Page 44 - The Handbook - Law Firm Networks 2018
P. 44
The Handbook: Law Firm Networks
act for their own self-interests.217 The network itself has vast inherent authority and can require members to
comply with agreed-on policies. Members, as professional firms, are subject to government and professional
regulations. Professional services networks are subject to these same regulations. As organizations of
professionals, members have strong feelings on how the organization should be governed, operate, and
function because they are professionals.
Networks can be extraordinarily complex in a global environment that may include as many as 100 different
countries. They involve many different cultures and different ways of conducting business. Operating such
an organization is challenging because members may lack experience in other regions of the world. Their
expertise is in their local market. The networks must take into consideration all perspectives in the
governance and operation processes.
The goals of networks’ governance and operations are to achieve certain standards for the members. The
standards to attain the goals, according to Freidheim, are innovation, achieving the value propositions for
members, maximizing operating performance, the development of process, developing talented people, and
expanding the capabilities of the members. Friedheim illustrated the capacity of a network for achieving each
of these elements.218
Exhibit 5 – Setting Standards through Operations219
For example, the highest standards
for process development will be
when a member builds internally.
This is because the member has full
control over the processes.
Networks, on the other hand,
expand members’ capabilities
because they are able to draw in
resources of other members.
Key: The degree to which a circle is filled reflects a given approach’s ability to meet the Acquiring businesses is the least
selected criteria. effective method for establishing
high standards because the
purchased company is only being
absorbed.
Governance and operations issues are clearly more linked. The reason why a network is unable to develop
the best processes is because the network members do not have authority over one another. The control of the
217 It is important to note that network governance and operations issues are tied together in professional services networks. Members of a network are
members in order to promote themselves to other members. By working together and contributing their resources, they benefit themselves. Smith,
supra note 24.
218 See supra Chapter 1, What is Professional Services Network?
219 Freidheim, supra note 14.
- 31 -
act for their own self-interests.217 The network itself has vast inherent authority and can require members to
comply with agreed-on policies. Members, as professional firms, are subject to government and professional
regulations. Professional services networks are subject to these same regulations. As organizations of
professionals, members have strong feelings on how the organization should be governed, operate, and
function because they are professionals.
Networks can be extraordinarily complex in a global environment that may include as many as 100 different
countries. They involve many different cultures and different ways of conducting business. Operating such
an organization is challenging because members may lack experience in other regions of the world. Their
expertise is in their local market. The networks must take into consideration all perspectives in the
governance and operation processes.
The goals of networks’ governance and operations are to achieve certain standards for the members. The
standards to attain the goals, according to Freidheim, are innovation, achieving the value propositions for
members, maximizing operating performance, the development of process, developing talented people, and
expanding the capabilities of the members. Friedheim illustrated the capacity of a network for achieving each
of these elements.218
Exhibit 5 – Setting Standards through Operations219
For example, the highest standards
for process development will be
when a member builds internally.
This is because the member has full
control over the processes.
Networks, on the other hand,
expand members’ capabilities
because they are able to draw in
resources of other members.
Key: The degree to which a circle is filled reflects a given approach’s ability to meet the Acquiring businesses is the least
selected criteria. effective method for establishing
high standards because the
purchased company is only being
absorbed.
Governance and operations issues are clearly more linked. The reason why a network is unable to develop
the best processes is because the network members do not have authority over one another. The control of the
217 It is important to note that network governance and operations issues are tied together in professional services networks. Members of a network are
members in order to promote themselves to other members. By working together and contributing their resources, they benefit themselves. Smith,
supra note 24.
218 See supra Chapter 1, What is Professional Services Network?
219 Freidheim, supra note 14.
- 31 -
