Page 38 - The Handbook - Law Firm Networks 2018
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The Handbook: Law Firm Networks
fundamental purpose of the network. This is easily discerned if they are willing to invest a nominal amount
of money and time to meet and participate in the organizing of the network.
Resources that are available need to be identified. They consist of human, physical, and financial capital. The
sequence of their deployment and use is part of the plan. Information is key in both the planning and
execution phases. Information will continue to play a vital role in the transformation from an organizational
process into an actual network.
One key type of information is the assessment of the organizers and potential members. As in any group of
firms and individuals, there are different levels of commitment: those who are natural leaders;190 those who
want to be part of the development but not too committed; and those who will fully commit only after the
work has been done. The most important part is the commitment of the organizing group and the original
members. If there is no strong and uniform commitment, the network may not be formed. If formed, it will
not function for the benefit of the members. The initial success of a network is not measured by business
referred, cost savings, access to resources, or other benefits of membership, but rather by the commitment of
its members and organizers. This commitment must be maintained for several years until the network is fully
launched and each of its functions is implemented.
Commitment requires a consensus on some fundamental questions: Why are we creating a network? What is
the purpose of the network? Who is responsible? How much is it going to cost in time and money? How will
the network be financed? Who will be the members? How will they be selected? Who will manage the
network? Where will the network be in one year, two years, three years, etc.? Ownership of the corporation
needs to be defined. The members will own most networks. Level 3 and Level 4 networks are generally
Delaware corporations, EEIGs,191 Swiss vereins,192 or CLG193 although other combinations can be used.194
The leadership functions must then be defined along with the bylaws. The plan should be dynamic and
flexible since it is not possible to anticipate every factor.
The most important element is defining the organizing processes. For example, how is the organizing
committee going to attract potential members? How are they going to continue to attract buy-ins among
potential members? How are they going to manage expectations during the process? What are the defined
outcomes of the process that will lead to the actual formation of the network? What are the materials that are
going to be presented to potential members?
Members need to be selected. The easiest way to select members is to use the contacts, i.e., the personal
relationships of the organizing committee. The problem is that these contacts may not meet the standards that
were established when the organizing committee discussed membership. For this reason the standard
(objective and subjective) must be clearly understood by the committee members. They may even be written
190 The DuPont network described the different types of individual and how they work in the network environment. “Team players are people who can
control territorial instincts and ‘play well with others.’ Lone rangers do not make good team members. Team players also bring different skill sets and
personality traits to the collaboration. We believe that the legal department must take the following steps: Choose people who are good tool users.
Professional competence is crucial, but is an assumed attribute. The team members must also be facile with the adoption and use of new technology
and work processes; Choose good communicators. People who are effective networkers generally make better team members. People who seek to
control access to information as a means of acquiring power rather than sharing it for mutual advantage generally make poor collaborators. Choose
smart risk takers. Team members who are willing to intelligently assess and take risks and who are willing to share in the rewards and penalties
associated with those risks are preferred team members. Choose trustworthy team members. Participants who are honest, loyal, reliable, and open are
more effective in collaborative work groups than those who lack one or more of these attributes.” Id.
191 Kirsty Wright, United Front, THE LAWYER, September 5, 2011, www.thelawyer.com/united-front/1009054.article.
192 A verein is a Swiss business form that DTT alleges is legally distinct from its member organizations. See Jeffries v. Deloitte Touche Tohmatsu
Int’l, 893 F. Supp. 455, 457 n.1 (E.D. Pa. 1995). “Verein” means association, society, club, or union. CASSELS GERMAN DICTIONARY 662 (1978); see
also LANGENSCHEIDT’S DICTIONARY OF THE ENGLISH AND GERMAN LANGUAGES 1163 (6th ed. 1970); see also Johnson, supra note 142.
193 Chris Johnson, Global Law Firms and Vereins: The End of the Affair? The Am Law Daily, March 22, 2017 discusses the rise of the CLG as an
alternative form of network that reduces the risk of vicarious liability.
194 See PRIMEGLOBAL, primeglobal.net/content/past-present-future-0 (last visited Feb. 2, 2016).
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fundamental purpose of the network. This is easily discerned if they are willing to invest a nominal amount
of money and time to meet and participate in the organizing of the network.
Resources that are available need to be identified. They consist of human, physical, and financial capital. The
sequence of their deployment and use is part of the plan. Information is key in both the planning and
execution phases. Information will continue to play a vital role in the transformation from an organizational
process into an actual network.
One key type of information is the assessment of the organizers and potential members. As in any group of
firms and individuals, there are different levels of commitment: those who are natural leaders;190 those who
want to be part of the development but not too committed; and those who will fully commit only after the
work has been done. The most important part is the commitment of the organizing group and the original
members. If there is no strong and uniform commitment, the network may not be formed. If formed, it will
not function for the benefit of the members. The initial success of a network is not measured by business
referred, cost savings, access to resources, or other benefits of membership, but rather by the commitment of
its members and organizers. This commitment must be maintained for several years until the network is fully
launched and each of its functions is implemented.
Commitment requires a consensus on some fundamental questions: Why are we creating a network? What is
the purpose of the network? Who is responsible? How much is it going to cost in time and money? How will
the network be financed? Who will be the members? How will they be selected? Who will manage the
network? Where will the network be in one year, two years, three years, etc.? Ownership of the corporation
needs to be defined. The members will own most networks. Level 3 and Level 4 networks are generally
Delaware corporations, EEIGs,191 Swiss vereins,192 or CLG193 although other combinations can be used.194
The leadership functions must then be defined along with the bylaws. The plan should be dynamic and
flexible since it is not possible to anticipate every factor.
The most important element is defining the organizing processes. For example, how is the organizing
committee going to attract potential members? How are they going to continue to attract buy-ins among
potential members? How are they going to manage expectations during the process? What are the defined
outcomes of the process that will lead to the actual formation of the network? What are the materials that are
going to be presented to potential members?
Members need to be selected. The easiest way to select members is to use the contacts, i.e., the personal
relationships of the organizing committee. The problem is that these contacts may not meet the standards that
were established when the organizing committee discussed membership. For this reason the standard
(objective and subjective) must be clearly understood by the committee members. They may even be written
190 The DuPont network described the different types of individual and how they work in the network environment. “Team players are people who can
control territorial instincts and ‘play well with others.’ Lone rangers do not make good team members. Team players also bring different skill sets and
personality traits to the collaboration. We believe that the legal department must take the following steps: Choose people who are good tool users.
Professional competence is crucial, but is an assumed attribute. The team members must also be facile with the adoption and use of new technology
and work processes; Choose good communicators. People who are effective networkers generally make better team members. People who seek to
control access to information as a means of acquiring power rather than sharing it for mutual advantage generally make poor collaborators. Choose
smart risk takers. Team members who are willing to intelligently assess and take risks and who are willing to share in the rewards and penalties
associated with those risks are preferred team members. Choose trustworthy team members. Participants who are honest, loyal, reliable, and open are
more effective in collaborative work groups than those who lack one or more of these attributes.” Id.
191 Kirsty Wright, United Front, THE LAWYER, September 5, 2011, www.thelawyer.com/united-front/1009054.article.
192 A verein is a Swiss business form that DTT alleges is legally distinct from its member organizations. See Jeffries v. Deloitte Touche Tohmatsu
Int’l, 893 F. Supp. 455, 457 n.1 (E.D. Pa. 1995). “Verein” means association, society, club, or union. CASSELS GERMAN DICTIONARY 662 (1978); see
also LANGENSCHEIDT’S DICTIONARY OF THE ENGLISH AND GERMAN LANGUAGES 1163 (6th ed. 1970); see also Johnson, supra note 142.
193 Chris Johnson, Global Law Firms and Vereins: The End of the Affair? The Am Law Daily, March 22, 2017 discusses the rise of the CLG as an
alternative form of network that reduces the risk of vicarious liability.
194 See PRIMEGLOBAL, primeglobal.net/content/past-present-future-0 (last visited Feb. 2, 2016).
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