Page 35 - The Handbook - Law Firm Networks 2018
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The Handbook: Law Firm Networks
issues.174 The use of hyphenated names or the country retention of the previous name in the country, unlike
the Big 4, raises issues as to the strength of the brand. While is easier to add new firms, the model makes it
also easier for firms to leave since the loyalty may continue to the merged firm. Unlike the accounting firms,
which clearly are understood to be networks, the vereins want to continue to project the appearance of being
law firms. It may be difficult to have it both ways.
The vereins’ expectation is that the “Big 5” or “Big 10” law firms would emerge with them as the leaders. If
this were the case, they would be solidified in that position as leaders. However, given their relatively small
size, when compared to the traditional law firm network, the reverse may be true as technology and market
segmentation propel these networks to the forefront. What could do this?
Networks to date have been largely reactive rather than proactive. A new organization known, AILFN
(Association of International Law Firm Networks) is changing this.175 AILFN is a trade association owned
by law firm networks to represent their common interests. AILFN has four purposes: (1) enhance the position
and recognition of all networks in the legal market; including the importance of Independent Business Law
Firms (IBLF) which represent 20 percent of all legal business; (2) establish common principles to maintain
standards of quality; (3) provide a forum for networks to exchange non-confidential information; and (4)
negotiate agreements with vendors that can increase the efficiency and effectiveness of networks and their
members. AILFN will have network members whose members have more than 200,000 attorneys, in 5,000-
plus offices and who cumulatively bill over $120 annually. This is approximately 20 percent of the
commercial legal services market on earth.
How does AILFN change the equation? It does so by providing a common platform to communicate to
clients the effectiveness and efficiency of networks. With new technology, this communications changes the
dynamics of marketing discussed in Chapter 6. Through Locate Law Networks and Requests for
Qualifications, AILFN has changed how networks are found and how individual lawyers are selected. This
technology will be combined with measurable quality standards. The result will be a new transparency.
Given the IBLF represents 20 percent of the legal business services market, the vehicle for communicating
the advantages is already apparent.
Is the world coming full circle?176 What is changing is that these models are being understood for what they
are: delivery systems for legal services. Each has their inherent strengths and weaknesses as models. The
question is why the traditional law and multidisciplinary network model is different from the international
law firm, and also distinguishable from the verein and the Big 4. It is up to each of four alternatives to make
these distinctions and demonstrate their respective values.
175 ASSOCIATION OF INTERNATIONAL LAW FIRM NETWORKS, www.ailfn.com (last visited Feb. 2, 2016).
176 See Johnson, supra note 142, www.americanlawyer.com/PubArticleTAL.jsp?id=1202591158156&slreturn=20130815192228; see also Ed
Shanahan, The Am Law 100: Grand Illusion, THE AM LAW DAILY, May 2, 2011, amlawdaily.typepad.com/amlawdaily/2011/05/grandillusion.html.
Peter Kalis, managing partner of KL Gates, argues that some firms in the Am Law 100 should not be ranked because they are not law firms but Swiss
vereins. Apparently, any form of non-traditional management is not acceptable in the legal profession. See Staci Zaretsky, Bow Before the Global 100,
the Top-Grossing Law Firms on the Planet, ABOVE THE LAW, Oct. 1, 2013, abovethelaw.com/2013/10/bow-before-the-global-100-the-top-grossing-
law-firms-on-the-planet/ (DLA Piper and Baker & McKenzie, who are numbers 1 and 2, are vereins).
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issues.174 The use of hyphenated names or the country retention of the previous name in the country, unlike
the Big 4, raises issues as to the strength of the brand. While is easier to add new firms, the model makes it
also easier for firms to leave since the loyalty may continue to the merged firm. Unlike the accounting firms,
which clearly are understood to be networks, the vereins want to continue to project the appearance of being
law firms. It may be difficult to have it both ways.
The vereins’ expectation is that the “Big 5” or “Big 10” law firms would emerge with them as the leaders. If
this were the case, they would be solidified in that position as leaders. However, given their relatively small
size, when compared to the traditional law firm network, the reverse may be true as technology and market
segmentation propel these networks to the forefront. What could do this?
Networks to date have been largely reactive rather than proactive. A new organization known, AILFN
(Association of International Law Firm Networks) is changing this.175 AILFN is a trade association owned
by law firm networks to represent their common interests. AILFN has four purposes: (1) enhance the position
and recognition of all networks in the legal market; including the importance of Independent Business Law
Firms (IBLF) which represent 20 percent of all legal business; (2) establish common principles to maintain
standards of quality; (3) provide a forum for networks to exchange non-confidential information; and (4)
negotiate agreements with vendors that can increase the efficiency and effectiveness of networks and their
members. AILFN will have network members whose members have more than 200,000 attorneys, in 5,000-
plus offices and who cumulatively bill over $120 annually. This is approximately 20 percent of the
commercial legal services market on earth.
How does AILFN change the equation? It does so by providing a common platform to communicate to
clients the effectiveness and efficiency of networks. With new technology, this communications changes the
dynamics of marketing discussed in Chapter 6. Through Locate Law Networks and Requests for
Qualifications, AILFN has changed how networks are found and how individual lawyers are selected. This
technology will be combined with measurable quality standards. The result will be a new transparency.
Given the IBLF represents 20 percent of the legal business services market, the vehicle for communicating
the advantages is already apparent.
Is the world coming full circle?176 What is changing is that these models are being understood for what they
are: delivery systems for legal services. Each has their inherent strengths and weaknesses as models. The
question is why the traditional law and multidisciplinary network model is different from the international
law firm, and also distinguishable from the verein and the Big 4. It is up to each of four alternatives to make
these distinctions and demonstrate their respective values.
175 ASSOCIATION OF INTERNATIONAL LAW FIRM NETWORKS, www.ailfn.com (last visited Feb. 2, 2016).
176 See Johnson, supra note 142, www.americanlawyer.com/PubArticleTAL.jsp?id=1202591158156&slreturn=20130815192228; see also Ed
Shanahan, The Am Law 100: Grand Illusion, THE AM LAW DAILY, May 2, 2011, amlawdaily.typepad.com/amlawdaily/2011/05/grandillusion.html.
Peter Kalis, managing partner of KL Gates, argues that some firms in the Am Law 100 should not be ranked because they are not law firms but Swiss
vereins. Apparently, any form of non-traditional management is not acceptable in the legal profession. See Staci Zaretsky, Bow Before the Global 100,
the Top-Grossing Law Firms on the Planet, ABOVE THE LAW, Oct. 1, 2013, abovethelaw.com/2013/10/bow-before-the-global-100-the-top-grossing-
law-firms-on-the-planet/ (DLA Piper and Baker & McKenzie, who are numbers 1 and 2, are vereins).
- 22 -
