Interview with Oleg Nalivaiko, lawyer, director of Law Company “Strategist”

21Companion magazine continues to introduce the outstanding personalities of the Ukrainian establishment. This time, I talked to Oleg Nalyvayko, the owner of Strateg Law Firm. Though it took us several attempts to schedule the interview (Oleg’s tight schedule allowed us to have a talk in the car, in between court hearings and business meetings), the conversation turned to be very informative.

Tell us about Your main areas of business? What kind of services of Your company are the most popular today?

Our key areas are administrative, commercial, family and inheritance law. I in principle don’t do criminal cases and everything connected with criminal offenses. Much of my attention is devoted to international contacts. I am consistently working on expanding partnerships with European countries and I have partners in the United Arab Emirates and Hong Kong. In this regard, a lot of time is also devoted to membership in chambers of commerce. We are a member of American, Ukrainian and Polish Chambers of Commerce, and we are the only law firm in Ukraine with the status of an official partner of the Czech Chamber of Commerce.

What is Your mission?

To protect decent people and provide them with the peace of mind in all matters. We want to make sure that the businesses of our clients are protected and our customers feel comfortable. I am very pleased to have received a patent on the copyright protection of customer legal service packages for individuals in the USA. There are three types of packages: Standard, Premium and VIP. The right to use the above mentioned packages is not limited in time. Depending on the customer’s choice of package, they can save up to 30-35%. This is one of the features that distinguishes our company from a large cohort of law firms and makes our product unique and niche. Over time, I have noticed that this product is in demand. Our packages are used by three Forbes list clients and it signifies the usability of this instrument. Strateg Law Firm, in its turn, guarantees that a client will receive the services they paid for as soon as such necessity arises. We are the company of principle and we do not consider the possibility of conducting proceedings against those companies that used to be the clients of Strateg Law Firm.

Does Your company have a slogan? That is to say, the principle which You follow in Your legal activity?

“Professional protection of Your interests”.

I devote a lot of time to professional development of my lawyers and advocates. They annually participate in 10 professional seminars. Thus we are able to track all the innovations, and that’s very important. Besides, I have initiated the provision of free consultancy which is delivered with the same high level of quality as if they were paid up. That is some kind of a social component of the company. We provide free and termless assistance to No. 6 Board School for children with impaired hearing, No. 47 A. S. Makarenko Public School and Podil Public Organisation for the needy. To increase the legal literacy of society, I have initiated the development of a mobile application that can be downloaded from Playmarket and Appstore. In addition, the application allows you not only to get the legal advice, but opens the access to approximately 20 drafts of most common agreements: loan notes, rental, labour and prenuptial contracts. It’s all free.

How many clients have received legal assistance from You over the past year? How many cases have You won?

Strateg Law Firm has provided legal assistance to 151 individuals, both Ukrainian and foreign citizens. As for legal entities, we have serviced 53 of them. Over the past two years we won 38 cases. Among those clients who permitted to make the information public – the case of Vinnytsia Industrial Group and the case of Megapolis Insurance Company against the National Commission for the State Regulation of Financial Services Market.

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How have the requests of Your customers changed over the last year?

Increased confidentiality and the desire to get flawless legal services in the shortest time.

Tell us about the company’s strategy for the next three years.

Since our company has been on the market for almost eight years, three years later I see it in the Top-20 best law firms of Ukraine. I am confident in my abilities, in my team, I see their commitment, and they love what they do. I find it easy to cooperate with them because I attract the best. Everyone who works for me has a diploma with honors.

How did You form your team?

The first person to support me was my wife, we formed our team together. Mainly, we were choosing the specialists upon the recommendations. I offered them the best conditions, my colleagues value experience and skills first, and the financial component comes secondary.  For me it has always been important to see that an employee loves his or her job and wants to grow and improve professionally.

You say that You see the company in the Top-20. Which companies do You consider the paragons?

Legal business is the sphere of services and as I said earlier it is impossible to win all the cases. Also, something can go wrong tomorrow in the companies which today occupy positions in the Top-20: the human factor can play its role, a lawyer might live the company, something can fail, there may be the change of management in the client’s company, or they can choose another provider. So, there is the competition and there is the emotional component in the choice of partner. Now, it is important to identify those companies that will be on the market together with us in three or five years. The world is progressing now, the Internet is gaining its speed, technologies are perfecting. Some industries are in decline, but others are developing and growing dynamically. It is important to prioritize and be sure that in five years they will be exactly the same.

Tell us about the innovative Internet-services that You use. How do You relate the provision of assistance by the employees of the company to a client to, perhaps, the service?

We have launched the application with a personal account option for the owners of our packages. In their personal account the clients can see the services used, when and who acted as their lawyer. In the nearest time the client will be able to see the stage their case is at, and will have the possibility to edit and comment the document. It is comfortable if a person is abroad, for instance, and has no time to make phone calls.

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What kind of services do You provide to legal entities?

There are different packages for legal entities – from the standard one to elite. On the basis of our main areas of business – administrative, commercial, civil, family and inheritance law – the customer chooses the most suitable package.

How do You work with regular customers? Are there any loyalty programs for them?

We give our loyal customers additional discounts or increase their current discount. If we see that a client needs a bigger quantity of hours than that within his or her package, we can leave the price of entire package unchanged.

Your customers usually are the first persons of the company, or legal departments also contact You?

Basically, the top managers and owners. I realize that in-house lawyers always have fear of losing their job if the boss or the manager engages external company for provision of legal services. But one or two employees cannot assist a large company in all specifics of its activity. Such practice cannot provide full protection. A single lawyer cannot be attending courts all over the country. It is not effective. If you sell goods or provide services you have to concentrate on increasing the pool of your clients. Let’s assume, the owner starts taking a subway in order to save money to buy paper towels…Yes, he or she will save pennies, but the progress in global matters will be lost. Everyone should do their work and then our country will be under supervision of those people who understand and know what to do, but not just try to persuade the electorate. This is the problem of our country – the lack of professionalism in the bodies of the highest authority.

There is a number of law firms that, working with this or that client, provide weekly reports on the work performed. Do You stick to such form of reporting?

In our company at this stage, before concluding any deal with a client, we sign a confidentiality agreement. Without the consent of the client, we cannot make any information public. The clients don’t want others to know who is protecting them and we, in turn, understand their style of behavior in the processes. We do not practice reporting now, but we will come to it. Whenever the client grants their consent, we will implement this approach as it will be the best advertising for us.

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How many legal entities comprise the portfolio of Strateg Law Firm?

I don’t focus on the quantity. I guess tens, but I need to calculate. The worst thing that can happen when you are willing to undertake a large-scale process is failure. It is really hard to make a reputation and it is pretty easy to lose it. Building image takes years, but you can lose it within 15 minutes.

How do You manage to run the business effectively?

Due to tight schedule I often have to deal with issues on the go. It helps to save time of a client and run the business effectively.

Considering Your own experience, how can You characterize Ukrainian market of legal services?

I would call it “disparate”. There are a lot of law firms on the market, but most of them do not provide a client with the desired service. Fierce competition encourages law firms to obtain cases at any price despite the fact that a client does not have a clear understanding of the ultimate cost of legal services needed to achieve the desired result and the time required for it.

Is there anything You don’t like about the work of colleagues? Are there any aspects which are unacceptable for You?

Figuratively speaking, that’s the mentality or economic conditions.

Perhaps, You as the owner may be DISSATISFIED with some things. What that could be? How much this affects the effectiveness of the services You provide?

I cannot tolerate irresponsible and non-systematic approach. I respect “systemic” lawyers. They organize the process responsibly, wisely, understandably and of course, without any interruptions. Different objective and subjective situations happen – it’s a human factor, but systemic approach helps to resolve the situation. For any business striving to be successful there is one fundamental thing – the systemic approach and control over all processes.

How do You see our judicial system? What system would You like to see?

I still believe that the reform will be implemented, and we will get the judicial system in which the decisions are made in accordance with the law. It is clear that first of all the judges have to receive decent salary. That salary they receive today provokes them, and the temptation is huge. Therefore, the judges should be paid appropriately, and then it will be necessary to monitor their income and expenses.

Is there a law firm which You consider a role-model? Perhaps, it may be a foreign company whose example You follow.

 

There are companies that have billions of dollars in revenues, and when their representatives come, they say: “When I joined the company, it didn’t earn much, about 120 million dollars a year.” The company employs 700 lawyers worldwide, their income is more than a billion. What are they doing? I would call it the major league of law. We are talking about inter-state conflicts. For example, the protection of the interests of Ukraine in cases against Russia. The communications of the law firm are conducted at the level of first people of a state. In my understanding it is the major league because at least the Minister of Justice, the Prime Minister and the President want to listen to you, and you can bring your position to them.

Do You honestly pay taxes, or, say, there are weaknesses, which can be bypassed?

No, in this case, it is our position of principle, and it suits all our clients. We want to drive on good roads, right? All our payments are non-cash. We cannot build a democratic state, if we avoid responsibilities all the time. I am surprised by the regularity of changes in tax legislation and reporting form, that’s not normal. Why reinvent the wheel? Pick the best tax system of the world, bring it here and stop trying to invent something. That’s what was done in Singapore. We need small and medium businesses to develop. They need the most effective rates and certain tax breaks in order to make people want to do business. Our financial and bank systems also play a significant role. The state should provide funds through state banks to start this business with preferential rates. Obviously, the state has never been, is not and will not be an effective owner. We really need to minimize the taxes for the business to be able to grow, but not spend a third of the time on administrative and tax issues.

25What inspires You?

The success.

For You the success is the case You won?

It’s a satisfied client. It is impossible to win all the cases. Nobody can do it. There is always a risk of sudden changes in circumstances, but when you provide high-quality services, it is already a success. Many people believe that law firms are designed only for legal entities. But that’s not true! Do not be afraid of “exorbitant” cost of legal services. On the contrary, our timely work will help to prevent much bigger losses and disappointments in the future. In turn, we will foresee and get everything ready.

Oleg Nalyvayko, born December 6, 1976 in a family of doctors in Ivano-Frankivsk. Oleg’s parents have treated people all their life, that’s why helping people is a tradition of Nalyvayko family. Oleg also planned to devote himself to medicine. However, school completion coincided with difficult years: economic crisis, the collapse of the Soviet Union, doctors and teachers had not received salaries for months. At that very moment young Oleg Nalyvayko in his own way continued a good family tradition: he entered law faculty of Kyiv National Economic University because lawyers, like doctors, always come to the rescue, even in the most difficult situations. Being a fifth-year, Oleg decided to find a job in order not to live off his parents and to start his own career path. In 1997 a graduate student joined the National Agency for Reconstruction and Development of Ukraine, and eventually moved to the Ministry of Economy of Ukraine. Step by step, Oleg Nalyvayko has passed all stages of the civil service and in 2001 became the youngest officer of the Ministry of Economy, occupying the post of deputy head of the department.