Hi there,
Welcome to a dive into the stories, ideas and other bits and pieces that cross my mind and desk in my day job as professional services editor at The Australian Financial Review.
I’m not sure what I’ll do with this newsletter, so please let me know what you’re interested in reading about. At this point, everything is up for grabs - how often, the topics, even the tone. But until then, I’m going to freestyle it.
An item about Accenture to start with, specifically this story on CRN, Accenture Lawsuit: Ex-Senior Exec Is ‘Imminent Threat’ To Trade Secrets, by O’Ryan Johnson.
Essentially, Accenture’s leaders are very displeased that managing director (their version of partner) Nadine El-Etr Moore has gone to work for the strategy firm Boston Consulting Group.
Accenture claims she abruptly quit and didn’t let them know she intended to take up a similar role at BCG in the same region. Accenture alleges this is in violation of a non-compete order that stops her taking the same job in the same region for a year.
My interest in the case is the broader question of what is reasonable in the professional services sector in terms of non-compete clauses for exiting partners/MDs.
Is a year reasonable? One firm in Australia can enforce a six months notice period plus an 18 month non-compete period. That’s two years in total after they’ve quit. Is that reasonable? And is it legally enforceable?
Perhaps this case may go through to trial and answer the legal questions in any case.
Yours,
Ed.