to more creative roles. After four years with the firm, she left for a role in advertising. “One partner said to me when I resigned, ‘Of course you’re going into something more creative; look at your shoes, look at your glasses!’, and that was before we turned our minds to starting either of the businesses, so

AUSTRALASIANLAWYER.COM.AU

it was always there.”

“For me it was never about the intensity of the work or the money,” she says of her decision to leave the law. “It was always about just doing something that would make me happy,” she says.

“We believe here at Shoes of Prey that your work should be life-enhancing.”

“For me it was never about the intensity of the work or the money… it was always about just doing something that would make me happy”

BEST FOOT FORWARD

Fashion Weeks in collaboration with designers like Carla Zampatti and Romance Was Born. The Shoes of Prey team also launched a follow-up venture, The Sneaking Duck, in 2011, which specialises in prescription glasses and sunglasses.

Despite all of these milestones, for Fox, seeing the concept thrive is its own reward. “Every morning when I push the door open into the office is exciting. It’s a really great, tangible moment to be thankful for.”

“I was solving a problem of my own,” Fox says of the genesis for Shoes of Prey. “I'd always liked shoes, but I never loved them because I couldn't find exactly what I was looking for. Either it wasn't quite the right colour, there was an embellishment I didn't like, not quite the right heel height. When I was travelling, in the same way that you find someone who will make a custom suit for you, I found someone with whom I could commission shoe designs. My shoe collection became really exciting, and my girlfriends asked me where I was getting my footwear. When I explained, they asked me to create shoes for them too,” she recalls.

Meanwhile, Fox’s Shoes of Prey co-founders, Mike Knapp and Michael Fox, who had also begun their careers as lawyers, were by that stage working at Google – Knapp in software engineering and Michael Fox in advertising sales – and were becoming excited about the opportunities in online sales. The trio came together in 2009 and Shoes of Prey was born.

The concept clearly struck a chord: the business broke even after two months and reached multimillion dollar revenue in less than two years. In four years, Shoes of Prey has become a global, multi-channel retail brand, with English, French, German, Spanish and Japanese language sites to serve a growing global customer base. Shoes of Prey now has two bricks-and-mortar stores in Australia, one in the United States, and another five US locations to open shortly.

The venture has also led to other opportunities, such as showing at Australian and New York

AUSTRALIA’S START-UP SCENE Since Shoes of Prey began life as three people in a lounge room, Fox has watched Australia’s start-up scene evolve. “It’s a really exciting time to be in start-ups in Australia. When we started Shoes of Prey there wasn’t really much of an eco-system but there definitely is now,” she observes.

While the local start-up scene is on track, Fox believes that more needs to be done to support the community from end to end: “There is a little bit of a problem where there’s really good support for early-stage start-ups and then there’s a little bit of a gap in that middle growth area for start-ups, and then when you get to the stage of being a big company the support comes out again.”

Looking to the future, Fox says she couldn’t be more excited about the Shoes of Prey team and the direction that the venture is headed in. “It’s a wonderful time and it’s sort of the moment where all of the strings of the business have pulled together in a really focused way… it feels like this year is the year when we’re really going to hit pace.” AL

SHOES OF PREY, 2009-NOW

5 million +

website visitors annually

60 million minutes

shoppers have spent more than 60 million minutes designing shoes on the site

4 offices globally

3 stores

in Australia and the United States

5 stores

opening in the United States soon

FEBRUARY 2015 | 53

BUSINESS STRATEGY / WELLBEING

Looking out for our mates: 6 signs someone is struggling and what to do about it

Look around you; are the people you work with happy and have a sense of wellbeing, or do they appear to be struggling? Karen Gately urges everyone to look out for your mates and help reverse the alarming mental health statistics

54 | FEBRUARY 2015

AUSTRALASIANLAWYER.COM.AU

Give some thought to the people you spend time with every day. Reflect on people at home, people you work with, service providers and any other person you regularly interact with. Reflect on their happiness and mental wellbeing; how sure are you that you know how they are? How well do you observe these people and see when they are struggling? We all have a role to play in ensuring the members of our community battling mental illness get the care they need, and it starts with seeing the issue.

According to the Australian Bureau of Statistics (ABS), depression and anxiety affect one in seven and one in four people respectively at some point in their lives. However, a staggering 65% of people with mental illness do not get the help they need.

Every day at least six Australians commit suicide; a further 30 attempt to take their own life. According to Beyond Blue, at any one time approximately 20% of working Australians are mentally unwell.

Changing these numbers will mean each of us doing our part. We all need to take responsibility for looking out for one another and helping those in need. As employers we have a critical role to play in creating workplace environments that are healthy and supportive. It is essential that people are encouraged and expected to behave with respect and compassion. Every person irrespective of their role should be expected to take responsibility for having a positive impact on the wellbeing of the people they work with.

In Australia every employer has a legal obligation to provide a work environment free of risk to health and safety. This obligation extends to the mental wellbeing of people. In larger organisations, HR directors and teams play an essential role in ensuring people understand how

the workplace can impact the mental health of the team, how an individual’s mental health can impact on the workplace and what can be done to promote awareness, respond to issues and provide support.

When consideration is given to the very real and detrimental impact of mental illness on the productivity and performance of a team, the commercial justification for making it a priority becomes clear. There is no doubt as to the extent to which people can focus their efforts, collaborate effectively, invest energy and make good decisions when mental health is optimal. Diminished work performance, morale and engagement, high rates of absenteeism, high staff turnover, accidents and workers’ compensation claims are costly consequences of mental illness for many businesses.

6 SIGNS OF MENTAL ILLNESS

1

Extended period of time feeling ‘down’

Feeling depressed most of the time for anything more than a couple of weeks is a clear sign something is wrong. Constantly feeling sad, down or miserable isn’t normal and an obvious indicator that the person may need help. Depression is often also evident when people regularly feel overwhelmed, guilty, disappointed, irritable and frustrated.

2

Lost interest and resignation

Keep an eye on the person who no longer wants to do the things you know they love.

Losing interest in playing cricket, for example, may not simply be a case of moving on to new interests. Observe when someone has disengaged from their interests and resigned him or herself to living in a state of unhappiness. When people are depressed they are more likely to put off

PROPORTION OF PEOPLE AGED 16-85 WITH A MENTAL DISORDER (A) - 2007 % 50

(a) Selected mood, anxiety and substance use disorders

40 30 20 10 0

At any point in their lives

In the 12 months prior to the survey Source: National Survey of Mental Health and Wellbeing: Summary Results, 2007 (ABS cat. no. 4326.0)

FEBRUARY 2015 | 55

BUSINESS STRATEGY / WELLBEING

Every person irrespective of their role should be expected to take responsibility for having a positive impact on the wellbeing of the people they work with

Educate

Withdrawing from close family, friends and colleagues is another sign someone is struggling.

For example, a colleague who in the past was keen to socialise suddenly having no interest in interacting with other people may well need support. While of course this example on its own isn’t enough to give you full insight into their mental wellbeing, it is all the insight you need to know it’s time to ask if they are okay.

4

2

3

Becoming withdrawn

Lost productivity

Take notice when someone who is typically productive starts to regularly miss deadlines and appear disorganised. Observe when people are unable to concentrate or become unusually indecisive. Being tired all the time may be another sign someone is struggling.

5

Lost confidence and self respect

The way people talk about themselves can be revealing of the state of their mental health. Look out for people who often say things like ‘I’m a failure’ or ‘I’m worthless’. Constantly hearing someone say ‘I’m sorry, it’s my fault’, particularly when they are not at all or only partially responsible, is a cause for concern. People who are struggling often express their unhappiness by saying things like ‘nothing good ever happens to me’ or ‘I don’t see the point in trying’.

6

Physical symptoms

Our physical health is unquestionably impacted by mental wellbeing. Feelings of stress, anxiety or depression have the potential to adversely impact our bodies. Headaches, sleep problems, loss or change of appetite and even significant weight loss or gains are telling indicators of someone who is struggling with depression.

TAKING ACTION

Leaders play a particularly important role in driving commitment to policies and practices, 56 | FEBRUARY 2015

1

A lot of people are relatively uneducated about both the signs of mental illness and what to do when they become aware of it. Ensuring people understand how to recognise when they or a work colleague may be experiencing mental illness is an important way of tackling the issue. Just as important is overcoming an all too common stigma associated with mental illness. It’s a big issue that stands in the way of many people getting the help they need. Employers can play a role to shift the underlying attitudes that drive this stigma by educating their managers and team about the facts.

work tasks, postpone appointments and give up easily.

Karen Gately is a leadership and people management specialist and a founder of Ryan Gately. Karen works with leaders and HR teams to drive business results through the talent and energy of people. She is the author of The People Manager’s Toolkit: A Practical Guide to Getting the Best from People and The Corporate Dojo: Driving Extraordinary Results Through Spirited People. For more information visit www.karengately.com.au or contact info@ ryangately.com.au

which promote mental health and ensure people are appropriately looked after. It is essential that HR teams work in partnership with leaders at every level of an organisation’s structure to ensure a consistent approach is adopted. Driving education initiatives, influencing a healthy workplace culture and providing support services are all essential roles HR must play.

Culture

Creating a respectful and compassionate workplace culture that inspires people to look after themselves and one another is among the most important ways an employer influences the mental health of their team. Leading by example and holding people accountable for behaving respectfully are essential. The expectations a leader sets, coaching they provide and consequences they apply for the way people choose to behave has a profound impact on the workplace environment created.

3

Support

Talk about the issue. The more hidden mental illness remains, the more people will continue to believe that it is shameful and needs to be concealed. No matter the nature of our relationship with someone, we should never hesitate to ask how they are. Simply asking ‘are you OK?’ tells someone you care and invites him or her to talk to you. While of course it matters that we maintain appropriate professional boundaries in our relationships, acting with compassion when we see anyone struggling is simply the right thing to do. It’s not our role to diagnose or provide counselling but it is our role to assist the people we work with to get the help they need. AL

proudly brought to you by Key Media Print media

Digital media

Events TRA AUS

LIAN

AUSTRALIAN MORTGAGE AWARDS

15

Key Media Accolades

TABBIES

APEX

MAGGIES

EXCELLENCE AWARDS

BELL AWARDS

2012, 2013, 2014

2014

2010, 2012

2011, 2012

2005, 2006, 2007

To find out more about Key Media’s domestic or international products, please visit keymedia.com.au or call us to find out more (02) 8437 4700

AUSTRALASIANLAWYER.COM.AU

NOVEMBER 2014 | 1