Page 16 - The Handbook - Law Firm Networks 2018
P. 16
The Handbook: Law Firm Networks
From a theoretical point of view, networks are an effective model and a powerful system for enhancing
services. The members and the networks are different parts of the resource equation for providing members
seamless, high-quality, local, and global services. There is no real limit as to what can be accomplished
through a network when the network and its membership work with each other. This collaboration is at the
heart of the network.
The respective strengths of the membership and the network for achieving specific tasks were well illustrated
in a book by Cyrus Freidheim entitled “The Trillion Dollar Enterprise” (1999). In his book Freidheim
evaluates many different types of networks. His premise is that every network has potential defined by the
human, technical, and financial interests of its members. The book sets out some standards by which to
measure the effectiveness of a network as a business model in expansion to local and global markets.31
The following charts illustrate how networks can effectively assist members in building a presence in all
local markets as well as developing a global presence to meet their clients’ needs. The charts distinguish
between a company building internally, acquiring another company, or becoming a member in a network.
The greatest strength of a network is that the member can have a local presence everywhere to serve clients.
Network membership is equally as strong as building internally for global expansion.
Exhibit 2 – Expand Locally or Globally
Locally32 Globally33
Key: The degree to which a circle is filled reflects a given approach is For example, acquisitions fail to meet the ability to take and keep a
able to meet the selected criteria.
lead in all-important markets, whereas a network fulfills that need.
The charts do not reflect the relative costs of internally developing a global business and those associated
with developing the same business through leveraging network membership. For a company to internally
develop a global and local presence takes decades and billions of dollars. For a professional services firm to
start a network that will develop the same market penetration may take a decade and cost only millions of
31 Cyrus Freidheim, THE TRILLION-DOLLAR ENTERPRISE: HOW THE ALLIANCE REVOLUTION WILL TRANSFORM GLOBAL BUSINESS (1999).
32 Id. at 62.
33 Id. at 58.
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From a theoretical point of view, networks are an effective model and a powerful system for enhancing
services. The members and the networks are different parts of the resource equation for providing members
seamless, high-quality, local, and global services. There is no real limit as to what can be accomplished
through a network when the network and its membership work with each other. This collaboration is at the
heart of the network.
The respective strengths of the membership and the network for achieving specific tasks were well illustrated
in a book by Cyrus Freidheim entitled “The Trillion Dollar Enterprise” (1999). In his book Freidheim
evaluates many different types of networks. His premise is that every network has potential defined by the
human, technical, and financial interests of its members. The book sets out some standards by which to
measure the effectiveness of a network as a business model in expansion to local and global markets.31
The following charts illustrate how networks can effectively assist members in building a presence in all
local markets as well as developing a global presence to meet their clients’ needs. The charts distinguish
between a company building internally, acquiring another company, or becoming a member in a network.
The greatest strength of a network is that the member can have a local presence everywhere to serve clients.
Network membership is equally as strong as building internally for global expansion.
Exhibit 2 – Expand Locally or Globally
Locally32 Globally33
Key: The degree to which a circle is filled reflects a given approach is For example, acquisitions fail to meet the ability to take and keep a
able to meet the selected criteria.
lead in all-important markets, whereas a network fulfills that need.
The charts do not reflect the relative costs of internally developing a global business and those associated
with developing the same business through leveraging network membership. For a company to internally
develop a global and local presence takes decades and billions of dollars. For a professional services firm to
start a network that will develop the same market penetration may take a decade and cost only millions of
31 Cyrus Freidheim, THE TRILLION-DOLLAR ENTERPRISE: HOW THE ALLIANCE REVOLUTION WILL TRANSFORM GLOBAL BUSINESS (1999).
32 Id. at 62.
33 Id. at 58.
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