Page 34 - The Handbook - Law Firm Networks 2018
P. 34
The Handbook: Law Firm Networks
This may not have been the case. PWC has established a 2,400-attorney network covering 75 countries. It
has also recently acquired Booz & Company, a multinational consulting firm, to expand its services. The
other Big 4 with BDO have followed suit. The multidisciplinary network model was not dead. If the member
firms were themselves independent, there was no prohibition to having a multidisciplinary network. This was
recognized by the ABA.
Today there are 10 multidisciplinary networks outside of the Big 4. The largest is in legal and accounting.
World Services Group (WSG), Geneva Group International, and MSI International are Level 3 networks
with a highly developed technology that creates complete transparency. WSG is the largest group with
almost 20,000 professionals.
Specialty Networks – Boutiques
Specialty networks have arisen as separate and distinct models from the general legal, accounting, and
multidisciplinary areas that cover a wide range of industries and practices. While the other networks have
developed practice and industry groups, the specialty networks have focused on a single industry or practice.
Today there are 41 specialty networks. The primary networks are in tax, employment, intellectual property,
insurance, and immigration. These networks are generally Level 2, primarily because this level meets the
needs of the members.
The specialty networks are mainly focused on the legal profession; however, several of the specialty
networks are themselves multidisciplinary. Specialty networks tend to be Level 2 if the focus of the practice
does not allow for a large budget that is necessary to promote the network. The networks are internally
focused because only specific practitioners participate in them.
One network has been created as a network of small boutique firms in a wide range of specialties. Each
member has access to the specialties of the other boutiques firms. In this way the network is a general
network. Each of the boutiques that have the same practices also has their own boutique practice networks.
The Future
With more than 170 networks already in existence, law firm networks are here to stay; the issue will be their
status. Today networks in the legal profession do not have the same level of respect that is found in the field
of accounting. The reason could be that the large New York and London firms were the first to proactively
globalize. The networks were more of a reaction to this globalization rather than an organized proactive
strategy. Perhaps legal networks were originally tarnished because they originated as clubs or even franchises
in reaction to other development.
However, this is perception is about to change, because many of the elite law firms are themselves also
searching for more flexible model. The Big 4 have now organized their own legal networks under the
umbrella of their existing accounting and consulting networks of independent firms. As these models are
better understood, the lines between a network and a law firm may blur.
The verein is a model that permits the firms to use the same brand name and have similar attributes as
accounting networks such as the Big 4.172 However, the verein firms may be closer to having independent
firms than the market perceives.173 The fact they may not share revenues but do share expenses raises other
172 Id.
173 Dentons absorbed Dacheng in November of 2015, almost doubling in size. Dacheng itself is a group of independent firms that were not fully
integrated. Yun Kriegler, Dacheng: We're Not Grown Up Enough to Merge – Yet, THE LAWYER, May 2, 2014, www.thelawyer.com/analysis/behind-
the-law/the-leadership-interview/dacheng-were-not-grown-up-enough-to-merge-yet/3020112.article?adfesuccess=1.
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This may not have been the case. PWC has established a 2,400-attorney network covering 75 countries. It
has also recently acquired Booz & Company, a multinational consulting firm, to expand its services. The
other Big 4 with BDO have followed suit. The multidisciplinary network model was not dead. If the member
firms were themselves independent, there was no prohibition to having a multidisciplinary network. This was
recognized by the ABA.
Today there are 10 multidisciplinary networks outside of the Big 4. The largest is in legal and accounting.
World Services Group (WSG), Geneva Group International, and MSI International are Level 3 networks
with a highly developed technology that creates complete transparency. WSG is the largest group with
almost 20,000 professionals.
Specialty Networks – Boutiques
Specialty networks have arisen as separate and distinct models from the general legal, accounting, and
multidisciplinary areas that cover a wide range of industries and practices. While the other networks have
developed practice and industry groups, the specialty networks have focused on a single industry or practice.
Today there are 41 specialty networks. The primary networks are in tax, employment, intellectual property,
insurance, and immigration. These networks are generally Level 2, primarily because this level meets the
needs of the members.
The specialty networks are mainly focused on the legal profession; however, several of the specialty
networks are themselves multidisciplinary. Specialty networks tend to be Level 2 if the focus of the practice
does not allow for a large budget that is necessary to promote the network. The networks are internally
focused because only specific practitioners participate in them.
One network has been created as a network of small boutique firms in a wide range of specialties. Each
member has access to the specialties of the other boutiques firms. In this way the network is a general
network. Each of the boutiques that have the same practices also has their own boutique practice networks.
The Future
With more than 170 networks already in existence, law firm networks are here to stay; the issue will be their
status. Today networks in the legal profession do not have the same level of respect that is found in the field
of accounting. The reason could be that the large New York and London firms were the first to proactively
globalize. The networks were more of a reaction to this globalization rather than an organized proactive
strategy. Perhaps legal networks were originally tarnished because they originated as clubs or even franchises
in reaction to other development.
However, this is perception is about to change, because many of the elite law firms are themselves also
searching for more flexible model. The Big 4 have now organized their own legal networks under the
umbrella of their existing accounting and consulting networks of independent firms. As these models are
better understood, the lines between a network and a law firm may blur.
The verein is a model that permits the firms to use the same brand name and have similar attributes as
accounting networks such as the Big 4.172 However, the verein firms may be closer to having independent
firms than the market perceives.173 The fact they may not share revenues but do share expenses raises other
172 Id.
173 Dentons absorbed Dacheng in November of 2015, almost doubling in size. Dacheng itself is a group of independent firms that were not fully
integrated. Yun Kriegler, Dacheng: We're Not Grown Up Enough to Merge – Yet, THE LAWYER, May 2, 2014, www.thelawyer.com/analysis/behind-
the-law/the-leadership-interview/dacheng-were-not-grown-up-enough-to-merge-yet/3020112.article?adfesuccess=1.
- 21 -
